Valuing The Carter's Growth Story
Sat, May 14, 11:01 AM
- The retail sector stays in focus next week with Target (NYSE:TGT), Wal-Mart (NYSE:WMT), TJX Companies (NYSE:TJX), and Ross Stores (NASDAQ:ROST) all due to report on Q1 earnings to follow on a week of dismal reports and guidance from the department store sector (Nordstrom, L Brands, Macy's, Kohl's). Home improvement chains Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) are also due to spill numbers.
- The story from the Commerce Department's April read of retail sales (+3.0% Y/Y, +1.3% M/M) is one of a consumer spending on housing, entertainment, and personal care/fitness over apparel and general merchandise. The 10% Y/Y gain in the nonstore retailer category also tipped that the Amazon (NASDAQ:AMZN) Effect is magnifying.
- Amplify ETFs CEO Christian Magoon tells Seeking Alpha that the traditional retail model appears to be broken. Amplify's Online Retail ETF (NASDAQ:IBUY) is a bet on companies such as Netflix (NASDAQ:NFLX), GrubHub (NYSE:GRUB), Blue Nile (NASDAQ:NILE), and Shopify (NYSE:SHOP) that are reeling in millennial dollars.
- Magoon on retail: "Traditional retailers face the headwinds of higher cost structures including the very real threat of increasing wages in the form of the $15 minimum wage campaign. Less flexible with inventory management, they also are more vulnerable to issues like weather and changing consumer preferences."
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE.
- Apparel stocks: KATE, ANN, LULU, PVH, VNCE, CRI, UA, HBI, VFC, COLM, GIL, SQBG, JCP, KSS, DDS, M, JWN, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, GIII, SQBG, HBI, VRA, ICON, SHOO, PERY, DXLG, BONT, GES, URBN, RL,GIL, NKE, OXM, HBI, VNCE, PERY, ICON, FL.
Wed, May 11, 4:58 PM
Thu, Apr. 28, 6:24 AM
Wed, Apr. 27, 5:30 PM
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Fri, Apr. 15, 9:16 AM
- American Eagle Outfitters (NYSE:AEO) announces that it ended the practice of "on-call" shifts.
- The company says the new policy is being reinforced across the American Eagle store fleet.
- The use of on-call shifts in the retail sector continues to generate significant negative publicity for many chains, and has the Illinois Attorney General along with counterparts in other states asking questions.
- Other companies which are under on-call scrutiny include Carter's (NYSE:CRI), Aeropostale (NYSE:ARO), Coach (NYSE:COH), David's Tea (NASDAQ:DTEA), Justice (NASDAQ:ASNA), Tilly's (NYSE:TLYS), and Uniqlo (OTCPK:FRCOY).
- Now read Should You Buy Retail ETFs Despite Soft Sales?
Fri, Apr. 8, 10:17 AM
- Apparel stocks are getting hammered after Gap's latest monthly sales dud creates a new ripple of worry.
- There's a little bit of a failed feedback loop going on in the sector as teenagers/young adults skip mall visits to spend on other categories while sellers try to innovate their way out of the box. That innovation is leading to excess inventory which in turn leads to more painful discounting
- Decliners include Lululemon (LULU -1.7%), Kate Spade (KATE -1.4%), Deckers Outdoor (DECK -2.5%), Coach (COH -1.6%), Michael Kors (KORS -2.1%), Columbia Sportswear (COLM -1.8%), Carter's (CRI -1.8%), Hanesbrands (HBI -1.3%), Ascena Retail (ASNA -3.9%), Nordstrom (JWN -3.4%), Chico's FAS (CHS -4.2%), Abercrombie & Fitch (ANF -4%), Urban Outfitters (URBN -2.6%), L Brands (LB -3%), Express (EXPR -2.4%), Guess (GES -2.9%), Tailored Brands (TLRD -1.9%) and Zumiez (ZUMZ -2.8%).
- Now read Sell Your Apparel Stocks
Thu, Feb. 25, 10:05 AM
- Carter's (CRI +11.9%) rallies after posting a strong earnings beat.
- The company's operating income rate improved 30 bps during the quarter on some sales leverage (+5% Q4 growth on an aligned basis).
- Looking ahead, Carter's sees FY16 sales growth of 6% to 7%.
- Previously: Carter's beats by $0.11, beats on revenue (Feb. 25 2016)
Thu, Feb. 25, 6:19 AM
Wed, Feb. 24, 5:30 PM
- AAON, ACIW, AG, ALKS, AMCX, AMRN, AMWD, ANSS, APA, APLP, AROC, BBY, BUD, CCOI, CHS, CLDX, CM, CNSL, CORE, CPB, CPK, CRI, CVC, DPZ, EGRX, EME, EMES, ENOC, FCH, FCN, FIG, GLOG, GOGO, GTLS, GVA, HBM, HEES, HMHC, HTWR, INCR, IONS, IRDM, IRM, ITC, KERX, KOP, KSS, LKQ, MITL, NEWM, NPO, [[NTi]], NXST, PCRX, PDCO, PF, PGTI, PRIM, PWR, RDUS, RGEN, RRD, RWLK, SAFM, SDRL, SEAS, SERV, SFM, SFUN, SHLD, SPAR, STWD, TD, TFX, TREE, TWI, UNT, UTHR, VAC, VC, VWR, W, WIN, WNR, WNRL, WPC, XCRA, ZBRA, ZEUS
Fri, Feb. 19, 11:53 AM
- The apparel sector is on shaky ground after weak earnings reports from VF Corp. and Nordstrom set the tone.
