Stephanie Link Buys Dick's Sporting Goods and Starbucks on Consumer Strength

Consumer Spending Strength

• 💡 Consumer spending remains healthy, with retail sales up 5.7% year-over-year in September, an increase from 3.5% the prior month.
• 📊 Recent credit card spending data from JP Morgan shows a rise to 4.5% in November from 3.3% in October.
• 📈 Johnson Redbook data indicates retail sales are up 6%, suggesting the consumer is not in dire straits despite confidence numbers.

Dick's Sporting Goods Investment

• 🎯 Stephanie Link made her first-ever purchase of Dick's Sporting Goods stock.
• 📉 Despite an 11% year-to-date decline, the stock is seen as a strong franchise with best-in-class management.
• 🛠️ The company's core business showed strong comparable store sales of 5.7%, and management is expected to fix issues related to the poorly run Foot Locker.

Starbucks Expansion

• ☕ Link increased her stake in Starbucks, now her largest discretionary position.
• 🚀 The move is based on the new CEO, Brian Nickel, who is considered top management, and the company's progress on a turnaround.
• ✅ Starbucks reported its first positive comparable store sales in two years last quarter, with ongoing improvements in store experience, menu, and mobile payments.

Retail and Restaurant Sector Overview

• 🛍️ Other retail stocks like Gap, Walmart, Lowe's, Nike, Dollar General, and Five Below are seeing action, with Gap up nearly 10%.
• 🍔 Restaurants are also performing well, with Brinker and Chipotle showing notable gains.
• 🎢 While luxury brands have held up better, the middle-class consumer segment has struggled, creating a "hollowed out" consumer dynamic.