Tue, Jan. 27, 3:42 PM
- Apparel retailers and manufacturers could see lower costs this year as a strong dollar goes a long way toward lowering manufacturing and purchasing expenses overseas.
- Companies which manufacture overseas or buy from global suppliers to sell largely in the U.S. are in the best position to boost their bottom lines.
- Cotton prices have also moved in the right direction for the sector.
- Another factor is the much cleaner inventory position many apparel retailers and department store chains find themselves in heading into the spring selling season.
- 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, BWS, PERY, DXLG, BONT, GES, URBN.
Thu, Jan. 15, 8:42 AM
- The exit by Target from Canada will be a hot topic in the C-suite at Nordstrom (NYSE:JWN).
- The department store chain opened its first store in Canada this year and plans a slow roll-out of more outlets.
- Target couldn't find a way to turn a profit before 2021 which could throw a scare into Nordstrom.
Fri, Jan. 9, 7:58 AM
- Macy's (NYSE:M) will form a team to explore starting an off-price business.
- An entry by the department store chain into the segment could be a disrupter due to Macy's scale and reach.
- Companies with an eye on the development include TJX Companies (NYSE:TJX), Nordstrom (NYSE:JWN), and Ross Stores (NASDAQ:ROST).
- Previously: Macy's to restructure; holiday comp +2.7% (Jan. 08 2015)
- M -2.7% premarket.
Wed, Jan. 7, 9:48 AM
- Department store stocks are getting a good lift from the J.C. Penney holiday sales report.
- Advancers: Macy's (NYSE:M) +2.5%, Nordstrom (NYSE:JWN) +2.5%, Sears Holdings (NASDAQ:SHLD) +2.5%, Kohl's (NYSE:KSS) +3.0%, Dillard's (NYSE:DDS) +2.5%, Bon-Ton Stores (NASDAQ:BONT) +1.6%.
- Previously: Sonic and J.C. Penney add to $2-gas lift in retail theory
Tue, Jan. 6, 8:30 PM
- Shares of J.C. Penney (NYSE:JCP) reached as high as $7.90 in AH trading after the company topped the holiday same-store sales estimates of analysts.
- The stock hasn't traded over $8 since early December as short interest built up ahead of the holiday report.
- Per the norm, bulls and bears are battling it out on JCP. Bulls are lauding management for turning the retailer solidly in the right direction, while bears such as Imperial Capital's Mary Ross Gilbert claim margin-crunching promotions drove the sales gain.
- What to watch: JCP's free cash flow mark at the end of Q4 will be closely-analyzed.
- Sector fallout: Belus Capital's Brian Sozzi thinks the JCP result indicates other department store chains (JWN, KSS, DDS, M) are also poised to best consensus holiday SSS estimates.
- Previous on JCP: Sterne Agee warns, holiday sales report.
Dec. 31, 2014, 9:43 AM
- The push by large-format stores to downsize gives growing retail chains an easy path to accelerate growth.
- ICSC notes the trend of real estate managers such as DDR Corporation (NYSE:DDR) to remerchandise high-quality space before lease expiration could increase even more in 2015.
- What to watch: Nordstrom Rack (NYSE:JWN), Trader Joe's, Sprouts Farmers Market (NASDAQ:SFM) Dick's Sporting Goods (NYSE:DKS), and Whole Foods Market (NASDAQ:WFM) are expected to continue utilizing sub-leases or reworked leases to add outlets. Fast-fashion retailers Hennes & Mauritz (OTCPK:HMRZF), Fast Retailing (OTCPK:FRCOY), and Inditex (OTCPK:IDEXY) might also take advantage of the trend as they look to increase their brick-and-mortar U.S. presence.
- Previously: Big box retailers expected to follow sub-leasing strategy (Dec. 30 2014)
Dec. 18, 2014, 7:01 AM
- Apparel prices fell 1.1% in the U.S. during November, according to yesterday's CPI report.
- The drop followed a 0.2% slide in apparel prices for October.
- Retail analysts note that a higher mix of e-commerce sales and the lingering promotional haze threaten margin expansion in the sector, despite overall tighter inventory control.
- Apparel stocks: KATE, ANN, LULU, PVH, VNCE, CRI, UA, HBI, VFC, COLM, GIL, SQBG, JCP, KSS, DDS, M, JWN, RL, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, KORS, UA, GIII, SQBG, HBI, SKX, FL, VRA, ICON, NKE, WWW, DECK, CROX, SHOO, BWS, PERY, DXLG, SHLD, BONT, GPS, GES, URBN.
Dec. 12, 2014, 10:17 AM
- The S&P Retail ETF (XRT +0.5%) is out ahead of market averages again on enthusiasm over consumer spending forecasts.
- Today it's apparel/footwear sellers and department store chains with the broad set of gains.
