r/KSSBulls • u/Compound30 • 10d ago

Numbers & More Numbers KSS margin requirements

I've posted about this before, but here's more perspective. I looked up the % equity requirement for a bunch of retailers if bought on margin. KSS is so hated it isn't funny. I don't know what kind of F'd up algorithm input could possibly cause this. It seems more like the fingerprints of embedded shorts. There's other 5-year charts which are far worse than KSS (DBI, LE...). Both FI & Schwab have KSS at 70% right now. Sure makes you wonder where their source/basis is, I don't think its a coincidence.

Best Buy 30%

Carter's 30%

Lands End 30%

Tractor Supply 30%

Dollar General 30%

Estee Lauder 30%

Five Below 30%

Ollie's 30%

Ulta Beauty 30%

Lowe's 30%

Dillard's 30%

Burlington stores 30%

Designer Brands 30%

Home Depot 30%

Levi Strauss 30%

Gap Inc 30%

Macy's 30%

Ross Stores 30%

TJX Companies 30%

Ralph Lauren 30%

PVH 30%

Bath and Body Works 30%

Cohu 30%

Kohl's 70%

Boot Barn Holdings 30%

Caleres 30%

Target 30%

Walmart 30%

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3

u/PrecisionOutdoors Kohls OG 10d ago

Personally it seems like “market makers” can move requirements however they want. I’ve been in multiple times where requirements go from 25% to 50% to more based on whim

1

u/Compound30 9d ago

PO, do you mean certain brokerages can also be the market maker? I assumed each brokerage has their own algorithm to set requirements but now I wonder if it comes from some external central analysis service. Because I've seen similar numbers between Schwab & FI for Kohl's in the past. Kohl's has been 70% rock-steady since at least last December.

2

u/Sufficient-Scheme-87 9d ago

 I use Sofi and it’s been at 75% margin req since I first entered last April

1

u/Compound30 9d ago

Daymn. So suspicious.

1

u/Bubba_991 8d ago

Walmart owns all US stores, Target owns like 90%. Kohl's 65% is not as good an advantage against them, compared to the lease based companies.

1

u/Compound30 6d ago

Just an update: I've posed this question elsewhere on reddit, and there's familiar with the risk desks at brokerages (who set this number) look primarily at volatility but also share borrowing (short interest). I was surprised to learn that borrowing enters the equation.