Lululemon (LULU -1%) has another competitor in the yoga/athletic space as Hennes & Mauritz (HMRZF) struts out some new lines, notes Hedgeye's Brian McGough.
The retailer reportedly had decent store traffic during the Black Friday weekend with a low level of discounting and has been added to Janney Capital's 2014 Best Ideas List. Despite heavyweights such as Nike, Adidas, Under Armour, and Gap encroaching into LULU's categories - many retail analysts see demand strong enough to sustain the group.
Hennes & Mauritz (HMRZF.PK) will launch an online store in the U.S. next month.
The retailer will trail rival Zara into the online U.S. market by close to two years and could face difficulty making a splash with heavyweights like Urban Outfitters already well-entrenched with mobile and online consumers.
Hennes & Mauritz (HMRZF.PK) says sales in June are very strong as its new collections hit stores. CEO Karl-Johan Persson notes the strong month isn't due to promotions with most items selling at or near full-price.
A number of retailers are setting up shop in Mexico to test the waters with stand-alone stores amid an alluring decline in tariffs in the nation. The aspirational aspect of young Mexican consumers bodes well for Gap (GPS), American Eagle Outfitters (AEO), Hennes & Mauritz (HMRZF.PK), and Forever 21 - but the influx of new retailers has cut into sales for the local arm of Wal-Mart (WMT).
Google just released a new tool under Google Trends to rank the highest search terms per category. Though it's not quite actionable advice quite yet, a lot of scientific abstracts have been making a solid case that in some industries a correlation between Google searches and stock prices exists. The trick is separating negative searches from positive ones. The most searched fashion brands on Google: 1) Forever 21 2) American Eagle Outfitters (AEO +2.3%) 3) Hennes & Mauritz (HMRZF.PK) 4) Tiffany (TIF +0.2%) 5) Hollister (ANF +1.2%).
Hennes & Mauritz (HMRZF.PK) plans to spend close to €100M ($130.06M) on a plan to add 50 stores in India. As is now par for the course in India, the retailer will have to set up a wholly-owned subsidiary in order to do business in the nation.
Europe retail watch: Hennes & Mauritz (HMRZF.PK, HNNMY.PK) saw sales increase 2% Y/Y to 28.4B kronar ($4.39B) during FQ1 while profit slumped 10% to 2.46B kronar ($380M). Execs warn that 2013 will be challenging as a severe bout of cold weather delays the start of spring collections in key markets.
Hennes & Mauritz (HMRZF.PK, HNNMY.PK) beat expectations for a sharp decline in comparable store sales in November as it recorded 32.5B Swedish kroner ($4.87B) during the period. It's a sign of life for the European retail sector which could bode well for select U.S. retailers selling on the continent.
Retailers start to increase the number of plus-size lines as higher demand in the market pushes it to the point that revenue might make up for the extra costs for designs and materials. Hot Topic (HOTT -2.7%) with its Torrid brand has positioned itself as one of the fashion leaders in the sub-sector with a more independent and bold approach led by CEO Lisa Harper, while Fifth & Pacific (FNP -0.5%) and Hennes & Mauritz (HMRZF.PK, HNNMY.PK) are also making a push.
A profit warning from Swedish clothing seller Hennes & Mauritz (HMRZF.PK, HNNMY.PK) appears to have crossed the pond to taint select retail names in the U.S. Foreign exchange headaches and unseasonably warm weather contributed to a 4% decline in H&M's same-store sales after analysts had called for a gain, raising some questions on the sector only a week after Burberry's own warning rattled luxury names. Feeling the heat: NWY -2.7%, CBK -2.2%, BODY -1.6%, BONT -1.8%, SKS -2.5%.
H&M (HMRZF.PK, HNNMY.PK) same-store sales fell for the third month in a row in November, coming in at -1% vs. analyst expectations of +0.4%. Shaky economies and unusually warm weather helped keep consumers out of its stores.