Wed, Feb. 18, 8:23 AM
- Apparel sellers bringing in product from Asia through West Coast ports face a larger risk than other industries from the labor unrest and work slowdown in the region.
- If average delivery times keep stretching out, clothing merchandise could be almost out of the season by the time it hits stores, unlike other industries which can sell the same products all year.
- Marketing campaigns planned months in advance are also at risk of backfiring with the inventory disruption.
- The kicker is that even companies that have found a work-around to get their product in, or don't rely on the West Coast ports, face the risk of increased promotional activity in the sector.
- Previously: West Coast port slowdown continues (Feb. 16 2015)
- Previously: Perry Ellis cuts guidance due to West Coast port disruption, shares -15% AH (Feb. 17 2015)
- 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, RL,GIL, NKE, OXM, HBI, VNCE, PERY, ICON, FL.
Mon, Feb. 16, 11:11 AM
- The confluence of New York Fashion Week and the NBA All-Star game in New York City gave major apparel brands a launching pad to unveil new products and strategies.
- The annual events have seen significant product successes and misfires in the past which have impacted profits in the retail sector.
- Under Armour (NYSE:UA): The company used the weekend to launch its largest global brand campaign ever with the new Curry One basketball show. Actor Jamie Foxx and CEO Kevin Plank worked events all weekend, while Curry aces the 3-point shooting competition at the ASG.
- Banana Republic (NYSE:GPS): Gap promoted a new-look BR line at NY Fashion Week events. Topeka Capital Markets thinks star designer Marissa Webb can recharge some life in the brand which has suffered with the rise of the athleisure category.
- Kate Spade (NYSE:KATE): The retailer's Chief Content Officer is confident that a big bet on tailored flare pants will be on-trend. The strategy runs counter to the popular skinny-leg look.
- DKNY (OTCPK:LVMHF): The fashion house drew high marks on the runway for its updated collection which critics see as selling.
- Tommy Hilfiger (NYSE:PVH): The 30-year old brand displayed its fall lines which include more football and varsity themes. Critics think the grounded approach might broaden the selling demographic.
- Adidas (OTCQX:ADDYY): The German company used the weekend to showcase its new shoe collaboration with Kanye West. Reviews were mixed with Nike and UA grabbing more exposure through their basketball association.
Thu, Jan. 29, 9:12 AM
Thu, Jan. 29, 8:42 AM
- Kate Spade (NYSE:KATE) issues preliminary results for full-year 2014.
- A sales pop of over 40% to $1.13B-$1.14b expected.
- Adjusted EBITDA of $145M-$150M forecast.
- 2015 guidance: Net sales in a range of $1.2B-$1.275B; direct comp sales growth in high single digits; adjusted EBITDA of $185M-$200M.
- Brand reset: The company says it will roll the Kate Spade Saturday brand into Kate Spade New York and give new marching orders to Jack Spade.
- Previously: Kate Spade sets strategy in China
- KATE +7.6% to $32.07 premarket.
Thu, Jan. 29, 8:33 AM
- Kate Spade (NYSE:KATE) strikes a deal with The Lane Crawford Joyce Group to help strengthen the presence of its brand in Greater China.
- The company also acquired a 60% interest in KS China through its partnership with E-Land Fashion for a payment of $36M.
- Through some efforts to consolidate operations in the region, the businesses in the China will be run under Kate Spade China with Walton Brown (The Lane Crawford Joyce Group property) holding an equal partnership interest.
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.
Fri, Jan. 23, 7:37 AM
Wed, Jan. 21, 9:59 AM| Wed, Jan. 21, 9:59 AM | 6 Comments
Fri, Jan. 9, 11:04 AM
- Another tough day for luxury retail stocks as more concerns on pricing trends build up.
- Consulting firm Bain isn't helping sentiment, noting the luxury sector in China showed negative growth (-1%) for the first time in 2014. An ongoing crackdown by Beijing on corruption is in the background.
- Michael Kors (KORS -1.7%), Ralph Lauren (RL -2%), Kate Spade (KATE -3.2%), Fossil (FOSL -1%), Vera Bradley (VRA -2%), and Coach (COH -2.2%) are all under-performing market averages.
- Related stocks: OTCPK:LVMUY, OTC:GUCG, OTCPK:SWGAY, OTCPK:BURBY, EL, RDEN, OTCPK:HESAF, OTCPK:CFRUY, TIF.
- Related ETFs: PEJ.
Thu, Jan. 8, 7:40 AM
- BMO Capital downgrades Kate Spade (NYSE:KATE) to Market Perform from Outperform.
- The investment firm reduces the price target on the retailer to $32 from $48.
- Concerns about promotional activity in the premium department store channel have cropped up this week.
- Previously: Kate Spade taken lower on sector news (Jan. 06 2015)
Tue, Jan. 6, 9:52 AM
- Kate Spade (KATE -3.3%) trades lower on a day with a healthy dose of handbag news.
- Coach made a diversification play with an acquisition of luxury shoe brand Stuart Weitzman.
- The development could position Coach to compete more directly with Kate.
- Also of note for KS investors, a channel check on Michael Kors showed a high level of promotional activity.
Mon, Jan. 5, 7:38 AM
- A slowdown at West Coast ports continues to impact the retail sector as negotiations between dockworkers and shippers progresses slowly.
- Fast-fashion firms (OTCPK:HMRZF, OTCPK:FRCOY, OTCPK:IDEXY) and apparel sellers (LULU, ANN, GPS, KATE, ANF) are most at risk notes, Cowen Research.
- Inventory dislocation in the sector could boost TJX Companies (NYSE:TJX) and Ross Stores (NASDAQ:ROST).
Dec. 23, 2014, 2:59 PM
- The strong reads on consumer spending (ICSC, Redbook) bode well for Q4 earnings in the retail sector, note analysts.
- Electronics sellers (BBY, HGG) and the luxury sector (RL, TIF, COH, KORS, KATE, FOSL, VRA) are viewed as being in a good position to see a December boost.
- Companies which eased off on pulling a bulk of their sales forward with Black Friday/Cyber Monday deals are also seen as potential winners with sub-$2 gas resetting some holiday budgets.
- Though e-commerce is expected to dazzle again this holiday season. It's not all fun and games for analysts looking at margins. The extension by Amazon (AMZN -0.1%) of its free shipping offer could be a signal that inventory levels are higher than anticipated and that the growth-at-all-costs mentality at the company is as entrenched as ever, notes Nasdaq Advisory Services.
- The S&P Retail ETF (NYSEARCA:XRT) has doubled up the return of the S&P 500 over the last 3 months, 10.8% vs. 5.1%.
- Previously: Retail trends to watch: Athleisure, P-E buyouts, and new online channels (Dec. 20 2014)
- Related ETFs: XLP, XLY, VDC,VCR, RTH, RETL, FXG, PBJ, IYK, PEJ, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, PSL, UGE, RCD, PEZ, PSCC, PSCD, SZK
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. 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.
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