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Fashion and Wellness Sector Sees High Short Interest Fashion and Wellness Sector Sees High Short Interest

Blank paper labels hang on the clothes rails in the store

wera Rodsawang/Moment via Getty Images

Baird analysts in a Morning Report delineated the short interest across the fashion and wellness sector for the Jan. 31 reported period.

Short interest levels can provide valuable insights into shifts in investor sentiment, according to the analysts. They positioned the short interest as a percentage of the float, as of the end of January.

Savers Value Village (SVV) had the highest short interest with 37.5% of the float sold short, followed by Kohl’s Corp. (KSS) with 26.8% (above the one-year average of 22.1%) and Revolve Group (RVLV) with 26.2% (above the one-year average of 25.5%).

For comparison, companies with the lowest short interest encompassed The TJX Co. (TJX) and Ross Stores (ROST) at about 1% each, and Lululemon Athletica (LULU) at 2.6%.

“Overall, short interest across our coverage was modestly lower sequentially with a median of 5.2% (compared to 5.7% exiting December),” noted the analysts.

The report also unveiled increases in shares sold short in companies including Warby Parker (WRBY), Ulta Beauty (ULTA), and Birkenstock Holdings (BIRK), as well as decreases in Urban Outfitters (URBN), Lululemon (LULU), and Tapestry (TPR).

Short interest as a percentage of the float, ranked from highest to lowest:

  • Savers Value Village (SVV) – 37%
  • Kohl’s Corp. (KSS) – 27%
  • Revolve Group (RVLV) – 26%
  • Birkenstock Holdings (BIRK) – 20%
  • The RealReal Inc. (REAL) – 17%
  • The Gap Inc. (GPS) – 13%
  • Warby Parker (WRBY) – 10%
  • Urban Outfitters (URBN) – 7%
  • e.l.f. Beauty (ELF) – 6%
  • Capri Holdings Limited (CPRI) – 5%
  • Burlington Stores (BURL) – 5%
  • Bath & Body Works Inc. (BBWI) – 3%
  • Ulta Beauty (ULTA) – 3%
  • Tapestry (TPR) – 3%
  • Lululemon Athletica (LULU) – 3%
  • Ross Stores (ROST) – 1%
  • The TJX Companies (TJX) – 1%
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