• Thu, Jan. 12, 8:04 AM
    • Wells Fargo walks away from the ICR Conference with the view that the retail sector is close to "uninvestable" in the near term.
    • The investment firm notes the 2016 holiday season was set up for solid numbers off of favorable weather patterns and easy comparisions to 2015.
    • The two-week long of guidance cuts across the sector has ended that vision.
    • Lululemon (NASDAQ:LULU), TJX Companies (NYSE:TJX), Ross Stores (NASDAQ:ROST), Burlington Stores (NYSE:BURL) and Ulta Salon (NASDAQ:ULTA) are singled out as the only names coming out of ICR with some optimism.
    • Estimates are cut by WF on SIG, URBN, LB, BOOT and SHOO.
    • Source: Bloomberg
    • Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, CNDF, FTXD, JHMC.
    Thu, Jan. 12, 8:04 AM | 20 Comments
  • Sat, Jan. 7, 11:08 AM
    Sat, Jan. 7, 11:08 AM
  • Thu, Jan. 5, 10:22 AM
    • A barrage of disappointing sales reports and guidance cuts from retailers is roiling the broad sector.
    • The department store sector is ground zero for the damage. Kohl's (KSS -18.1%), Macy's (M -14.5%), Nordstrom (JWN -8.9%), Dillard's (DDS -9.3%) and J.C. Penney (JCP -7.3%) are all down sharply.
    • Chains also bleeding include Cato (CATO -9.6%), Tailored Brands (TLRD -6.3%), L Brands (LB -7.5%), Ascena Retail (ASNA -5.7%), Francesca's (FRAN -6.5%), Stein Mart (SMRT -4.7%), Stage Stores (SSI -5.8%), Urban Outiffters (URBN -4.4%), DSW (DSW -3.8%), Express (EXPR -3.8%), Citi Trends (CTRN -4.3%).
    • Apparel makers Fossil (FOSL -6.5%), G-III Apparel (GIII -6.6%), Sequential Brands Group (SQBG -5.5%), Vera Bradley (VRA -4.2%) and Coach (COH -2.5%) are also getting punished.
    • If there's one warning to encapsulate the retail weakness it came from L Brands which cited an alarming drop in merchandise margins. It's hard to believe that Amazon (NASDAQ:AMZN) didn't have something to do with that development. By the way, Amazon is up 2.06% on the day.
    Thu, Jan. 5, 10:22 AM | 59 Comments
  • Thu, Jan. 5, 7:55 AM
    • L Brands (NYSE:LB) reports sales increased 1% during December to $2.415B.
    • Comparable sales trailed off 1% during the period vs. +1.5% expected, dragged down by a 4% comp decline at Victoria's Secret.
    • L Brands now expects Q4 EPS to fall in the low end of its $1.85 to $2.00 range. On a prerecorded call (available at 1-866-639-7583), L Brands management warned of a steep drop in merchandise margin rates and said January comparable sales are trending flat.
    • Previously: Retail sector on watch for preannouncements (Jan. 3)
    • LB -4.96% premarket to $64.00.
    Thu, Jan. 5, 7:55 AM | 9 Comments
  • Tue, Jan. 3, 9:42 AM
    • Wolfe Research expects earnings preannouncements from American Eagle Outfitters (AEO +1.6%), Express (EXPR +2.2%), L Brands (LB), The Children's Place (PLCE) and Urban Outfitters (URBN +0.8%).
    • Last quarter in the retail sector, there were more surprise preannouncements to the negative side than guidance boosts.
    • Previously: Five retail stocks that may preannounce in Jan. - GS (Jan. 2)
    Tue, Jan. 3, 9:42 AM
  • Dec. 30, 2016, 7:11 AM
    • As a sector, healthcare stocks led the stinkers, taking up 11 of the top 25 spots among S&P 500 stocks with the worst YTD performance going into 2016's final day of trading.
