Dec. 26, 2013, 12:45 PM
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. 6, 2013, 12:48 PM
Dec. 6, 2013, 11:05 AM
- Pacific Sunwear (PSUN +15.2%) shares are up sharply after the company beat expectations on the top-line in Q3 and forecast comps momentum to continue in Q4. A string of other retailer misses may also be buoying the market's reaction.
- Comparable store sales grew 1% Y/Y. The company ended the quarter with 635 stores, a 13.4% Y/Y decline.
- Gross margin of 25.0% fell 300 bp from Q3 2012.
- Management guides for Q4 revenue of $216M-$225M (vs. consensus of $218.7M) on comps of 1% to 5% and EPS of -$0.17 to -$0.12 (-$0.11).
- PR, conference call (transcript)
Dec. 6, 2013, 9:14 AM
Dec. 5, 2013, 5:41 PM
Dec. 5, 2013, 4:10 PM
Dec. 5, 2013, 12:10 AM
Dec. 4, 2013, 5:35 PM
Dec. 4, 2013, 10:10 AM
- A negative report from Express (EXPR -20.7%) on Thanksgiving week sales isn't going unnoticed by apparel peers.
- The comments from execs with Express mirror some of the concerns of retail analysts on promotional activity in the sector and sluggish foot traffic. Earlier: Nomura warns on inventory challenges.
- Related ETFs: XLY, VCR, FXD, RCD, FDIS, PSCD, PEZ
- Decliners: Francesca's (FRAN) -2.3%, Gap (GPS) -1.6%, Destination XL (DXLG) -1.4%, Pacific Sunwear (PSUN) -3.2%, Buckle (BKE) -1.1%, American Eagle Outfitters (AEO) -2.5%, Aeropostale (ARO) -3.1%, American Apparel (APP) -1.7%, Abercrombie & Fitch (ANF) -1.9%.
Nov. 15, 2013, 9:05 AM
- Analysts with Mizuho try to separate the wheat from the chaff in retail with a bevy of initiations.
- The Japanese investment firm sees outperformace in the e-commerce business of select retailers as helping them best holiday sales forecast.
- Started at Buy: ANN, EXPR, GPS, PLCE, PSUN, URBN.
- Started at Neutral: ANF, ARO, AEO, BEBE, CHS, FRAN, GES, LTD, LULU, MW, TLYS, ZUMZ.
Nov. 8, 2013, 11:12 AM
- Some retail analysts aren't getting giddy about the powerful sales reports turned in by Gap and L Brands.
- Though management of both firms pushed the right levers to cut costs and drive sales with promotions, the gambit could run its course with underlying sales trends weak, warn skeptics.
- The other side of the argument is that Gap and L Brands won market share at the expense of downtrodden mall rivals that failed to see their promotions click. The pair are also well-positioned to take advantage of the trend toward e-commerce shopping in apparel.
- Related stocks: AAP, AEO, ANF, JCP, JNY, JWN, KSS, LTD, M, URBN, PSUN, BKE, WTSL, GPS.
Nov. 6, 2013, 9:27 AM
- A disconcerting report on sales and margins from Abercrombie & Fitch could cut a wide swath through retail apparel stocks.
- Slow mall traffic and teenagers seemingly bored with fashion have forced firms in the sector to get more promotional.
- On watch: AEO, CHS, CACH, BKE, LTD, ANN, BODY, WTSL, ARO, TLYS, ZUMZ, PSUN, BEBE.
Oct. 16, 2013, 7:47 AM
- A guidance cut from Wet Seal (WTSL) could be repeated across the retail sector as weak mall traffic and heightened promotional activity take a wrecking ball to sales targets.
- After plenty of gloomy forecasts from retail analysts on Q4 store traffic and sales, the warning from Wet Seal seems to confirm the trend is downward.
- WTSL -8.9% premarket.
- On watch: BKE, ANF, ZUMZ, GPS, URBN, GES, PSUN, EXPR, ARO, PLCE, TLYS, CHS.
Oct. 15, 2013, 11:05 AM
- The latest read on retail sales for October showed a decent 3.2% Y/Y gain, but it's how the industry got there that could be a concern.
- Rebook says promotional activity picked up as apparel retailers looked to clear inventory ahead of the holiday season.
- Specialty retailers (EXPR, RUE, ZUMZ, PSUN, ARO, AEO, ANF, CACH, BODY, CHS, CWTR, NWY, BEBE, ANN, CBK) in particular have been increasing markdowns and discounting activity in Q4 as they clear space for winter lines.
Oct. 10, 2013, 9:11 AM
- Mall-based retailers reported a slew of disappointing monthly sales reports this morning with Zumiez (ZUMZ), Buckle (BKE), and American Apparel (APP) all showing a monthly decline in comparable store sales during September while L Brands (LTD) scrounged out a 1% gain but missed estimates.
- Gap (GPS) reports its monthly tally after the bell, but the overall weakness in retail already shown could tip sentiment.
- On watch: AEO, ANF, CHS, URBN, TLYS, PSUN, WTSL, EXPR, RUE.
PSUN vs. ETF Alternatives
Pacific Sunwear, is a specialty retailer rooted in the action sports, fashion and music influences of California. It sells a combination of branded and proprietary casual apparel, accessories and footwear designed to appeal to teens and young adults.
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