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Thu, Feb. 4, 8:09 AM
- L Brands (NYSE:LB) reports comparable-store sales rose 6% in Q4.
- The January comp was -2% due to a timing shift of a Victoria's Secret sale into December this year.
- L Brands now sees Q4 EPS of $2.05 vs. $1.85-$1.95 prior guidance and $1.94 consensus.
- The company approves a new $500M buyback program.
- LB -2.25% premarket to $93.00.
Tue, Jan. 26, 2:52 PM
- Victoria's Secret (NYSE:LB) is being accused in federal court of stealing a push-up bra invention from a designer.
- The lawsuit from apparel shop owner Debra MacKinnon claims she pitched the idea of natural-shaped inserts to Victoria's Secret back in 2008, and took orders from the brand, before VS moved in its own direction by copying and patenting the design.
- MacKinnon has also sued her patent attorney for bungling her own push-up bra patent application.
Sat, Jan. 9, 10:47 AM
- The success of the retail sector during the holiday season came into focus after a number of chains issued their holiday sales reports last week and research firms weighed in with data-driven analysis.
- Lesson #1 - Early and late: 25% of all shoppers purchased a Christmas present before Halloween, while the Black Friday to Cyber Monday period disappointed. A late flurry of shopping was a boon for many large retail chains, as well as Amazon (NASDAQ:AMZN), FedEx (NYSE:FDX), and UPS (NYSE:UPS). Trading around anecdotal reports of Black Friday traffic now looks like an exercise in futility.
- Lesson #2 - Women over men: Sales of women's apparel were strong during the two-month period, up 10%, while demand for men's apparel tailed off significantly. A microcosm of the trend is the +8% comp reported by L Brands (NYSE:LB) - while The Men's Wearhouse (NYSE:MW) is in a -72% 3-month funk. The disastrous performance in the electronics category (BBY, CONN, HGG) reinforces the trend.
- Lesson #3 - The sweet spot of retail was in the middle: Luxury sellers (COH, KORS, RL, TIF) had a weak holiday season as F/X challenges and lackluster Asian tourism factored in, while discounters also were scrambling due to a high level of promotional activity. The $2-gas benefit seemed to help in the middle where Costco (NASDAQ:COST), Target (NYSE:TGT), Ross Stores (NASDAQ:ROST), TJX Companies (NYSE:TJX), and The Children's Place (NASDAQ:PLCE) set up shop.
- Lesson #4 - No slowdown in online : Holiday online sales rose 20% Y/Y. Brands such as Ulta Salon (NASDAQ:ULTA) and Victoria's Secret that sell easily through e-commerce channels are well-positioned to benefit from the trend, although for a large part of the apparel sector the e-commerce mix is a margin cruncher. Just ask Gap (NYSE:GPS), Urban Outfitters (NASDAQ:URBN), and American Eagle Outfitters (NYSE:AEO).
- Sources: Planalytics.com, Chain Store Age, company holiday sales reports
Thu, Jan. 7, 7:21 AM| Thu, Jan. 7, 7:21 AM | 1 Comment
Dec. 29, 2015, 12:11 PM
- A report from MasterCard on a 7.9% increase in holiday spending is creating some optimism that retailers selling in certain categories could surprise with Q4 earnings.
- Double-digit sales gains were recorded for furniture spending (RH, PIR, HVT, BBBY, ETH, HOFT, OTCPK:BEST, W, LZB, OTCPK:LEFUF, BSET, WSM, RH, KIRK) and women's apparel (NWY, LB, ASNA) while the men's apparel and electronics categories were left behind.
- A late sales rush is also usually a positive sign for Signet (NYSE:SIG) and Tiffany (NYSE:TIF).
- Previously: Late rush may have turned holiday season around (Dec. 28)
Dec. 6, 2015, 11:46 AM
- Six stocks in the beat-up apparel store sector trade with a forward price-to-earnings multiple of below 12 after tracking backwards for most of the year.
- While some analysts see value for Urban Outfitters (NASDAQ:URBN), Gap (NYSE:GPS), Buckle (NYSE:BKE), and Stein Mart (NASDAQ:SMRT) at current levels, integration problems and assortment issues are still holding back Ascena Retail Group (NASDAQ:ASNA) and Men's Wearhouse (NYSE:MW).
- An outlier in the apparel store group this year is L Brands (NYSE:LB) which is up 15% YTD with brand loyalty at Pink and Victoria's Secret, along with strong pricing across products, helping it to survive the decline in mall traffic.
Dec. 3, 2015, 7:47 AM
Nov. 25, 2015, 9:26 AM
- The average price for a gallon of gas in the U.S. has now dropped to $2.06 per gallon - a mark that is 27% lower than where gas prices stood heading into the holiday period last year. Despite the extra dollars in the wallets of consumers, most forecasts for holiday retail sales are on the modest side (below 4%).