    • Endo International plc (NASDAQ:ENDP) -74.39%
    • First Solar, Inc. (NASDAQ:FSLR) -50.64%
    • TripAdvisor, Inc. (NASDAQ:TRIP) -44.93%
    • Perrigo Company plc (NASDAQ:PRGO) -42.78%
    • Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) -40.84%
    • Under Armour, Inc. (NYSE:UA) -37.68%
    • Stericycle, Inc. (NASDAQ:SRCL) -36.27%
    • Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) -35.19%
    • Allergan plc (NYSE:AGN) -33.69%
    • Mallinckrodt Public Limited Company (NYSE:MNK) -33.66%
    • Illumina, Inc. (NASDAQ:ILMN) -32.94%
    • Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) -31.16%
    • Mylan N.V. (NASDAQ:MYL) -30.87%
    • Fossil Group, Inc. (NASDAQ:FOSL) -29.54%
    • H&R Block, Inc. (NYSE:HRB) -27.70%
    • McKesson Corporation (NYSE:MCK) -27.62%
    • Gilead Sciences Inc. (NASDAQ:GILD) -27.07%
    • L Brands, Inc. (NYSE:LB) -26.73%
    • Hanesbrands Inc. (NYSE:HBI) -25.17%
    • Signet Jewelers Limited (NYSE:SIG) -23.26%
    • Pitney Bowes Inc. (NYSE:PBI) -22.35%
    • AmerisourceBergen Corporation (NYSE:ABC) -22.19%
    • Legg Mason, Inc. (NYSE:LM) -22.09%
    • Chipotle Mexican Grill, Inc. (NYSE:CMG) -21.52%
    • Frontier Communications Corporation (NYSE:FTR) -21.04%
    Dec. 30, 2016, 7:11 AM | 87 Comments
  • Dec. 21, 2016, 8:29 AM
    • Limited Stores is teetering on the edge of bankruptcy, sources tell Bloomberg.
    • A bankruptcy filing and liquidation could occur within weeks.
    • Limted has lost a series of top execs over the last few months.
    • Limited Stores was spun off from L Brands (NYSE:LB) in 2007.
    Dec. 21, 2016, 8:29 AM | 4 Comments
  • Dec. 15, 2016, 10:54 AM
    • Moody's forecasts retail sales will increase 3% to 4% in 2017 and operating income will be up 4% to 5%,
    • Relating to DG, DLTR, FIVE: "Dollar stores will be among the top-performers in 2017, as cash-strapped consumers look to save money on multiple fronts."
    • Relating to the home improvment sector (HD, LOW): "Home improvement stores such as Home Depot and Lowe's will benefit from the continuing robust recovery of the housing market, and the subsiding deflationary pressure on supermarkets in 2017 should result in the sub-sector outperforming the broader retail industry."
    • Relating to mall chains (GPS, FINL, FL, CROX, DECK, LB, ANF, DDS, M, JWN, AEO): "Apparel and footwear sellers, on the other hand, will be squeezed as consumers continue to spend more on healthcare, rent, home-related products, electronics and cars, while weak traffic trends and competitive pressure will continue to impact operating performance of department stores."
    • Moody's says Wal-Mart (WMT +0.4%) will continue to see bottom-line pressure as wage hikes and investment for future growth squeez its profits.
    • ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, PEJ, RCD, PMR, UGE, SZK, CNDF, FTXD, JHMC.
    Dec. 15, 2016, 10:54 AM | 3 Comments
  • Dec. 1, 2016, 7:19 AM
    • L Brands (NYSE:LB) reports comparable sales increased 4% in November.
    • Comparable sales were up 5% at Victoria's Secret stores and 4% at L Brands and Bath & Body Works outlets.
    • Total sales during the month were up 7% to $1.169B.
    • The company ended the month with 3,085 stores vs. 3,005 at the end of the last fiscal year.
    Dec. 1, 2016, 7:19 AM | 4 Comments
  • Nov. 30, 2016, 2:14 PM
    • Retail Metrics: The retail industry specialist expects chain stores to report a 1.1% increase in comparable sales during November. The estimate on October retail comparable sales was revised up to 1.5% from 1.0%. Both marks arrive against a deflation and low traffic headwind in the sector.
    • NPD Group: The research firm plays meteorologist by warning that the lack of "true" winter weather will hit some apparel and shoe sellers.
    • FBR Capital: The firm points to a strong month for Bath & Body Works (NYSE:LB).
    • Piper Jaffray: The retail analyst team is cautiously optimistic that Costco (NASDAQ:COST) is off to a good start.
    • November has been a stellar month for Target (NYSE:TGT) and Best Buy (NYSE:BBY), up 16% and 18% respectively. Both retailers trade with a ~14 forward PE ratio which has some traders buzzing that's still room left to run.
