According to Wells Fargo, Chinese shoppers may be ready to hit the streets again during the country’s reopening, a positive wind for certain retail stocks. Analyst Ike Boruchow wrote in a report on Thursday: “With the Lunar New Year kicking off on January 21, we believe reopening compared to many easier comparative quarters in the region will benefits the companies with the greatest exposure.” He added that most companies in the company’s retail sector have seen sales drop between 20% and 40% in the past nine months. The companies with the greatest influence on China’s reopening are Nike, Farfetch, Canada Goose, Tapestry, the parent company of Kate Spade, and Capri Holdings, owner of Michael Kors. All of these retailers have estimated their exposure to China ranging from 12% to almost 20%. Of these names, two – Canada Goose and Farfetch – are trading at a deep discount to historical multiples, meaning now could be a good time to buy shares. Wells Fargo has overweight ratings on both. The company is profitable on Canada’s highly profitable direct-to-consumer channel Goose, which it thinks could turn a profit this year after a period of productivity slowdown. “While we [near-term] “We see the brand well positioned to turn a profit taking advantage of China’s larger infrastructure,” said Boruchow, adding that Canada Goose has at least tripled its volume. stores in China over the past few years.For Farfetch, Wells Fargo sees a few tough quarters ahead but also has some positive catalysts, including the reopening of China. [we] continues to see significant upside from here,” Boruchow said.