Feb. 6, 2014, 7:19 AM| Comment!
Feb. 3, 2014, 8:49 AM| Comment!
Jan. 9, 2014, 7:16 AM
- L Brands (LB) reports a light December same-store sales tally in a period in which the retailer increased its promotions significantly.
- SSS brand breakdown: Victoria's Secret +3%; Bath & Body Works +1%; La Senza -7%; L Brands +2%; Victoria Secret's Direct +1%.
- The company says it now expects Q4 EPS of $1.60, compared to previous guidance of $1.67-$1.82 and $1.79 consensus.
Jan. 9, 2014, 7:08 AM
Jan. 6, 2014, 8:58 AM
- Winter storms which dumped over ten inches of snow in a large number of U.S. cities (Boston, Chicago, Detroit, St. Louis, NYC region) has wreaked havoc on mall traffic, according to retail watchers.
- In some major cities, malls were completely closed down due to the extreme snow.
- The extended bout of wintry weather hit right as the sector was looking for a bounce from post-holiday deal shoppers and gift card conversions.
- Analysts think most of the anticipated sales will be recouped, although a lag factor could in play. Apparel sellers could be the hardest hit as inventory starts to look stale.
- On watch: AEO, ANF, ARO, JCP, JWN, KSS, URBN, APP, TLYS, GES, BKE, CHS, ASNA, CWTR, ANN, CBK, NWY, CACH, BODY, WTSL, CATO, BEBE, DDS, LB, PSUN, EXPR, DDS, M, GPS, SHLD.
- Related ETFs: XLY, VCR, FXD, FDIS, RCD, PEZ, PSCD
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. 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. 23, 2013, 9:03 AM
- Warnings on slow store traffic at retailers are being heard far and wide from analysts as more channel checks disappoint.
- Ground zero for promotional activity in the sector appears to be mall-based apparel sellers which are throwing "shocking" deals at consumers to stoke sales and clear inventory.
- Weather has been a factor, but forward-looking insiders also see a paradigm shift. Consumers enabled with mobile devices have taken a hatchet to the amount of their holiday season impulse buying which typically helps retailers drive margins higher on select items at stores.
- On watch: AEO, ANF, ARO, JCP, JWN, KSS, URBN, APP, TLYS, GES, BKE, CHS, ASNA, CWTR, ANN, CBK, NWY, CACH, BODY, WTSL, CATO, BEBE, DDS, LB, PSUN, EXPR.
Dec. 19, 2013, 10:46 AM
- Frederick's of Hollywood (FOHL +31.2%) will go private in a deal which will see holders of the thinly-traded OTC stock receive $0.27 a share.
- The retail chain has been a disaster since hitting a high-water mark in 2009, primarily because it didn't diversify its product lines as Victoria's Secret (LB) did to rousing success.
Dec. 5, 2013, 7:17 AM
- L Brands (LTD) saw Victoria's Secret, Bath & Body Works, and Limited Brands all lose ground during November with lower comparable store sales - while La Senza held level.
- A 9% increase in Victoria's Secret Direct sales kept the falloff from being even worse.
- During the course of the company' fiscal year its store count has increased by 57 to 2,933.
Dec. 5, 2013, 7:08 AM
Dec. 4, 2013, 7:12 AM
- The inventory levels of apparel retailers in the U.S. stand at alarming levels, according to Nomura Equity Research.
- By most accounts, the group didn't perform well over the Black Friday weekend after entering the holiday shopping season at high inventory levels.
- Retailers such as Macy's (M) and Gap (GPS) may have an edge with their strong online fulfillment programs, but the early starts to the shopping season exacerbate inventory issues. Some retail chains will start selling spring lines in late December forcing a more promotional stance on older items.
- On watch: AEO, ANF, ARO, JCP, JWN, KSS, URBN, LTD, APP, TLYS, GES, BKE, CHS, ASNA, CWTR, ANN, CBK, NWY, CACH, BODY, WTSL, CATO, BEBE, DDS.
Nov. 20, 2013, 4:31 PM
Nov. 20, 2013, 12:10 AM
Nov. 19, 2013, 5:35 PM
Nov. 15, 2013, 2:05 PM
- Both Lululemon (LULU +0.4%) and Abercrombia & Fitch (ANF -2.1%) stand accused by retail analysts of alienating its customers after execs made ill-timed digs at the plus-sized customers the retailers haven't included in their marketing or sales plans.
- As Lululemon and A&F continue to suffer from negative feedback for their strategies - sales have been strong at Hot Topic (HOTT), Ascena Retail Group (ASNA), and L Brands (LTD) for brands which cater to plus-sized shoppers.
- Tale of the tape (YTD returns): Lululemon -13% and Abercrombie & Fitch -28% vs. Hot Topic +45%, Ascena Retail Group +15%, and L Brands +37%.
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