    • Amazon dominated a lot of the Black Friday and Cyber Monday talk, but it was Wayfair (W +4.6%) that may have posted the most impressive online sales growth vs. expectations. Shares of Wayfair are still 28% below their 52-week high, although valuation isn't for the feint of heart.
    • At home on Seeking Alpha, there's been some good discusssion on the impact of the reduction of SNAP benefits (nutrition assistance) in the U.S. on the retail sector. Tomorrow's earnings report from Dollar General (NYSE:DG) and the firm's conference call Q&A could shine a light on that wildcard.
    • Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, CNDF, FTXD, JHMC, IBUY.
    • Previously: Black Friday channel checks show pockets of strength (Nov. 28)
    • Previously: Department store sales in positive territory for November (Nov. 29)
    • Previously: Cyber Monday wrap and retail outperformers (Nov. 29)
    Nov. 30, 2016, 2:14 PM | 3 Comments
  • Nov. 28, 2016, 8:13 AM
    • Piper Jaffray is active with some rating moves in the retail sector after factoring in Black Friday shopping trends.
    • The investment firm boosts its rating on Gap (NYSE:GPS) and L Brands (NYSE:LB) to Neutral. Both stocks were languishing with Underweight ratings at PJ previously.
    • Toy makers Hasbro (NASDAQ:HAS) and Spin Master are lowered to a Neutral ratings on valuation calls. Hasbro is assigned a price target of $88 and Spin Master (OTC:SNMSF) is tagged with a C$39 PT.
    • Source: Bloomberg
    Nov. 28, 2016, 8:13 AM | 1 Comment
  • Nov. 25, 2016, 11:57 AM
    • KeyBanc calls Amazon (AMZN -0.1%) and Wal-Mart (WMT +0.7%) early winners of the Black Friday shopping period based on channel checks.
    • The investment firm confirms other reports that mall traffic is light. Within the mall sector, Lululemon (LULU +0.2%), Victoria's Secret (NYSE:LB) and Gaps (GPS -1.4%) are called outperformers - while concerns are raised over Buckle (BKE +0.6%) and Vera Bradley (VRA +0.8%).
    • Cowen also sees Wal-Mart as a winner. Pink (LB) and American Eagle Outfitters (AEO +0.2%) are also doing wel, according to analyst Olivia Chen.
    • MKM Partners has an eye on margins. The combination of "virtually all" retailers offering broad discounts on store assortment and a low level of inventory heading into the shopping period is striking.
    • FBR Capital reiterates the broad theme that online sales are diluting Black Friday store traffic. Despite the overhang - Carter's (CRI +0.2%), Hanesbrands (HBI -0.3%), Chico's (CHS +0.7%) and Children's Place (PLCE +1.3%) are called out by FBR as standouts.
    • #BlackFriday
    Nov. 25, 2016, 11:57 AM | 11 Comments
  • Nov. 16, 2016, 4:22 PM
    • L Brands (NYSE:LB) expects Q4 EPS to fall in a range of $1.85 to $2.00, below the consensus mark from analysts of $2.03.
    • As a monthly reporter of sales, there were no surprises with L Brands on the top line for Q3. A two penny beat was generated on the bottom line of fsome cost cutting.
    • Previously: L Brands beats by $0.02, beats on revenue (Nov. 16)
    Nov. 16, 2016, 4:22 PM | 4 Comments
  • Nov. 16, 2016, 4:16 PM
    • L Brands (NYSE:LB): Q3 EPS of $0.42 beats by $0.02.
    • Revenue of $2.58B (+4.0% Y/Y) beats by $10M.
    • Shares -0.04%.
    • Press Release
    Nov. 16, 2016, 4:16 PM | 1 Comment
  • Nov. 15, 2016, 5:35 PM
  • Nov. 7, 2016, 9:58 AM
    • Jefferies downgrades L Brands (LB +0.8%) to Underperform from Hold.
    • The investment firm cuts its price target on LB to $50.
    • Earlier this month, SA contributor Chris DeMuth explained why L Brands isn't quite what it used to be during his firm's podcast.
    • The retailer is due to report earnings on November 16.
    Nov. 7, 2016, 9:58 AM