Sep. 6, 2013, 7:28 AM
- Analysts don't think the challenges facing apparel retailers in the U.S. will go away anytime soon.
- Pent-up demand in the housing and auto sector has crowded out consumer spending on clothes to push the sector into a highly-promotional stance heading into the Back to School and holiday seasons.
- While retailers selling appliances (CONN, HD, LOW) are forecast to benefit from the trend, mall-based chains (KSS, BKE, ANF, WTSL, ZUMZ, GPS, URBN, GES, PSUN, ARO, EXPR, AEO, JCP, M, DDS) are on watch.
Sep. 4, 2013, 3:20 PM
- Nabors Industries (NBR +1.5%) plans to offer senior unsecured notes maturing in 2016 and 2023 as it raises funds to repurchase $1.3B of other debt.
- NBR says proceeds, along with cash on hand and borrowings from its revolving credit facility, will be used for its tender offer for any and all of the 9.25% senior notes.
- Companies are rushing to fit in as many bond sales as possible in the days ahead of Friday’s release of monthly payrolls data; Starbucks (SBUX), Home Depot (HD), Caterpillar (CAT) and Unilever (UL) have tapped the market for a combined $10B worth of new securities, plus another $5B in debt offerings from companies such as Lowe's (LOW) and NBR.
Sep. 3, 2013, 3:47 PM
- Home Depot (HD -0.5%) files a registration statement with the SEC to sell short-term and long-term bonds.
- The deals look timed to beat Verizon to the market as the tech firm raises funds for the purchase of Verizon Wireless.
- Chatter on Wall Street is that the home improvement giant is looking to offer up to $3.25B in bonds.
- SEC Form 424B
Aug. 30, 2013, 11:03 AM
- The Q2 results of Sears Hometown and Outlet Stores (SHOS -16.2%) weren't very impressive after Home Depot (HD -0.7%) and Lowe's (LOW -1.1%) showed considerable strength during an overlapping period. Though the mix of electronics at Sears Hometown dragged down results, some market share appears to have been lost as well in hardware and lawn/garden.
- The company says it will focus on higher-margin appliance items in the back half of the year, a strategy that's been paying for retailers such as Conn's and Best Buy.
Aug. 28, 2013, 10:50 AM
- Retail traffic to U.S. stores has declined in 8 out of the last 10 weeks, according to data compiled from ShopperTrak.
- Though a few on-trend firms such as Michael Kors (KORS +0.1%) and Express (EXPR +8.5%) are still firing on all cylinders, and a heat wave in the Midwest has had an effect, the overall trend for the back-to-school season and holiday season looks weak.
- Analysts also think consumers are likely to pick up their reliance on deals as discretionary spending on housing and automobiles "crowds out" normal outlays.
- Related ETFs: XRT, RTH, PMR, RETL.
- Related stocks: APP, AEO, ANF, AZO, BBBY, BBY, BJ, CHS, COH, COST, DG, FDO, FL, GPS, HD, JCP, JNY, JWN, KSS, LTD, LULU, M, NDN, ODP, ORLY, PIR, RGS, RL, SKS, SPLS, TGT, TIF, TJX, UA, UNFI, URBN, VFC, WMT, WRC, ZLC.
Aug. 26, 2013, 10:46 AM
- A consumer paradigm shift toward "things that last" could disrupt the critical holiday shopping season, according to retail analysts.
- After a Q2 which saw Home Depot (HD), Lowe's (LOW), Best Buy (BBY), hhgregg (HGG), and Conn's (CONN) report solid sales for appliances, a fresh forecast from IBM sees much of the same for H2 with discretionary spending tightening for apparel and incidentals.
- Looking for the trend to end: AEO, ANF, ARO, BBBY, BBY, BJ, CHS, COH, COST, DG, DLTR, GPS, JCP, JWN, KSS, LTD, M, NDN, NKE, PIR, PLCE, RL, RSH, SKS, SPLS, TGT, TIF, TJX, URBN, WMT, WSM, BKE, PSUN, ZUMZ, EXPR
Aug. 22, 2013, 4:37 PM
- Home Depot, Inc. (HD) declares $0.39/share quarterly dividend, in line with previous.
