Posts related to ‘Apparel’

Black Friday Gimmicks & Desperation, A Win For Consumers (WMT, BBY, COST, TGT, KSS, GPS, M, JWN, MA, AMZN)

We are right at a week away from the highly awaited Black Friday for 2009’s holiday and Christmas season.  As you likely know, this is THE day that retailers look forward to all year and critically depend upon as an anchor to how each retailer’s full year earnings results turn out.  You may already be tired of Christmas ads and the holidays haven’t even arrived yet.  With over 10% unemployment, a recession-end that doesn’t feel like a recession-end, a very tight discretionary spending budget, and a general lack of consumer confidence, it is no surprise at all that the focus for the Holiday Season in 2009 is one of deals and thrift.

These are not in any particular order, but the promotions have been reviewed at Wal-Mart Stores Inc. (NYSE: WMT), Best Buy Co. (NYSE: BBY), Costco Wholesale Corporation (NASDAQ: COST), Target Corp. (NYSE: TGT), Kohl’s Corp. (NYSE: KSS), Gap Inc. (NYSE: GPS), Macy’s, Inc. (NYSE: M), and Nordstrom Inc. (NYSE: JWN).  There is also already promotion between MasterCard Incorporated (NYSE: MA) and Amazon.com Inc. (NASDAQ: AMZN).  Admittedly, this is just a sampling of major outlets.

What is amazing is just how much of the deal-making is already out before the holiday season starts as retailers key off of each other.  It is almost impossible to avoid thinking how such a promotional Christmas and Holiday Season in 2009 is going to add pressure to margins at almost all the first-line retailers.
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Posted on: November 19, 2009 – 12:54 pm in Apparel, Calendar, Editor's Picks, Entertainment, Luxury, Product Review, Retail, , , , , , , , , ,

Thursday Earnings Retail Bonanza (DKS, FL, GPS, ROST, SHLD, BKE, PLCE, WTSLA, WSM, ZUMZ)

The earnings season is mostly winding down, but we still have a slew of retail earnings in the apparel and home categories.  On Thursday alone, we have earnings from Dick’s Sporting Goods Inc. (NYSE: DKS), Foot Locker Inc. (NYSE: FL), Gap Inc. (NYSE: GPS), Ross Stores, Inc. (NASDAQ: ROST), Sears Holdings Corporation (NASDAQ: SHLD), The Buckle (NYSE: BKE), The Children’s Place Retail Stores, Inc. (NASDAQ: PLCE), Wet Seal Inc. (NASDAQ: WTSLA), Williams-Sonoma (NYSE: WSM), and Zumiez, Inc. (NASDAQ: ZUMZ).

We have compiled data and analysis here using Thomson Reuters consensus estimates, recent metrics offered by the companies, relative performance, and more.  As with what we have seen at most retail and apparel earnings this week and last, many of these are richly valued and probably cannot just hope to please the bulls by meeting estimates on cost cutting and inventory management and then giving cautious guidance.
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Posted on: November 18, 2009 – 3:38 pm in Apparel, Calendar, Earnings, Retail, , , , , , , , , ,

Retail & Apparel Earnings Dominate Next Week (SKS, BJ, GYMB, ANN, DKS, FL, GPS, SHLD, PLCE, WTSLA, ZUMZ)

Bull and Bear ImageIt seems that earnings season is winding down, but next week we have many of the key retail and apparel players reporting earnings.  Saks Incorporated (NASDAQ: SKS), BJ’s Wholesale Club Inc. (NYSE: BJ), Gymboree Corp. (NASDAQ: GYMB), and Ann Taylor Stores Corp. (NYSE: ANN) are all reporting next week.  Next Thursday may feel like a retail and apparel earnings bonanza as we have Dick’s Sporting Goods Inc. (NYSE: DKS), Foot Locker Inc. (NYSE: FL), Gap Inc. (NYSE: GPS), Sears Holdings Corporation (NASDAQ: SHLD), The Children’s Place Retail Stores, Inc. (NASDAQ: PLCE), Wet Seal Inc. (NASDAQ: WTSLA), and Zumiez, Inc. (NASDAQ: ZUMZ) all reporting earnings in one day.

