Feb. 26, 2014, 1:49 PM| 4 Comments
Feb. 14, 2014, 9:50 AM
- JPMorgan analyst Thomas Lee thinks personal spending in the U.S. will hold up enough to give a boost to consumer stocks.
- He has seven large cap consumer stocks lined up as recommended picks for investors to buy. The list runs the gamut from beaten-down retailers to media giants.
- JPM's top consumer stocks: Best Buy (BBY), Coach (COH), Disney (DIS), Lowe's (LOW), Macy's (M), MGM Resorts (MGM), Viacom (VIAB).
Jan. 30, 2014, 12:46 PM
- Shares of Best Buy (BBY -1.1%) slip after dismal guidance from hhgregg (HGG -17.8%) throws a scare into investors.
- hhgregg CEO Dennis May called the big box atmosphere "intensely promotional" and noted his company declined to participate in the price slashing.
- The 11% drop in comp sales at hhgregg suggest Best Buy might have picked up some incremental market share in Q4.
Jan. 22, 2014, 1:38 PM
- Overall retail space could be reduced by between one-third to one-half over the next ten years, forecasts industry watcher Michael Burden.
- The harsh assessment could indicate the round of store closings from Sears Holdings (SHLD), J.C. Penney (JCP), and Macy's (M) is only the tip of the iceberg. Watch for American Eagle Outfitters (AEO), Aeropostale (ARO), Dillard's (DDS), Nordstrom (JWN), and Kohl's (KSS) to enact some logical downsizing, while even Wal-Mart (WMT) and Best Buy (BBY) could surprise with some paring.
- Analysts think stores at malls will be shuttered faster than open air outlets.
- What to watch: Vibrant brands such as Michael Kors (KORS), Lululemon (LULU), and Vince (VNCE) could shift into a standalone mode as consumer demand stays strong for their on-trend products, but mall metrics trend weaker.
Jan. 16, 2014, 5:11 PM| 7 Comments
Jan. 16, 2014, 12:47 PM
Jan. 16, 2014, 9:10 AM
Jan. 16, 2014, 8:37 AM
- Execs with Best Buy (BBY) did little to shore up confidence in the retailer during their conference call this morning.
- CEO Hubert Joly said the company had to live up to its early promises to customers which left it in a predicament when peers dropped prices.
- The tone of the call is such that the company seems to be indicating its wants get back to its service value-added proposition which sets it apart from Amazon and stop playing the cut-throat game of protecting every basis point of market share.
- BBY -29.5% premarket
- Holiday sales conference call webcast
Jan. 16, 2014, 7:37 AM
- Best Buy (BBY) blames a runaway promotional train for driving holiday sales lower on weak pricing it was cornered into by early promises.
- Sales gains in the appliance and gaming categories were more than offset by the widespread weakness seen in other areas.
- On top of its promotional headaches, Best Buy says it also faced supply constraints on select products during the period.
- Online sales rose 23.5% for the holiday season.
- Quick analyst take: Expect store closures.
- BBY -32.4% premarket to $25.39.
Jan. 16, 2014, 7:16 AM
- Best Buy (BBY) is off 19.2% in premarket action after reporting holiday season comparable store sales fell 0.8%. Online sales were up 23.5%.
- CEO Hubert Joly cites "aggressive promotional activity in the retail industry during the holiday period, which we believe did not result in higher industry demand and had a deflationary impact on our revenue."
- CC at 8 ET
- Press release
Jan. 14, 2014, 5:19 PM
- Specialty retail categories are where e-commerce has had the strongest impact on brick-and-mortar stores, concludes Re/code after scanning sales charts.
- While food and healthcare categories show lower e-commerce penetration as consumers only slowly pivot away from their traditional buying habits - retailers that sell clothing (EXPR, RUE, ZUMZ, PSUN, AEO, CACH, BODY, CHS, CWTR, NWY, BEBE, ANN, CBK) , sporting goods (HIBB, CAB, BGFV), and electronics (BBY, RSH) continue to lose market share to online sellers at an astonishing pace that shows little signs of slowing down.
- Demographics aren't working in the favor of the trend reversing itself either as more teens show a tendency to favor online upstarts such as Nasty Gal or Stitch Fix over former mall rat favorites like Gap (GPS), Aeropostale (ARO) or Abercrombie & Fitch (ANF). The younger set is also attuned to deal-shopping and buying used products online which are margin killers in the electronics category.
- Re/code sees at least two companies that don't mind the e-commerce evolution: FedEx (FDX) and UPS (UPS) could get busier and busier.
Jan. 6, 2014, 10:47 AM
- Best Buy (BBY -4.1%) trades weaker after hhgregg reveals that holiday sales were "significantly impacted" by the intense promotional cadence from retailers on TV and tablet products.
- Execs with Best Buy made it clear last fall that they would try to meet the best holiday deals available in the key categories.
Dec. 31, 2013, 1:07 PM
- Gift cards are a bigger part of the earnings matrix for retailers this year with usage rising to 23.7% of all holiday spending.
- Companies which have their fiscal quarter end in January stand a better chance of realizing gift card sales along with holiday sales, while those with a December 31 ending date could see sales slip into the next period.
- The volume of gift card sales can also factor in to how promotional firms decide to become during the post-Christmas season.
- Previous: Gift card sales data, Starbucks' cash cow.
- Related stocks: BBY, HAWK, AEO, ANF, ARO, BBBY, CHS, GPS, JCP, JWN, KSS, LB, M, URBN, WSM.
Dec. 30, 2013, 8:32 AM
- Best Buy (BBY) lands on JPMorgan's list of nine "value" stocks that will outperform growth stocks in 2014.
- The retailer is now well-positioned after winning over both consumers and mobile device manufacturers with its new store format.
- For the value proposition, the investment firm points to BBY's 1.7% dividend yield and price-to-sales ratio.
- BBY +0.4% premarket.
Dec. 27, 2013, 9:09 AM
- The word "guarantee" was thrown around too loosely this holiday season by retailers, writes The Dallas Mornings News' Maria Halkias.
- While UPS (UPS) blames bad weather for falling short with some deliveries this year, the company only hired the same number of temporary workers as last year despite forecasts for booming online sales. FedEx (FDX) and the USPS also had their own glitches. The spottier-than-normal delivery record this year falls on the shoulders of the retail sector not shippers.
- What to watch: Online retail tracking firm StellaService reports that sellers such as Zappos, Amazon (AMZN), Wal-Mart (WMT), Best Buy (BBY), and Victoria's Secret (LB) scored well in meeting aggressive deadlines, although the cost may be high. Many of the firms upgraded late-ordering customers to express shipping to avoid a customer service backlash. Next year, deadlines may be earlier and holiday margins higher.
Dec. 26, 2013, 12:26 PM
- Best Buy (BBY +1.4%) has made impressive strides with its efforts to turn the impact of showrooming by consumers at stores into a positive.
- The company's marketing campaign and focus on higher-level customer service has helped consumer opinion on Best Buy improve markedly, according to social media tracking.
- Despite the gains, 10% of consumers polled say the ability to sample products at Best Buy still gives an advantage to Amazon.
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