Thu, Sep. 17, 7:30 AM
- MKM Partners upgrades TJX Companies (NYSE:TJX) to a Buy rating after having the retailer set at Neutral.
- Gap (NYSE:GPS) and L Brands (NYSE:LB) were started off by MKM with Buy ratings.
- The investment firm initiated coverage on Express (NYSE:EXPR) and Chico's FAS (NYSE:CHS) at Neutral.
- On a broad scale, U.S. retail sales have held steady over the last six months with no slips into negative territory.
Fri, Sep. 11, 2:31 PM
Fri, Sep. 4, 10:11 AM
- L Brands (LB +0.1%) rode a strong month for Victoria's Secret to a rousing 6% comp in August which easily topped the 2% decline at Gap (GPS -2.2%). Gap execs pointed to the late Labor Day weekend as a factor in the tail-off, although L Brands said the magnitude of the calendar effect was only one or two percentage points.
- On a pre-recorded sales call, L Brands CIO Amy Preston noted sales gains were paced by bras and the Pink brand. She said the company expects another positive comp for September.
- Retail analysts have noted that L Brands has put out a strong back-to-school assortment.
Thu, Sep. 3, 7:08 AM
Wed, Aug. 26, 8:53 PM
- Gap (NYSE:GPS) says it is ending a controversial scheduling practice that changed workers’ schedules with little notice, and now plans to give workers at least 10 days notice as part of a push to improve work-life balance.
- The move follows an inquiry by the New York state attorney general's office into the legality of on-call shifts at 13 retailers, including Gap, Target (NYSE:TGT), JC Penney (NYSE:JCP),Abercrombie & Fitch (NYSE:ANF) and TJX Cos. (NYSE:TJX)
- GPS says its five brands - Athleta, Banana Republic, Gap, Intermix and Old Navy - will stop on-call scheduling by the beginning of next year.
- ANF said earlier this month that it would end the practice for all workers paid by the hour, while lingerie retailer L Brands' Victoria's Secret (NYSE:LB) said in June it would end on-call shifts for workers.
Wed, Aug. 19, 5:37 PM
Wed, Aug. 19, 5:32 PM
- L Brands (NYSE:LB) raises full-year EPS guidance to $3.58-$3.73 vs. $3.50-$3.70 prior and $3.73 consensus.
- Q3 EPS guidance is set at $0.40-$0.45 vs. $0.47 consensus.
- General expenses including store operating costs at L Brands have been growing slightly faster than some estimates.
- Previously: L Brands EPS in-line, misses on revenue (Aug. 19)
- LB -1.08% in after-hours trading.
Wed, Aug. 19, 4:31 PM
Tue, Aug. 18, 5:35 PM
Sat, Aug. 8, 11:02 AM
- Retail sales take center stage next week with a rebound for July expected after the headline number fell in June.
- The consensus estimate is for a 0.5% M/M increase, although some projections range as high as 1%. A reading in negative territory could rattle markets.
- Only handful of retail chains still issue monthly sales reports, but many of those that do reported positive growth for July. Costco (NASDAQ:COST), Fred's (NASDAQ:FRED), L Brands (NYSE:LB), Stein Mart (NASDAQ:SMRT), and Rite Aid (NYSE:RAD) all showed pockets of strength. Mall retailers Cato (NYSE:CATO), Zumiez (NASDAQ:ZUMZ), and Buckle (NYSE:BKE) were disappointments. Full Thomson/Reuters analysis (.pdf)
- Two new factors emerged last week which could impact the U.S. retail sales print: (1) U.S. auto sales topped estimates for July; (2) several retailers warned later sales tax holidays in key states pushed back-to-school spending into August from July.
- There's also the question if Wal-Mart's (NYSE:WMT) Amazon Prime Day counterpunch stoked extra sales. The Bentonville giant and Amazon (NASDAQ:AMZN) both reported strong responses.
- On a broader scale, the retail sales report will factor into forecasts on when the Federal Reserve will lift interest rates.
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Fri, Aug. 7, 12:01 PM
Thu, Aug. 6, 7:23 AM
Mon, Jul. 20, 1:38 PM
- A bold forecast from Cowen Research on Amazon has some deep implications for the broad retail sector if it proves accurate.
- Cowen sees Amazon nabbing 14% of the U.S. apparel and accessories market by 2020, up from ~5% this year.
- The Amazon Effect impacts retail companies differently depending on if they sell their brands on the Amazon website and at what prices. Chains that could see an impact from a higher level of apparel buying through Amazon include Macy's (NYSE:M), Dillard's (NYSE:DDS), J.C. Penney (NYSE:JCP), Aeropostale (NYSE:ARO), Abercrombie & Fitch (NYSE:ANF), L Brands (NYSE:LB), Kohl's (NYSE:KSS), Pacific Sunwear (NASDAQ:PSUN), and Zumiez (NASDAQ:ZUMZ). The trend also puts high-end sellers such as Kate Spade (NYSE:KATE) and Michael Kors (NYSE:KORS) in a tighter box on how to sell through Amazon.
- A disturbing trend for Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) is that a higher percentage of their customers also bought apparel through Amazon in the first half of 2015.
Tue, Jul. 14, 1:39 PM
- The question of when millennials will open up their checkbooks and stop sharing is posed by Bobbi Rebell in a Reuters piece.
- The generation seems to unabashedly share houses (AirBnb), cars (Uber), car rentals (Zipcar), and entertainment services (Netflix).
- Some think millennials aren't wired to covet non-electronics possessions, while others attribute the trend to a tight market for recent college graduates with high student loan balances.
- The authors of Millennial Majority argues the latter in making the case spending by millennials will pick up dramatically as their resources improve.
- One sector desperately looking for a millennial bounce is apparel which continues to trail broad retail. Companies such as Gap (NYSE:GPS), L Brands (NYSE:LB), Abercrombie & Fitch (NYSE:ANF), and Ann (NYSE:ANN) have had a few misfires due to the peculiarity of the group.
- The oldest millennials are now in their lower thirties which should mean the question will be answered soon.
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- Previously: Retail sales: No help from department stores (Jul. 14 2015)
- Previously: June Retail Sales miss expectations (Jul. 14 2015)
Tue, Jul. 14, 8:48 AM
- U.S. retail sales were held back in June due in part to weak clothes buying trends.
- Clothing/clothing accessories stores dropped 1.5% M/M, while department store showed a 0.6% decline.
- On a year-over-year scan, department stores sales were off 1.7%.
- The numbers would probably look even weaker if sportswear and shoes were backed out of the broad categories.
- Previously: June Retail Sales miss expectations (Jul. 14 2015)
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Thu, Jul. 9, 11:43 AM
- L Brands (LB -2.2%) saw its Bath & Body Works chain record the strongest comp of its brands at 6%.
- L Brands (3%) and Victoria's Secret (1%) both delivered a positive comp, while VS Direct Sales lagged at -4%.
- On a sales call, L Brands execs noted the company's merchandise margin rose compared to a year ago.
- Inventory per square foot was reported to be down 6% Y/Y.
- Previously: L Brands reports June same-store sales at +3% (Jul. 09 2015)
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