- Weather and F/X dinged VF Corp. more than expected, while Nordstrom was whacked by promotions and a higher mix of e-commerce.
- Notable decliners include Carter's (CRI -3.9%), PVh Corp. (PVH -2.7%), Kate Spade (KATE -2.8%), Gildan Activewear (GIL -2.1%), Hanesbrands (HBI -3.5%), Gap (GPS -1.1%), Lululemon (LULU -1.1%), Urban Outfitters (URBN -2%), Genesco (GCO -2%), and Sequential Brands Group (SQBG -1.1%).
Thu, Feb. 4, 11:23 AM
- The retail sector is struggling after Kohl's issues soft guidance and with several reports from store chains (Cato, Zumiez, Fred's) tipping weak January traffic.
- Department store decliners include J.C. Penney (JCP -3.1%), Macy's (M -2.7%), Nordstrom (JWN -5.6%), and Dillard's (DDS -1.3%). While mall names Gap (GPS -1.4%), American Eagle Outfitters (AEO -1.6%), Abercrombie & Fitch (ANF -2.2%), Children's Place (PLCE -3.1%), and Carter's (CRI -1.9%) are also weak compared to the broad market.
- Target (TGT -3%), Costco (COST -2.8%), and Wal-Mart (WMT -1%) are also lower. Earlier today. Costco reported a +1% comp in the U.S. for January.
- Discount-leaning Fred's (FRED -8.7%), Dollar Tree (DLTR -3.1%), Dollar General (DG -1.6%), Big Lots (BIG -3%), Five Below (FIVE -2.9%), TJX Companies (TJX -2.2%), and Ross Stores (ROST -1.2%) are also feeling a pinch.
Mon, Jan. 4, 7:44 AM
Dec. 16, 2015, 10:15 AM
- Apparel prices were lower in November almost across the board, except when it came to clothes for young kids.
- Baby and toddler apparel prices rose 4.9% Y/Y in November on an adjusted basis and were up 1% from October.
- Stronger pricing could help Carter's (CRI +0.8%) and The Children's Place (PLCE +0.3%) if it sustains.
- BLS CPI data
Dec. 9, 2015, 9:06 AM
- The extended forecast from the National Weather Service for the U.S. shows the warm weather trend continuing for a large portion of the nation.
- The warm snap already impacted some categories in the retail sector around the Black Friday to Cyber Monday period, but now threatens to dampen or push out later on the calendar sales for certain items.
- The weather excuse is a frequent topic on Q4 earnings conference calls.
- The flip side of the U.S. weather issue is the performance of FedEx (NYSE:FDX) and UPS (NYSE:UPS). The shippers benefit on the expense side from calm weather in high population areas during the holiday period.
- Snow cover map of the U.S.
- Weather-watching: DKS, ACAT, HIBB, DKS, CRI, DECK, LE, COLM, ARO, AEO, ANF, TGT, UA, FL, FINL.
Nov. 24, 2015, 10:37 AM
- Cold weather apparel sellers finally received a bit of good news when Redbook cited seasonal items helped move along overall chain store sales last week.
- The sector is looking to play catch-up after October saw warmer-than-normal temperatures across a majority of the U.S.
- Looking for a cold snap: Dick's Sporting Goods (NYSE:DKS), Columbia Sportswear (NASDAQ:COLM), Lands' End (NASDAQ:LE), Hibbett Sports (NASDAQ:HIBB), Under Armour (NYSE:UA), Nike (NYSE:NKE), Carter's (NYSE:CRI), Finish Line (NASDAQ:FINL), Deckers Outdoor (NYSE:DECK).
- Previously: Redbook Chain Store Sales (Nov. 24 2015)
Nov. 12, 2015, 4:47 PM
- Carter's (NYSE:CRI) declares $0.22/share quarterly dividend, in line with previous.
- Forward yield 1.02%
- Payable Dec. 4; for shareholders of record Nov. 23; ex-div Nov. 19.
Carter's, Inc. is a provider of apparel and related products exclusively for babies and young children. The company owns the Carter's and OshKosh B'gosh brands. The Carter's brand designs, sources and markets a broad array of products, primarily for sizes newborn to eight. The Carter's brand is... More
Sector: Consumer Goods
Industry: Textile - Apparel Clothing
Country: United States
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