We have provided estimates from Thomson Reuters, recent sale store sales data, share performance, and added color on what else to consider where applicable.
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Posted on: November 13, 2009 – 11:36 am in Apparel, Calendar, Earnings, Retail, , , , , , , , , , ,

Macy’s Highlights Value-Performance Conundrum in Dept. Stores (M, JWN, KSS)

Bull and Bear ImageMacy’s Inc. (NYSE: M) is showing just how much of a conundrum there is between today’s retail stock valuations and the reality of what to expect from earnings ahead.  Macy’s had a narrower loss in the last quarter of $35 million, or -$0.08 EPS; but outside of items its earnings were -$0.03 EPS.  Revenues were down over 3% to $5.28 billion. Thomson Reuters had estimates at -$0.07 EPS and $5.25 billion in revenues.    The company did manage solid inventory management controls and its ongoing localized merchandise by region was part of why it raised its sales and earnings guidance for the year.

Still, there are issues between today’s share price versus valuations and where it came up from.  This also highlights issues that lie ahead for Nordstrom Inc. (NYSE: JWN) and Kohl’s Corp. (NYSE: KSS) ahead of their earnings this week.
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Posted on: November 11, 2009 – 10:12 am in Apparel, Earnings, Earnings Warning, Retail, , ,

True Religion: Raised Guidance A Warning (TRLG)

TRLG LogoThe great growth mystery of True Religion Apparel Inc. (NASDAQ: TRLG) might be coming in too light.  After the close of trading, the high-end, or at least high-priced, jean and apparel maker posted earnings of $0.58 EPS on $82.4 million in revenues.  While that is still growth in revenues, this is under the Thomson Reuters estimates of $0.59 EPS and $84.62 million in revenues.  There is “raised guidance” from the company, but there are issues despite revenues being up almost 4% from a year ago.
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Posted on: November 3, 2009 – 4:23 pm in Apparel, Earnings, Earnings Warning,

52-Week High Club

Tempur-pedic International Inc (NYSE: TPX) shares rallied over 3% to a yearly high of $22.29 after the company raised its FY09 estimates yesterday afternoon.

Columbia Sportswear (NASDAQ: COLM) hit a yearly high of $44.41 after the company was upgraded by analysts at Sterne Agee.

Google Inc (NASDAQ: GOOG) shares rallied over 3% to a yearly high of $554.34 after the company beat analysts’ earnings estimates.

Garrett W. McIntyre

Posted on: October 16, 2009 – 4:13 pm in Analyst Calls, Apparel, Earnings, , ,

JoS. A. Bank Expanding Further (JOSB)

JOSB LogoJoS. A. Bank Clothiers, Inc. (NASDAQ: JOSB) is one of the more unique clothing and apparel stocks out there.  The company has managed to grow revenues in recent years, and despite the economy it is expected to grow revenues for each of the next two years if the analysts are correct in their projections.  But this is a short sellers battleground stock and may have created more interest today now that it announced an expansion to its growth plans.
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Posted on: August 25, 2009 – 2:50 pm in Apparel, Retail,

Gap Holds Its Own (GPS)

Gao LogoGap Inc. (NYSE: GPS) is holding its own considering the past few years.  The apparel retail giant reported a slight gain in quarterly earnings, although this is on the heels of a 7% decline in revenue from a year ago.  The company is enjoying the same earnings yield as other retailers via costing cutting and expense management.

