Our Healthy Growth component analyzes long-term sales growth, adjusted for volatility, cannibalization and recent sales momentum, and takes into account operating profitability.

For each retailer, the Healthy Growth component starts with the five-year cumulative annual sales growth rate. We review all sales, not just comp store sales, and look back five years so as to smooth out macroeconomic drivers, extraordinary events, one-time performance outliers, etc.

While the five-year CAGR is the dominant variable of the RHR healthy growth component, we adjust each company's historical sales growth to account for: (i) volatility in growth rate, (ii) cannibalization and (iii) sales momentum. The result is then further adjusted to reflect operating profitability.