• Fri, Jan. 20, 11:54 AM
    • Northcoast Research thinks Signet Jewelers (SIG +0.6%) could be closing in on a sale of its credit business.
    • "We estimate that sale price in such a transaction could approach $1.275B. Assuming they pay off the corresponding line of credit of $600M, this would leave $675M of net proceeds that could be used for stock buyback, and could provide over $0.80 in accretion," advises analyst Jeff Stein.
    • Northcoast keeps a Neutral rating on Signet.
    Fri, Jan. 20, 11:54 AM
  • Wed, Jan. 18, 12:00 PM
    • Consumer Edge Research analyst David Schick dives into today's CPI print from the Bureau of Labor Statistics.
    • On the inflationary side, Schick notes that jewelry and watch prices (+5% Y/Y), pet services (+2.2%) and video/audio equipment (+1.5%) showed price increases in December.
    • Sporting goods (-1.4%), personal computers/equipment (-6%) and toy prices (-9%) came in weak.
    • Apparel prices were down 0.2% Y/Y after showing increases in October and November. Grocery deflation was "less bad" with a 2.0% drop in December vs. -2.2% in November.
    • Related stocks: SIG, NILE, FOSL, PETM, GPRO, BTN, DKS, HIBB, BGFV, CAB, BBY, KR, SVU, SFM, HAS, MAT, JAKK.
    Wed, Jan. 18, 12:00 PM | 4 Comments
  • Fri, Jan. 13, 2:15 PM
    • Some major store chain names are lower after the retail sales report this morning showed weakness in some key categories and GameStop issued disappointing sales numbers for the holiday period.
    • Best Buy (BBY -0.7%), Wal-Mart (WMT -1%), Target (TGT -1.3%), Signet Jewelers (SIG -3%), J.C. Penney (JCP -1.6%), Nordstrom (JWN -1.4%) and Conn's (CONN -4%) are some of the stocks in the retail sector that are trailing market averages.
    • Earlier today, Stifel's Lindsay Piegza told Seeking Alpha that consumers are waiting for the proof of the Trump GDP breakout amid the reality of higher healthcare costs. At least for today, some investors may be doing the same.
    • Previously: Retail sales fall short of estimates (Jan. 13)
    • Previously: Stifel Nicolaus says consumers are waiting for the proof (Jan. 13)
    Fri, Jan. 13, 2:15 PM | 31 Comments
  • 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
  • Wed, Jan. 11, 7:14 AM
    • Signet Jewelers  (NYSE:SIG) reports same store sales decreased 4.6% for the nine-week holiday period.
    • Total sales fell 5.1% or -3.3% on a constant curreny basis
    • The company says it's maintaining the low-end of its earnings guidance based off the performance.
    • Q4 guidance: Same-store sales -4.8% to -4.3%, EPS $4.00-$4.05.
    • FY guidance: Same-store sales -2.5% to -2.0%, EPS $7.38-$7.43.
    • SIG -4.49% premarket to $83.53.
    • Source: Press Release
    Wed, Jan. 11, 7:14 AM | 3 Comments
  • Thu, Jan. 5, 1:02 PM
    Thu, Jan. 5, 1:02 PM | 8 Comments
  • 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. 6, 2016, 4:33 PM
    • Signet Jewelers (NYSE:SIGfalls 1.2% in AH trading after hedge fund Corvex reports a reduce stake in the company.
    • Corvex now holds a  4.97% position in Signet.
    • SEC Form 13D
    Dec. 6, 2016, 4:33 PM
  • Nov. 28, 2016, 8:33 AM
    • Black Friday weekend channel checks from investment firms are still pouring in. A few tidbits are posted below.
    • Wells Fargo: Lululemon (NASDAQ:LULU) was a traffic outperformer, while Calvin Klein (NYSE:PVH) and Carter's (NYSE:CRI) held the line on pricing amid a promotional atmosphere.
    • Wedbush: High-profile video games were discounted more than last year. Keep an eye out on GameStop (NYSE:GME), Activision Blizzard (NASDAQ:ATVI), Take-Two (NASDAQ:TTWO) and Electronic Arts (NASDAQ:EA).
    • Fung Global Retail & Technology: Shoes (FL, FINL) were identified as a hot seller, while jewelry (NYSE:SIG) sales were down.
    • Jefferies: Unexpected strength for the UGG brand (NASDAQ:DECK) and Gap was observed. Demand for Michael Kors (NYSE:KORS) and Coach (NYSE:COH) handbags appeared soft.
    • Previously: Black Friday wrap: Records fall, retail winners and losers (Nov. 25)
    • Source: Bloomberg.