- The extended period of sub-$3 gas prices in the U.S. hasn't exactly lit consumer spending across broad retail on fire (just ask Wal-Mart) - although it has stoked auto sales for the Detroit Three (GM, F, FCAU). The regional casino sector (ISLE, PENN, BYD, ERI, MTN, MCRI) and cruise line stocks (NCLH, RCL) have also benefited more than major chain stores. Some have suggested that lower gas prices are also an understated driver for Starbucks (NASDAQ:SBUX) and Netflix (NASDAQ:NFLX) which both score high on customer stickiness.
- What next? Seeking Alpha's Stock Pitch Contest on retail is still open until November 30 amid the reset on consumer spending expectations. Current long ideas include PLAY, FRAN, CASY, SKX, WMT, PSUN, HGG, PRTY, TJX, TA, VSTO - while short bets on WMAR, TIF, RT, AMZN, UA, LB, and OUTR are on record.
- Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, IYC, FXD, PEJ, FDIS, RHS, FSTA, SCC, UCC, RCD, PMR, PEZ, UGE, PSL, PSCC, PSCD, SZK, BITE.
Nov. 18, 2015, 4:26 PM
- L Brands (NYSE:LB) raises full-year EPS guidance to $3.69-$3.79 vs. $3.58-$3.73 prior and $3.79 consensus.
- Q4 EPS guidance is set at $1.85-$1.95 vs. $1.98 consensus.
- The company reported 7% comparable-store sales growth for both the Victorias Secret and L Brands businesses during the quarter. Sales totals were already disclosed as part of L Brands' monthly reporting.
- Previously: L Brands beats by $0.03, revenue in-line (Nov. 18 2015)
- LB -1.34% in after-hours trading to $91.00.
Nov. 18, 2015, 4:19 PM
- L Brands (NYSE:LB): Q3 EPS of $0.55 beats by $0.03.
- Revenue of $2.49B (+7.3% Y/Y) in-line.
- Shares +1.9%.
Nov. 17, 2015, 5:35 PM
Nov. 10, 2015, 8:31 PM
- The headaches continue for a large part of the retail sector impacted by a slower pace of sales than anticipated this fall.
- Warmer weather than normal have held back outerwear and winter clothing demand, while mall traffic continues to be underwhelming.
- The high level of unsold inventory on shelves at retail chains is likely to lead to more promotions and discounts heading into the crucial Black Friday period, observes the WSJ. That trend could hurt manufacturers and sellers alike.
- Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, PEJ, FDIS, RCD, PMR, UGE, SZK.
- Related stocks: FL, FINL, KORS, COH, DSW, DKS, SKX, JCP, M, SHLD, KSS, JWN, TJX, ROST, BONT, AEO, ANF, ARO, CAL, CROX, SMRT, BKE, CTRN, GPS, LB, RL, PVH.
Nov. 9, 2015, 10:15 AM
- Department store stocks are off to a rough start with earnings coming into focus this week. Macy's (M -5.5%), J.C. Penney (JCP -4.2%), Kohl's (KSS -4.9%), Dillard's (DDS -3.3%), and Nordstrom (JWN -3.9%) are all sharply lower.
- Retailers Target (TGT -2.7%), Costco (COST -1.5%), TJX Companies (TJX -2.9%), The Children's Place (PLCE -4.8%), L Brands (LB -4.4%), and Wal-Mart (WMT -0.9%) are also below broad market averages with earnings reports due to roll in this week and next.
- The S&P Retail ETF (NYSEARCA:XRT) is down a crisp 2.0%.
Nov. 6, 2015, 8:22 AM
- L Brands (NYSE:LB) declares $0.50/share quarterly dividend, in line with previous.
- Forward yield 2.02%
- Payable Dec. 4; for shareholders of record Nov. 20; ex-div Nov. 18.
Nov. 5, 2015, 8:14 AM
- L Brands (NYSE:LB) reports comparable-store sales increased 5% in October.
- Total sales were up 5% to $735.6M during the month.
- YTD comparable-store sales through October 31 are up 5%.
- YTD total sales are up 5% to $7.759B.
- The company expects Q3 EPS of $0.51 to $0.53 vs. prior guidance of $0.40 to $0.44 and 40.51 consensus.
Nov. 2, 2015, 6:14 PM
- L Brands' (NYSE:LB) October same-store sales are expected to be up 5% Y/Y, with Victoria's Secret and Bath & Body Works comps each rising 5%. Total Victoria's Secret Direct sales (not included in the same-store figure) are expected to be up 7%.
- The company now expects Q3 EPS of $0.51-$0.53, above prior guidance of $0.40-$0.45 and a $0.48 consensus. Q3 results arrive on Nov. 18.
- LB +1.4% after hours to $97.76. The 52-week high is $97.93.
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