The retailer owning the Gap, Banana Republic, and Old Navy earned $228 million,or $0.33 EPS, versus $0.32 EPS a year ago.  Revenue was $3.25 billion, down from $3.5 billion a year ago.  Thomson Reuters had consensus at $0.32 EPS and $3.23 billion in revenues.
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Posted on: August 20, 2009 – 4:26 pm in Apparel, Earnings, Retail,

Crocs Cash For Clunkers Earnings (CROX)

Crocs LogoCrocs, Inc. (NASDAQ: CROX) is soaring in the after-hours session on its earnings report.  The numbers were ahead of plan enough that many might think Crocs was the winner in the “Cash for Clunkers” pact in the auto sector.  The company said revenue fell to $197.7 million from $222.8 million a year ago.  On a non-GAAP EPS, it lost $5.0 million or -$0.06 EPS.  The company’s prior range was $0.31 to $0.15.  Thomson Reuters estimates are -$0.21 EPS and $149.95 million in revenues.  The guidance is much less bad than many expected.
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Posted on: August 6, 2009 – 4:26 pm in Apparel, Earnings, Trading Alert,

Amazon Becomes Shoe Deity, Takes Over Zappos (AMZN)

AMZN LogoThis will seem like a no-brainer when you consider it.  Amazon.com Inc. (NASDAQ: AMZN) is acquiring online shoe leader Zappos.com in a deal said to be worth some $807 million consideration after shares, options, and warrants.  The deal calls for 10 million shares of Amazon.com, and $40 million in cash to go to Zappos.com employees along with restricted stock units.
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Posted on: July 22, 2009 – 3:38 pm in Apparel, Internet, Mergers and Buy Outs, Retail,

Hot Topic: Twilight Can’t Help Forever (HOTT)

Burning Money PicHot Topic, Inc. (NASDAQ: HOTT) is continuing to lose its momentum.  The company had been a huge winner for being tied to the  apparel from the Twilight teen vampire movie.  But apparently vampire envy in apparel can get a stake through the heart too.  The company’s same store sales are shrinking again, and now we have an earnings warning.
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Posted on: July 8, 2009 – 3:15 pm in Apparel, Earnings Warning, Retail,

Nike, Just Barely… Or Almost (NKE)

Nike Logo Nike Inc. (NYSE: NKE) is still trying to find its footing with its dominance during a nasty economy, no pun intended.  The sportswear, apparel, footwear, and equipment giant posted $0.99 EPS on a 7% drop in revenues to $4.7 billion.  We had estimates from Thomson Reuters listed as $0.96 EPS and $4.72 billion in revenue.  Currency and future orders are continuing to be an issue.
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Posted on: June 24, 2009 – 3:24 pm in Apparel, Earnings, Retail,

As The Rich Squirm: A Take of Two Luxury Goods Brands (COH, TIF)

In a recession, the poor get poorer, and as Merrill Lynch study today suggests, the poor get poorer still, which has forced Coach Inc. (NYSE: COH) to make big changes that are helping to separate it from other luxury brands.  This has implications for the likes of Tiffany & Co (NYSE: TIF).
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Posted on: June 24, 2009 – 11:39 am in Apparel, Economy, Luxury, Retail, ,

Crocs Closer To Raising Cash (CROX)

Crocs LogoCROCS Inc. (NASDAQ: CROX) may be closer to a capital raise if an amended filing from tonight clears the bar to allow it to sell securities.  It was just May 22 when it filed to sell up to $75 million in a mixed securities shelf.  If this is cleared, this will allow the company to sell debt, preferred stock, common stock, warrants or purchase contracts.  Tonight came the opinion letter from Faegre  & Benson LLP that should be at least one hurdle for the company to raise cash.

Shares closed down over 7% at $3.68 today, and its 52-week trading range is $0.79 to $10.55. For a comparison, its current market cap is about $308 million.  We have yet to see any formal underwriters named, so this may not be an imminent financing.

You can see the signatures and conditions in the full amended filing.