    Nov. 28, 2016, 8:33 AM | 3 Comments
  • Nov. 22, 2016, 9:17 AM
    Nov. 22, 2016, 9:17 AM | 2 Comments
  • Nov. 22, 2016, 8:09 AM
    • Signet (NYSE:SIG) reports same-store sales fell 2% in Q3 due to under performance in select stores.
    • Ecommerce sales rose 2.2% to $51.6M.
    • Comp growth by brand: Kay -2.9%, Jared -4.6%, Sterling -3.8%, Zales (total) +0.2%, Zales US Jewelry -1.5%, H.Samuel +1.5%, Ernest Jones +5.7%, UK Jewellers division +3.6%.
    • Adjusted gross margin rate dropped 100 bps Y/Y to 29.6%.
    • Adjusted SG&A expense rate flat Y/Y at 31.7%.
    • Adjusted operating margin rate slipped 20 bps to 3.7%.
    • Net inventory down 2.8% Y/Y to $2.6B.
    • Store count +70 Y/Y to 3,668.
    • Q4 Guidance: Same-store sales: -4% to -2%; Adjusted EPS: $4 to $4.20; Shares outstanding: ~76M.
    • FY2017 Guidance: Same-store sales: -2.5% to -1.0%; Adjusted EPS: $7.38 to $7.58; Tax rate: 25% to 26%; Capex: $280M to $320M; Net selling square footage growth +3.0% to +3.5%.
    • SIG +8.13% premarket.
    Nov. 22, 2016, 8:09 AM | 2 Comments
  • Nov. 22, 2016, 6:59 AM
    • Signet (NYSE:SIG): Q3 EPS of $0.30 beats by $0.10.
    • Revenue of $1.19B (-2.5% Y/Y) beats by $10M.
    • Shares +1.26% PM.
    • Press Release
    Nov. 22, 2016, 6:59 AM
  • Nov. 21, 2016, 5:30 PM
  • Oct. 26, 2016, 9:16 AM
    Oct. 26, 2016, 9:16 AM
  • Oct. 8, 2016, 9:09 AM
    • Retailers want the U.S. election over and quick. The negative tone has created a degree of uncertainty with consumers that has impacted spending and traffic patterns, according to a host of top execs.
    • "There is just great uncertainty as to what is going to happen in the U.S. in particular as a result of the outcome of the election," noted Yum Brands (NYSE:YUM) CEO Greg Creed recently. "People may be hunkering down a little bit," he added.
    • Expect the topic to be raised on a large number of Q3 earnings calls over the next month to explain away revenue misses.
    • It's not an excuse that everyone is buying into. Retail Metrics president Ken Perkins doubts that daily shopping needs are cut short by election fascination and notes consumer confidence is measuring high. Then there's Amazon (NASDAQ:AMZN) which seems to be rolling right along without any Clinton-Trump fatigue.
    • Beyond the election wildcard, two underestimated factors impacting some retailers in a more concrete way are the lower level of SNAP (food stamps) benefits being paid out by the government and the elevated cost of health care. There is also the massive challenge with a millennial generation that shuns chains. Just ask anyone in the restaurant sector (NASDAQ:BITE).
    • Add it all up and it makes for a challenging period for a mix of retailers that includes Dollar General (NYSE:DG), Dollar Tree (NASDAQ:DLTR), Fred's (NASDAQ:FRED), Ross Stores (NASDAQ:ROST), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Staples (NASDAQ:SPLS), McDonald's (NYSE:MCD), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Wendy's (NYSE:WEN), Supervalu (NYSE:SVU), Kroger (NYSE:KR), SIgnet (NYSE:SIG), TJX Companies (NYSE:TJX), and Casey's General Stores (NASDAQ:CASY).
    • Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK, CNDF, FTXD, JHMC.
    Oct. 8, 2016, 9:09 AM | 73 Comments
  • Oct. 5, 2016, 11:11 AM
    • A number of chain store stocks are tracking higher after a number of positive economic reads came in this week. The rally is somewhat limited to apparel store names and specialty retailers.
    • Traders may be looking at data from ISM that indicated a solid jump in services sector activity.
    • Also yesterday, Redbook reported the first +1% increase in chain store sales since May and the National Retail Federation forecast a solid 3.6% gain in holiday sales.
    • Leading sector gainers include Ascena Retail Group (ASNA +7.1%), Chico's FAS (CHS +3.4%), Gap (GPS +3.4%), Abercrombie & Fitch (ANF +2.2%), Stage Stores (SSI +3.6%), Boot Barn (BOOT +0.8%), Express (EXPR +2.1%), and Francesca's (FRAN +2%), Pier 1 Imports (PIR +6%), The Container Store (TCS +4.9%), Restoration Hardware (RH +2.1%), and Signet Jewelers (SIG +3.6%).
    Oct. 5, 2016, 11:11 AM | 3 Comments