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.
Fri, Jul. 17, 11:51 AM
- Macy's (M +0.8%) drifts higher to set new all-time highs once again.
- The company popped earlier this week after some Starboard math showed shares could be worth $125.
- Starboard's Jeffrey Smith wants to see Macy's adopt a REIT plan and buy back more shares with the proceeds.
- Rogers Kniffin Worldwide CEO Jan Kniffen threw in a curveball as well by noting a larger retail chain such as TJX Companies TJX could swallow up Macy's if Starboard doesn't get its way.
- Macy's is +10.41% for the week to $73.40.
- Previously: Macy's pops after Starboard discloses stake (Jul. 15 2015)
Wed, Jul. 15, 11:31 AM
- Macy's (NYSE:M) is up 4.86% suddenly after sitting in negative territory following a disclosure by Starboard's Jeff Smith that the the firm took a position.
- Smith thinks the stock could run to as high as $125 or higher.
- Starboard has a good track record recently in the retail and restaurant sectors.
Wed, Jul. 15, 8:56 AM
- Today's promotional battle between Wal-Mart (NYSE:WMT) and Amazon (NASDAQ:AMZN) could have two winners (besides consumers) and many losers, according to retail analysts.
- The retail machines could pull forward some back-to-school sales away from rivals and smaller chains without the online reach.
- Shopatron's John Pincott notes it's nearly impossible for consumers to miss the Amazon and Wal-Mart deals due to the broad marketing efforts and allure of a Black Friday-type event.
- Amazon initiated the promotional battle with a one-day sale celebrating the company's 20th anniversary, while Wal-Mart continues to counterpunch against the moves coming out of Seattle.
- Margin worries will continue to be in the background while the heavyweights slug it out for top-line growth.
- What to watch: Companies in the line of fire of the promotional salvos include Staples (NASDAQ:SPLS), Best Buy (NYSE:BBY), Target (NYSE:TGT), Costco (NASDAQ:COST), and Office Depot (NASDAQ:ODP). There's also an alarming trend in play for department stores (JCP, DDS, KSS, M, TJX) with more BTS family shopping for clothing turning online.
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)
- Related stocks: M, KSS, JWN, DDS, JCP, LB, TLYS, SHLD, TJX, BONT, SSI, OTCPK:BLKIA.
Mon, Jul. 13, 12:18 PM| Mon, Jul. 13, 12:18 PM | Comment!
Sat, Jul. 11, 1:14 PM
- It has become quite a bit easier for large retail chains to go with the "Made in the USA" mantra due to the higher cost of producing goods in China.
- Chinese labor costs on average are now 61% of the level of the U.S. compared to just 17% about 15 years, according to an estimate from Boston Consulting Group.
- That 39% edge is reduced even further if transport and supply chain costs are factored in.
- Wal-Mart (NYSE:WMT) and Nike (NYSE:NKE) are two of the majors buying more from U.S. suppliers due as much to the economic benefit as the patriotic flavor. Target (NYSE:TGT), Macy's (NYSE:M), and Costco (NASDAQ:COST) have also highlighted American product lines recently.
Wed, Jul. 8, 3:35 AM
- PVH (NYSE:PVH) is winding down the production of Donald Trump's menswear after exclusive retail partner Macy's (NYSE:M) decided to stop selling his products in protest against his recent remarks about Mexicans.
- PVH, whose brands include Tommy Hilfiger, Calvin Klein, Van Heusen and Arrow, signed a licensing deal in 2004 for apparel under the Donald J. Trump brand. That deal was supposed to end in 2018.
- Previously: Credit card breach hits Trump Hotel Collection (Jul. 02 2015)
Thu, Jul. 2, 3:32 AM
- It's been a long week for presidential candidate Donald Trump. Several big-name partners, including Univision and Macy's (NYSE:M), severed ties with the business mogul over his recent remarks about Mexicans - and more trouble is brewing.
- According to cybersecurity site Krebs, the Trump Hotel Collection has fallen victim to a sweeping credit-card hack. The breach appears to go back to at least February and could span several locations.
Mon, Jun. 8, 12:05 PM
- Macy's (M -0.2%) signed a lease for a 35K square foot building in the Bronx for its new off-price concept.