- Forward yield 2.11%
- Payable Sept. 19; for shareholders of record Sept. 5; ex-div Sept. 3.
Aug. 21, 2013, 1:40 PM
- Retail is in a state of "bifurcation" as on-trend luxury retailers (KORS, JWN, TIF) and home improvement specialists (HD, LOW) thrive, while heavyweight merchandise retailers (WMT, TGT, COST), mall-based apparel chains (AEO, ARO, LTD), and discounters (DG, DLTR, FDO) disappoint.
- As execs with Target noted during the firm's earnings call this morning, consumers seem more than happy to buy new automobiles and fix up their houses - but have tightened up on toothbrushes, socks, and soap.
- A few companies - through some good luck and solid execution - sit in a consumer demand sweet spot. Ross Stores (RST), TJX Companies (TJX), and Subaru (FUJHY.PK) come to mind.
- Related ETFs: XRT, RTH, PMR, RETL.
Aug. 20, 2013, 2:42 PM| Aug. 20, 2013, 2:42 PM | 1 Comment
Aug. 20, 2013, 7:14 AM
- Home Depot (HD) saw comparable store sales rise 10.7% during Q2 on strong store traffic. Analysts had forecast a gain of 7% to 8%.
- The housing recovery was a major influence, but Home Depot also gained efficiencies at stores. SG&A expenses rose 5.6%, much lower than sales growth.
- The company sees FY13 EPS of $3.60 on 4.5% revenue growth, up from prior guidance of $3.52 and 2.8% growth. (PR)
- HD +4.1%
Aug. 20, 2013, 6:01 AM
- Home Depot (HD): Q2 EPS of $1.24 beats by $0.03.
- Revenue of $22.52B beats by $0.78B. (PR)
Aug. 20, 2013, 12:05 AM
Aug. 19, 2013, 5:30 PM
Aug. 15, 2013, 2:08 PM
- Merrill Lynch analyst Savita Subramanian cut consumer discretionary stocks to Underperform on her view the sector is greatly overvalued. Margins are stretched to the limit and rising interest rates are creating some savers out of spenders, she notes.
- Warnings signs of a cautious stance by U.S. consumers have been popping over the last weeks from teenage retailers to restaurants, but the unexpected strength in the automobile market has largely muted the argument. It took Wal-Mart dipping into negative comp sales growth to swing the pendulum on Wall Street in force.
- Related discretionary stocks: HD, LOW, JCI, CMCSA, MCD, PCLN, TJX, VFC.
- Related ETFs: XLY, VCR, PEZ.
Aug. 10, 2013, 10:00 AM
- Bargain hunting fans of Home Depot (HD) - where a big run has the stock fetching 19x 2014 earnings - might want to consider recently-IPOd HD Supply (HDS), a leading supplier to commercial builders.
- The former HD unit (sold in 2007 to 3 P-E firms) - with 7% market share in a highly fragmented $110B industry - gets 27% of revenue from maintenance products to apartment buildings, hospitals, and the like, 25% of revenue from underground water equipment to municipalities and builders, and 22% of sales from power-transmission gear to utilities.
- The business tends to lag home building by about a year as new neighborhoods create demand for stores and such. Moreover, there's pent up infrastructure demand from recently tight-fisted municipalities. "Home Depot is a few innings into the recovery, but we're just getting started," says HDS CEO Joe DeAngelo.
- Negatives? A mountain of debt for one - $5.7B (down from $7.3B a year ago) is 7x 2013's projected EBITDA, more than double the load of peers. Stiff prepayment penalties mean opportunities to pay it down won't come until 2015. There's also ownership overhang as the P-E firms will eventually want to sell their stakes. The $1.05B raised in the late-June IPO went to pay off debt - none of the P-E investors cashed in.
Jul. 19, 2013, 8:31 AM
Jefferies hikes its price target on a "transitioning" Best Buy (BBY) from $31 to $35 representing a 21% upside from Thursday's close as analyst Daniel Binder weighs in on the Q2 outlook for retailers following perceived "strength on pent-up demand" in May and early June. Binder says HD and LOW "look strongest" while KSS and DLTR "could get to the high end of plan [and] WMT should show improvement in food."| Jul. 19, 2013, 8:31 AM