JON C. OGG

Posted on: June 16, 2009 – 4:11 pm in Apparel, Cult Stock, Secondary Offering,

Gap’s Old Navy Carnage May Be Finally Abating (GPS)

Gap LogoGap Inc. (NYSE: GPS) may be seeing some cheer despite another round of lower earnings and revenues.  The clothing and apparel retailer posted earnings of $0.31 EPS, or $215 million.  This is down from $0.34 EPS a year ago and is slightly above the $0.30 estimates from Thomson Reuters.  Revenues were $3.127 billion, down from $3.38 billion a year ago while estimates were $3.14 billion.  Amazingly, at least some of the downward trends are abating.
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Posted on: May 21, 2009 – 3:12 pm in Apparel, Earnings, Retail,

Is Crocs Becoming The New Bull Market Proxy? (CROX)

crocsIt is true that the most speculative or most battered stocks often rise the most during the initial turnaround and recovery, and to call the latest rally since the March lows a mere recovery would be an understatement of the year.  But while the S&P has recovered 35% from lows and the NASDAQ has recovered by almost 40% from lows, shares of Crocs Inc. (NASDAQ: CROX) have exploded from their lows.  With shares up 14% today at $3.71, CROCs has risen well over 200% from the March lows and is up over 100% in less than one-month.
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Posted on: May 5, 2009 – 11:09 am in Apparel, HI/LOW, Technical Analysis, Trading Alert,

Crocs Tries To Lure Athletes; New Line, Same Look (CROX)

crocs-logoCrocs, Inc. (NASDAQ: CROX) is one of the brands that has come at-risk over its future.  The company is also flying under the “going concern” flag from auditors.  And now it is bringing a new line of shoe for athletic recovery called the “Prepair” designed to help athletes recover following fitness and athletic events.  This line is said to be specifically designed to improve recovery time for recreational and professional athletes alike.
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Posted on: April 27, 2009 – 7:27 am in Apparel, Cult Stock,

Twelve Major Brands That Will Disappear

A number of well-known brands disappeared in the last year in large part due to economic forces. Many of them were in the retail industry, led by Circuit City. ATA and Aloha airlines are gone. Gateway Computers has effectively disappeared after being bought by Acer. It still has a website, but the brand is no longer marketed.

As the recession deepens and stretches out quarter after quarter, more companies will close or will shut divisions. More brands will disappear because their parents firms fold or can no longer afford to support them. Other brands will be obliterated by mergers.

24/7 Wall St. examined 100 large brands that are facing troubled futures. The analysis included records for those brands that are public companies or part of public companies. We considered sales information, information from industry experts, and brand histories. We also looked at the level of competition in each brand’s market and the extent to which that competition is growing. We examined the likelihood that a brand could be sold or spun off in cases where parent companies are in financial trouble.

We have compiled a list of 12 brands that will we believe will not survive until the end of next year. Each brand and the major reasons for its demise are listed along with some of the public information 24/7 Wall St. examined. Read More »

Posted on: April 15, 2009 – 8:39 pm in Airlines, Apparel, Media, Uncategorized, , , , , , , , , , , , , , ,

March’s Retail Winners (BKE, FRED, GYMB, HOTT, JCP, TJX)

money-stack-image20We are still seeing overall weak trends in the retail sector.  This is no shock based upon the overall drop in the economy and the growing army of unemployed workers out there.  But there are  some retail winners out there.  Companies such as Buckle Inc. (NYSE: BKE), Fred’s Inc. (NASDAQ: FRED), Gymboree Corp. (NASDAQ: GYMB), Hot Topic (NASDAQ: HOTT), J.C. Penney Company (NYSE: JCP), and The TJX Companies Inc. (NYSE: TJX)  posted strong March same-store sales.
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Posted on: April 9, 2009 – 8:13 am in Apparel, Retail, Trading Alert, , , , , ,

Moody’s Now Calls J.C.Penney Junk (JCP)

burning-money-pic1Moody’s Investors Service put the heat on the credit ratings of J.C. Penney Co. (NYSE: JCP).  While a cut in the retail sector may not be anything shocking in this climate, this downgrade took the company to “junk” status. The company’s senior unsecured notes were cut by one notch to “Ba1″ from “Baa3.”
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Posted on: April 1, 2009 – 12:38 pm in Analyst Calls, Apparel, Retail,