Consumer: Five Tactical Takes

This tactical update reviews Q1 earnings from major consumer retailers and restaurants, noting strong beats from TGT and CAVA while highlighting a more nuanced reaction to LOW and signs of momentum at VFC.

Key Takeaways

• 1.Target (TGT) significantly exceeded expectations for Q1 comps, driven by transaction growth, although the bottom-line guide raise was modest.
• 2.Lowe's (LOW) met its in-line comp expectations but underperformed relative to the market's hope for a beat, narrowing its performance gap with Home Depot.
• 3.CAVA Group continues to show exceptional resilience with a 9.7% comp beat and strong 2Q momentum despite broader restaurant sector headwinds.

Table of Contents

• Here is what we are watching from a tactical perspective
• Notice to Australian Investors
• Additional Disclaimers
• Notice to Brazilian Investors
• Notice to Investors in the European Economic Area
• Notice to Investors in Korea
• Notice to Investors in Japan
• Notice to Investors in New Zealand
• Notice to Investors in Switzerland

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