L Brands Has Everything And More Baked In
Alpha Gen Capital
Alpha Gen Capital
Thu, Sep. 15, 1:59 PM
- A new report from Moody's makes the argument that brick-and-mortar retailers such as Wal-Mart (WMT +1.2%) and Best Buy (BBY +0.1%) are thriving due to their sheer physical size. The ratings agency doesn't believe mass store closing are in the future, but sees a continuing trend toward "repurposing" of the store fleets to evolve to the multi-channel world.
- The pitch runs counter to the calls from some analysts for a mass reduction in square footage by major chains.
- Moody's on WMT: "Walmart's recent acquisition of Jet.com, while not a threat to Amazon's position, provides Walmart a speed advantage in boosting online growth by leveraging Jet's ready-made platform."
- Moody's on BBY:" Best Buy is an example of a retailer that continues to successfully transition online, with penetration approaching 20% of total sales."
- The interesting take from Moody's is probably relevant to other larger retail chains such as Staples (SPLS +1.8%), Target (TGT +0.8%), Walgreen Boots Alliance (WBA +0.3%), L Brands (LB +0.6%), Macy's (M +1%), and TJX Companies (TJX +0.8%) as well.
- Moody's press release
Fri, Sep. 9, 9:27 AM
- A survey from William Blair indicates that teenagers and young adults have increased their visits to malls this year to reverse a multi-year trend.
- In what may come as a surprise, teens ranked malls above movie theaters, restaurants, and sports clubs/extracurriculars as their most popular place to meet.
- Despite the depressed levels of overall sales this year for mall retailers, the read on teens could be a possible indicator that the mall model will evolve and survive, instead of disappear.
- "While overall mall traffic remains challenging, our survey this year noted a material increase in the number of respondents who indicated they are visiting malls more often than last year, perhaps suggesting that malls’ efforts to increase relevancy (through more experiential brands and the addition of attractive entertainment and dining options) are beginning to bear fruit," says Bernstein analyst Sharon Zackfia.
- Mall retailers: AEO, ANF, ASNA, BKE, BOOT, CATO, CBK, CHS, CTRN, DSW, EXPR, FRAN, GCO, GES, GPS, LB, NWY, PLCE, SCVL, SMRT, SSI, TLYS, URBN, LULU.
Thu, Sep. 1, 2:42 PM
- Citigroup notes that the impressive comparable store sales gain at L Brands (LB -2.2%) was due in part to the increased focus by Victoria's Secret on selling sports bras.
- VS cut prices steeply in an effort to gain market share against AEO's aerie brand.
- Although the extra sales were accomplished, merchandise margins may narrow for LB, observes Citi.
Thu, Sep. 1, 7:31 AM| Thu, Sep. 1, 7:31 AM
Mon, Aug. 22, 9:12 AM
- Shares of L Brands (NYSE:LB) are higher in early trading after Goldman Sachs upgrades the retailer to a Buy rating from Neutral.
- "2Q results have eased our concerns about how disruptive the new promotional strategy at Victoria's Secret would be on the business, and we believe a bottom is visible for productivity and margins," reads the note from analyst Lindsay Drucker.
- Goldman's new price target of $94 implies upside potential of more than 18% for L Brands.
- LB +1.98% premarket to $79.30.
Thu, Aug. 18, 8:12 AM
- L Brands (NYSE:LB) is higher after reporting a 3% increase in same-store sales in Q2.
- Same-store sales rose 2% at Victoria's Secret to improve on the 1% mark in Q1.
- L Brands increased full-year EPS guidance to $3.70-$3.85 vs. $3.60-$3.80 prior and $3.73 consensus.
- Previously: L Brands beats by $0.11, beats on revenue (Aug. 17)
- LB +3.29% premarket to $76.50.
Wed, Aug. 17, 5:36 PM
Wed, Aug. 17, 4:16 PM
Tue, Aug. 16, 5:35 PM
Tue, Aug. 16, 10:26 AM
- The RetailMeNot Promotions Index will measure the average retail promotions level from the top 500 U.S. retailers across 19 different categories.
- The broad promotion index currently reads 32.58% which RetailMeNot calls a "moderate" level.
