Cowen & Co. Analyst Sees Disruption in Retail Stocks

The video discusses the potential impact of border tax adjustments on the US retail sector, highlighting the challenges faced by domestic businesses like Under Armour and Hanesbrands. It explores the structural changes in retail, such as the shift from department stores to direct sales and the role of Amazon. The video emphasizes the need for caution due to potential market downside and suggests strategies for retail success, including focusing on international business and direct distribution.

What is causing significant disruption in the US wholesale channel?

• Department and sporting goods stores ordering less inventory

• New government regulations

• Rise in online shopping

• Increased consumer demand

How might border tax adjustments impact the retail sector?

• Boost in international business

• Significant cut to earnings estimates

• Decrease in import costs

• Increase in domestic sales

What structural change is suggested for brands relying on department stores?

• Reduction in product lines

• Shift towards direct sales

• Increase in advertising

• Expansion into new markets

Which company is expected to become the largest apparel retailer in North America?

• Macy's

• Amazon

• Nike

• Walmart

Which companies are better positioned to handle border tax adjustments?

• Companies relying on department stores

• Companies with large domestic businesses

• Companies with significant international business

• Small cap companies