- Gainers: Lululemon (NASDAQ:LULU) +2.7%, Ralph Lauren (NYSE:RL) +1.0%, Under Armour (NYSE:UA) +1.1%, Sequential Brands (NASDAQ:SQBG) +0.7%, Michael Kors (NYSE:KORS) +0.5%, Coach (NYSE:COH) +2.3%, Nike (NYSE:NKE) +0.7%, Deckers Outdoor (NYSE:DECK) +1.1%, Macy's (NYSE:M) +2.4%, Sears Holdings (NASDAQ:SHLD) +1.7%, J.C. Penney (NYSE:JCP) +1.5%, Nordstrom (NYSE:JWN) +0.8%.
Dec. 11, 2014, 9:30 AM
- Retail sales struck their biggest gain since March on broad strength.
- What's working: Strong growth was seen in auto parts (PBY, ORLY, AZO, AAP, MNRO) with the broad parts category showing year-over-year sale growth of over 8% in November. Sales were up 6.8% Y/Y for health and personal care stores (ULTA, SBH, CVS, WAG, RAD) during the month.
- What's not working: Department stores (DDS, M, SSI, BONT, SHLD, JCP, KSS, JWN) went backwards with sales off 1.1% from a year ago. No surprise, but sales at gas stations (CASY, KR, PTRY) also fell off from a year ago.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, UCC, PMR, UGE, RCD, SZK.
Dec. 4, 2014, 10:31 AM
- Shares of Destination Maternity (DEST -7.8%) slide after the company misses earnings estimates.
- A frank assessment from the company on a misfire with its assortment to millennial-aged moms-to-be strikes a bit of a chord across the apparel and department store sector.
- Many of the earnings hits and misses this quarter have been tied to on-trend or off-trend assortments. A millennial group which is hard to nail down is becoming a bigger part of that puzzle.
- Apparel stocks: KATE, ANN, LULU, RL, PVH, VNCE, CRI, UA, HBI, VFC, COLM, KORS, GIL, SQBG, JCP, KSS, DDS, M, JWN, RL, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, KORS, UA, GIII, SQBG, HBI, SKX, FL, VRA, ICON, NKE, WWW, DECK, CROX, SHOO, BWS, PERY, DXLG, SHLD, BONT, GPS, GES, URBN, TJX.
Dec. 1, 2014, 7:50 AM
- Comscore estimates e-commerce spending rose 32% on Thanksgiving Day to $1.01B and 26% on Black Friday to $1.51B.
- Most retail analysts are sticking with their forecast for 4.0%-4.5% growth for holiday sales this year, with early shopping and e-commerce making up for a dip in store traffic on Black Friday.
- Apparel sellers in particular came out with a stronger online push this year.
- Related stocks: OTCPK:AMZZ, EBAY, AEO, ANF, JCP, JNY, JWN, KSS, LB, M, URBN, PSUN, BKE, WTSL, GPS, FDX, UPS, DKS, BBY, LULU, KATE, VRA, SPLS.
Nov. 19, 2014, 4:28 PM
Nov. 18, 2014, 10:18 AM
- Piper Jaffray comes up with an eclectic mix as part of its five best retail stock picks for the holiday season.
- Best Buy (NYSE:BBY): A strong electronics lineup this year bodes well for Best Buy. Ultra HD 4K TVs, iPhone 6s, and GoPro products top many wish lists.
- Coty (NYSE:COTY): A focus on color cosmetics sets up Coty for market share gains this holiday season.
- Del Frisco's Restaurant Group (NASDAQ:DFRG): A bounce in consumer and business expense spending should help this high-end dining name, says Piper.
- Michael Kors (NYSE:KORS): The MK brand is as hot as ever. Consumers in a survey by Piper ranked it as the top fashion brand.
- Nordstrom (NYSE:JWN): The department store operator's best in-class e-commerce operation stands out.
Nov. 14, 2014, 9:15 AM
Nov. 13, 2014, 4:33 PM
- Q3 earnings of $142M or $0.73 per share vs. $137M and $0.69 one year ago.
- Total comp sales growth of 3.9%; Nordstrom (NYSE:JWN) comp sales growth of 3.4%.
- Full-year EPS outlook lowered to $3.70-$3.75 from $3.80-$3.90, with part of that due to the Trunk Club acquisition that's expected to cut EPS by about 3% this fiscal year. The net sales outlook is expected to be at the top end of the previously guided 6.5-7.5% range. Comp sales are expected right in the middle of the earlier 3-4% range.
- Conference call at 4:45 ET
- Previously: Nordstrom beats by $0.02, beats on revenue
- Shares +2.3% after-hours
Nov. 13, 2014, 4:08 PM
JWN vs. ETF Alternatives
Nordstrom, Inc operates as a fashion specialty retailer, with 262 U.S. stores located in 35 states as well as a robust e-commerce business through Nordstrom.com and HauteLook. It has two reportable segments: Retail and Credit.
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