- Tracking of the RetailMeNot data could be of particular interest in the apparel store sector (GPS, LB, AEO, ANF, CHS, PLCE, DSW, DXLG, FRAN, BKE, SSI, DEST, NWY, CTRN, GES, TLRD, SMRT.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, JHMC).
- Source: Press Release
Tue, Aug. 9, 1:36 PM
- There's a dark mood in the apparel store sector after Gap (GPS -6.4%) spilled its July sales numbers.
- The retailer's 4% drop in comparable store sales for the month missed the -1% mark expected by analysts by a wide margin. Gap had raised hopes for a retail sector comeback with a return to a positive comp in June before the July disappointment.
- On a prerecorded sales call (855-500-0477 participant code 7405599), Gap management dropped a discouraging nugget: "We’re maintaining a cautious view of the retail environment in the second half."
- As a bit of a bellwether, the outlook from Gap is resonating across the retail sector. There's also a cut on same-store estimates for Target from Cleveland Research which could be drawing some attention.
- Retail decliners: Tailored Brands (TLRD -5.5%), Ascena Retail Group (ASNA -4.7%), Express (EXPR -4.4%), Citi Trends (CTRN -3.3%), Buckle (BKE -3.4%), Cato (CATO -3.3%), American Eagles Outfitters AEO, Abercrombie & Fitch ANF, Chico's FAS (CHS -2.6%), Kohl's (KSS -3.7%), Dillard's (DDS -2.9%), Macy's (M -2.4%), Fred's (FRED -3.3%), Target (TGT -3.1%), Tuesday Morning (TUES -1.5%), L Brands (LB -1.9%), Christopher & Banks (CBK -2.6%).
Fri, Aug. 5, 10:04 AM
Thu, Aug. 4, 7:33 AM
- L Brands (NYSE:LB) reports comparable store sales increased 2% in July. Comparable store sales rose 6% at Bath & Body Works during the month and were flat at Victoria's Secret/
- Total L Brands sales were up 2% to $760M in July.
- The company says it expects to report Q2 EPS at the high end of its prior guidance range of $0.50 to $0.60.
Mon, Jul. 25, 11:09 AM
- Apparel store stocks are off and running today on some broad strength.
- The sector has seen more buying action of late after hitting a prolonged rough patch. A couple of solid reports on June sales from key retailers and some calming down of the recent civil unrest has contributed to improved outlook.
- Notable gainers include Gap (GPS +3.5%), Nordstrom (JWN +3.3%), L Brands (LB +2.9%), Urban Outfitters (URBN +2.8%), Macy's (M +2.3%), Kohl's(KSS +1.7%), Francesca's Holdings (FRAN +1.5%), Chico's FAS (CHS +2.1%), Tailored Brands (TLRD +1.5%), and DSW (DSW +1.8%).
Fri, Jul. 8, 10:04 AM
- Apparel stocks are ahead of broad market averages after Gap's GPS report on June sales came in ahead of expectations.
- It's the first time Gap has recorded a positive month for comp sales since March of 2015.
- Notable advancers include Stage Stores (SSI +7%), Tailored Brands (TLRD +3.7%), New York & Company (NWY +2.6%), Boot Barn (BOOT +4%), L Brands (LB +3.4%), and Christopher & Banks (CBK +4.6%).
- Previously: Gap higher after sales at Old Navy pick up (July 7)
Thu, Jul. 7, 9:03 AM
- Shares of L Brands (NYSE:LB) are having a volatile premarket session after the company updated on June sales.
- While the company smashed estimates with its impressive +6% comp, it's how the sales were achieved that's posing a problem to investors. L Brands' CIO said on the sales call that a high level of clearance sales at Victoria's Secret and broad semi-annual promotions occurred during June in a development that caused merchandise margins to drop significantly to below expectations. The company expects July comparable-store sales to be flat to down in the low single-digits with some sales pulled forward. The overall read from the month is that there could be a negative impact to EPS from the high mix of clearance sales.
- Previously: L Brands June same-store sales: +6% (July 7)
- LB is -1.40% premarket to $67.51.
- Source: L Brands prerecorded sales call (866-639-7583)