BofA confidence in off-price retailers rises, following the holiday period

let atwWrapper,atwContainerWidth,atwSliderBox,atwTotalWidth; function initATWSlider() { atwWrapper = $('.relatedInstruments'); atwSliderBox = atwWrapper.find('.slider'); atwContainerWidth = atwWrapper.width(); atwTotalWidth = atwSliderBox.width(); if(window.domainId === '2' || window.domainId === '3'){ atwWrapper.find('.sliderRight').addClass('js-slider-prev'); atwWrapper.find('.sliderLeft').addClass('js-slider-next'); } else { atwWrapper.find('.sliderRight').addClass('js-slider-next'); atwWrapper.find('.sliderLeft').addClass('js-slider-prev'); } if(atwSliderBox.find('.instrumentBox').length > 6){ atwWrapper.find('.js-slider-next').fadeIn(600); } } function atwMoveRight() { atwWrapper.find('.js-slider-prev').fadeIn(150); $(".slider > :visible:first").hide(150) $(".slider > :visible:last").next().show(150); if(!$(".slider > :visible:last").next().find('.name')()){ atwWrapper.find('.js-slider-next').fadeOut(150); return; } } function atwMoveLeft() { atwWrapper.find('.js-slider-next').fadeIn(150); $(".slider > :visible:last").hide(150); $(".slider > :visible:first").prev().show(150); if(!$(".slider > :visible:first").prev().find('.name')()){ atwWrapper.find('.js-slider-prev').fadeOut(150); return; } } initATWSlider(); //update star icon on adding/removing instrument to/from specific watchlist atwWrapper.on('click', 'label.addRow', function() { let parent = $(this).parent(); let checkedPortfolio = false; parent.find('input[type=checkbox]').each(function () { if($(this).is(':checked')){ checkedPortfolio = true; } }); let closestStar = $(this).closest('.addToPortWrapper').find('.star'); if(checkedPortfolio){ closestStar.addClass('added'); }else{ closestStar.removeClass('added'); } }); //update star icon on creating new watchlist atwWrapper.find('.js-create-watchlist-portfolio').find('a.js-create').on('click',function () { let parent = $(this).parent(); let watchlistName = parent.find('input[type=text]').val(); if(!watchlistName){ return; } let star = $(this).closest('.addToPortWrapper').find('.star'); star.addClass('added'); }); //update star icon on adding new position atwWrapper.find('.js-create-holdings-portfolio').find('.js-submit').on('click',function () { let addPositionForm = $(this).closest('.addToPortfolioPop').find('.holdingsContent'); let amount = addPositionForm.find('.js-amount').val(); if(amount < 1){ return; } let star = $(this).closest('.addToPortWrapper').find('.star'); star.addClass('added'); }); atwWrapper.find('.instrumentBox').find('.shortInfo').on('click',function () { if(!window.ga){ return; } let pairId = $(this).parent().find('.js-add-to-portfolio').attr('data-pair-id'); let pairType = window.atwPairTypes[pairId]; window.ga('allSitesTracker.send', 'event', 'content', 'symbol link clicked', '', { "dimension147":"symbol_link_clicked", "dimension163":"click", "dimension148":"symbol", "dimension162":"content add to watchlist", "dimension161":"article page", "dimension142":"article", "dimension75":pairType, "dimension138":pairId, "dimension118":"2975144" }); window.open($(this).attr('data-href')); }); window.atwPairTypes = {"525":"etf"};

By Sam Boughedda 

BofA analysts told clients in a research note Friday that the firm has increased confidence in off-price retailers.

BofA hosted a post-holiday call on off-price retailing with Darrell Gold, the Senior Vice President of Planning and Allocation for Bealls Outlet Stores, an off-price retailer with over 500 stores.

Gold told BofA that overall the holiday period was above expectations, and "inventory availability remains good." In addition, the analysts revealed that Gold is more optimistic today about the off-price space in 2023 compared to 30 days ago based on a strong holiday period and robust inventory availability.

"Off-price is accessing more & better brands (including some brands not carried in a long time) along with more product from brands already offered in stores. Better deals are contributing to healthy markups. While the deals are leaning toward casual and active, other categories like dressy, children's, and outdoors are still available in size," the analysts wrote.

Meanwhile, supply chain costs are "favorable" compared to last year, and Gold believes there will be a "continued improvement through 2023 but thinks the cost basis will likely settle at a new normal, above 2019 levels."

"Apparel strength continued through the holidays, particularly in wear to work and occasionwear and gift giving was exceptionally strong. Gold is seeing a greater comp surge in the higher-income cohort (income >$65K) compared to the lower-income cohort, although he noted that all income demos are exceeding expectations. He expects these customers are likely coming from department stores and other regional retailers and thinks these trends will continue as better brands attract higher-income customers," the analysts concluded.