3/17/25 - $jill - Big chicks dig the long ball

3/17/25 :: VROCKSTAR :: JILL
Big chicks dig the long ball

- co seems to be chugging along
- 20%+ ROIC "not bad at all"
- pretty niche category - won't be stepping on any lululemon toes and vice versa (*ouch*) anytime soon
- i walk by a store occasionally and accidentally make a comment when the wife is with me about going in - and truly accidentally - the clothes look legit
- 68 mm of FCF on ex leases ent value of 400 ish... so even say 60 on 450... is low teens
- only downside i see here is i can't lock in some gainz w options chain (non existent) and it would be one for a small 1-2% rental
- but for now i think the R/R seems good enough for an earnings punt seeing names like GAP and many other "staples" retailers do just fine
- don't love the tariff exposure - but what's new - we all saw ULTA crush one out of the park
- so let's pour one out for the big chicks and hit this long ball?

V