Yesterday, 11:46 AM
- A strategic decision made by L Brands (LB +0.6%) on merchandise transport appears to be paying off.
- The Columbus Dispatch noted that the company opted several years ago to ship by air in a move aimed at helping it adjust on the fly to fashion preference shifts.
- Due to the strategy, L Brands has avoided many of the problems with winter and spring inventory linked to the port disruption on the West Coast.
- Victoria's Secret CEO Sharen Turney on the issue: "We were fortunate that we bypassed all the west coast strikes because we made decisions to air everything."
- L Brands has also caught a break recently with some global fast-fashion companies backing off of their aggressive U.S. expansion plans.
- Previously: L Brands same-store sales: +6%
- Previously: L Brands sales call: Margin improvement across brands
- Earnings call transcript
Yesterday, 8:07 AM
- Shares of L Brands (NYSE:LB) are on watch after February same-store sales come in at +6% vs. +4.9% consensus estimate.
- On a prerecorded sales call, management said merchandise margins were up across brands.
- The Victoria's Secret comp was up 7%.
- The transition to the spring collection is going well. No mention of a negative impact from the West Coast port issue.
- An early Easter should have a meaningful impact on March comps, tip execs.
- Previously: L Brands same-store sales: +6%
Yesterday, 7:08 AM
Wed, Feb. 25, 4:15 PM
- L Brands (NYSE:LB) reports comparable-store sales rose 6% in Q4.
- Comp sales by brand: Victoria's Secret +4%, Bath & Body Works +8%, L Brands +6%, Victoria's Secret Direct -2%.
- Operating income +12% Y/Y to $1.953B.
- Company-owned store count +8 Y/Y to 1,646.
- Franchise store count +62 to 650.
- Guidance: L Brands expects 2015 EPS of $3.45-$3.65 vs. $3.83 consensus.
- LB -1.48% after hours.
Wed, Feb. 25, 4:11 PM
Tue, Feb. 24, 5:35 PM
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Wed, Feb. 18, 2:09 PM
- JPMorgan sees a bounce in retail sales over the next two quarters as stronger employment rates and lower gas prices underpin demand.
- A screen by JP dug out the 12 stocks which show the largest correlation with headline retail sales growth.
- A dozen to watch in retail: GM, F, COH, SBUX, BWA, DLPH, VFC, IPG, LB, OMC, TSCO, HOG
Tue, Feb. 17, 3:05 PM
- Sterne Agee takes a dive into the retail sector and comes out with a warning on Q1 guidance for select names.
- Widespread winter storms and F/X headwinds are two negative factors that can't be ignored.
- The investment firm sees Gaps (GPS -0.8%) and Fossil (FOSL +0.9%) as the most at risk to come up short during the quarter.
- Caution is also doled out on L Brands (LB -1.5%) and Carter's (CRI -0.3%).
Thu, Feb. 5, 8:29 AM
- Special dividends are back on the plate for investors in the retail sector.
- Costco (NASDAQ:COST), Stein Mart (NASDAQ:SMRT), and L Brands (NYSE:LB) have all announced a special dividend within the last week.
- Though the capital allocation strategy has been criticized in the past for lacking creativity, some analysts note that in the retail sector investing in too many stores hasn't paid off for everyone.
- The special dividend group mentioned above have all out-performed the S&P Retail ETF over the last year: XRT +19% vs Costco +39%, Stein Mart +35%, L Brands +65.
Thu, Feb. 5, 7:08 AM| 4 Comments
Thu, Jan. 22, 10:57 AM
- YouGov is out with its best brands of 2014 ranking.
- The methodology from the firm is based on positive or negative consumer perception to a brand as tested throughout the year.
- Top 5 Retail clothing brands: Victoria's Secret (NYSE:LB), Old Navy (NYSE:GPS), Kohl's (NYSE:KSS), Macy's (NYSE:M), and Men's Warehouse (NYSE:MW).
- Perhaps a surprise, but the two biggest positive movers on the list were Abercrombie & Fitch (NYSE:ANF) and Forever 21.
Wed, Jan. 21, 3:48 PM
- Victoria's Secret (LB +0.1%) will return to the Super Bowl on February 1 with a commercial slotted to air after the two-minute warning in the 4th quarter of the game. Supermodels are expected to be featured in the $4.5M (estimated) spot.
- The brand's return to the big event is aimed at driving a Valentine's Day sales boost.
- The exit of a few retail competitors could provide a minor benefit as well.
- Last year, Victoria's Secret saw comparable-store sales increase 3% on a flat direct comp with the second half of the year stronger than the first.
- What to watch: Standalone PINK stores could start to become meaningful for L Brands' bottom line in 2015.
Wed, Jan. 14, 11:43 AM
- Victoria's Secret (NYSE:LB) entered China this week with a different focus than the flashy lingerie it's known for in the U.S. and Europe.
- The company will sell luxury accessories and goods, fragrances, and beauty products.
- Three Victoria's Secret Beauty and Accessories stores opened this week in the nation and five more openings are planned for later in the month.
- It's believed the lack of lingerie at VS China is tied to apparel import policies and the more functional stance by women in China to the category.
Sun, Jan. 11, 10:44 AM
- The better-than-expected round of reports on holiday sales in the retail sector has improved the outlook on the profitability of chain stores, according to RetailDive.
- Teen Retailers: Out with dark lighting and logo-centric marketing and in with fast-fashion and online fulfillment. American Eagle Outfitters (NYSE:AEO), Aeropostale (NYSE:ARO), and Abercrombie & Fitch (NYSE:ANF) are finally pulling the right levers, according to analysts. Deb's Shops, Delia's, and possibly Wet Seal (NASDAQ:WTSL) won't be around to make the transition. It's Hail Mary time at American Apparel (NYSEMKT:APP).
- Department stores/specialty apparel: Smaller store counts and restructuring initiatives could be the theme in 2015 as mall traffic stays weak. RetailDive doesn't discount turnarounds at Sears Holdings (NASDAQ:SHLD) and J.C. Penney (NYSE:JCP). Gap (NYSE:GPS), Macy's (NYSE:M), and Urban Outfitters (NASDAQ:URBN) are viewed as ahead of the curve in setting their new agenda in place. Soft early comp compares and lower cotton prices could help lift Zumiez (NASDAQ:ZUMZ), Ann (NYSE:ANN), L Brands (NYSE:LB), Pacific Sunwear (NASDAQ:PSUN), and Express (NYSE:EXPR).
- Drugstores 2.0: Significant changes in the sector have given Walgreen Boots Alliance (NASDAQ:WBA), CVS Health (NYSE:CVS), and Rite Aid (NYSE:RAD) the room to grab more market share in healthcare and grocery. A much worse flu season in the U.S. than a year ago has helped the group get off to a good start.
- Previously: Holiday retail sales something of a revelation (Jan. 8)
Thu, Jan. 8, 7:03 AM
Dec. 10, 2014, 10:22 AM
- The S&P 500 Retail ETF (NYSEARCA:XRT) is up 0.3% today despite the negative action in the broader market.
- A forecast for sustained lower oil prices is the major reason for the upswing.
- Top 20 XRT holdings showing gains: Limited Brands (LB +0.6%), Whole Foods Markets (WFM +0.4%), Casey's General Stores (CASY +0.3%), Ross Stores (ROST +0.7%), Kroger (KR +0.9%), Advance Auto Parts (AAP +0.4%), Target (TGT +0.4%), Zumiez (ZUMZ +0.3%), CST Brands (CST +1.3%).
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