- The company is expected to roll out Macy's Backstage at a measured pace. Six store openings are set for this fall.
- Macy's Backstage will offer clearance prices on Macy's products as well as on some well-known brand name lines.
Thu, Jun. 4, 7:06 AM
- Credit Suisse downgrades department store stocks in a broad swipe at the sector.
- Nordstrom (NYSE:JWN) is moved by CS to a Neutral rating from Outperform.
- Dillard's (NYSE:DDS) is taken to Underperform from Neutral.
- The investment firm also warns that upside on current valuation is limited for Bon-Ton Stores (NASDAQ:BONT), J.C. Penney (NYSE:JCP), Kohl's (NYSE:KSS), Macy's (NYSE:M), and Stage Stores (NYSE:SSI).
- The sector picked up some steam earlier this week off REIT enthusiasm.
- Previously: REIT is the word in retail (Jun. 02 2015)
Tue, Jun. 2, 12:41 PM
- Several hedge funds are putting pressure on Macy's (NYSE:M) to consider real estate options, sources tell Reuters.
- The company has resisted the call from investors in the past, but faces stronger pushback now from hedge funds with their stakes increased.
- Department store chains with large retail footprints have increasingly looked at REIT options to boost shareholder returns.
- Macy's is up 2.63% on the day.
Mon, May 18, 2:55 PM
- Department store chains Kohl's (KSS -0.3%), Macy's (M +2.3%), and J.C. Penney (JCP -0.6%) are moving to a higher mix of local and digital advertising as they leverage data they have mined from loyalty programs and spending histories, according to AdAge.
- Implementing "personal touches" into marketing messages is seen as a way to increase brand awareness and conversions.
- Total advertising spending for some companies in the sector has been on the decline.
Fri, May 15, 6:05 PM
- After having exited a prior GM position a year ago, David Einhorn's Greenlight Capital bought 9.5M shares of the auto giant in Q1, per Greenlight's Q1 13F.
- Einhorn previously disclosed the purchase, along with his reasoning, in his Q1 letter. "2015 should be a better year for GM: the company is a year closer to eliminating its losses in Europe; low gas prices should stimulate demand for its highly profitable SUV and light truck product lines; raw material costs are low; and we believe that the worst of the product recalls is behind them." He also noted GM's buyback, and called earnings estimates beatable.
- A 1.7M-share stake was taken in Macy's (NYSE:M), and a 1.1M-share stake in Ingram Micro (NYSE:IM). Greenlight's stake in Chicago Bridge & Iron (NYSE:CBI) was more than doubled to 6.7M shares, and its stake in AerCap (NYSE:AER) hiked by 49% to 5.6M.
- On the flip side, Greenlight liquidated a 1.3M-share stakes in Aetna (NYSE:AET) and Amdocs (NASDAQ:DOX). The firm cut its stake in chipmaker/long-time holding Marvell (NASDAQ:MRVL) by 63% to 9M shares, and in chip equipment maker Lam Research (NASDAQ:LRCX) by 33% to 1.7M shares.
Wed, May 13, 9:02 AM
- Department store stocks are on watch after a disappointing Q1 report from Macy's and a weak read on the sector from the Department of Commerce with its April Retail Sales report.
- Department store sales fell 2.2% M/M and 5.1% Y/Y in April.
- Previously: Macy's -2.6% as sales come in light (May 13)
- Previously: Retail sales continue to slow (May 13)
- Related stocks: DDS, M, SSI, BONT, SHLD, JCP, KSS, JWN.
Wed, May 13, 8:16 AM
- Macy's (NYSE:M) says sales were impacted in Q1 from the West Coast port slowdown and a lower level of spending from international tourists.
- Comparable-store sales on an owned+licensed basis fell 0.1% during the period.
- Gross margin rate +10 bps to 39.0%.
- SG&A expense rate +60 bps to 32.4%.
- Operating income rate -50 bps to 6.6%.
- Inventory ended the quarter up 2.7% Y/Y.
- The company adds $1.5B to its buyback allowance.
- Guidance: Macy's backs its previous view for 2015 EPS of $4.70-$4.80.
- Previously: Macy's misses by $0.06, misses on revenue
- M -2.59% premarket.
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