Analysts gave mixed opinions on how retail sales will fare this July 4th holiday week and weighed in on other retail news - from an innerwear maker's innovation to lackluster prospects for a golf unit sale.
Analysts gave mixed opinions on how retail sales will fare this July 4th holiday week and weighed in on other retail news — from an innerwear maker's innovation to lackluster prospects for a golf unit sale.
WR Hambrecht + Co Inc. analyst Melissa Otto expects an uptick in retail sales this week on increased tourist traffic thanks to the weak U.S. dollar. Otto said luxury and mass luxury retailers will see the greatest benefits and expects Saks Inc., Polo Ralph Lauren Corp. and Coach Inc. stores to do particularly well.
Otto warns nice weather could be a double-edged sword, keeping shoppers on their feet in walking cities such as New York and San Francisco, but beaching shoppers elsewhere. Otto expects little retail stock movement as workers turn in vacation days.
Meanwhile, Brean Murray Carret & Co. analyst Eric Beder said July 4th is not a meaningful retail holiday, especially as it falls in the middle of peak clearance season.
"I do not think most people view their patriotic duty to shop in the mall," said Beder, who said July 4th's Wednesday calendar appearance further marginalizes shopping prospects as its does not create an extended weekend.
Last week, Beder resumed coverage of Maidenform Brands Inc., shares of which closed Friday up 1.3 percent to $19.86, with a buy rating on the company's "innovative play in a highly defensive category" and "material potential" for top- and bottom-line growth. Beder issued a price target of $25 and said he sees a long-term earnings per share growth rate of 15 percent.
"Maidenform's excellent track record as a product innovator continues to be reflected in each new product that the company brings to market," Beder said in a research note.
On the teen fashion front, Telsey Advisory Group's Dana Telsey noted upgraded product and affordable prices at Aéropostale Inc.'s back-to-school preview. Telsey said the teen retailer's assortment looks "encouraging" and better than in recent years, with an emphasis on polos and fleeces for boys and Bermuda shorts and skinny jeans for girls for the b-t-s shopping season, which kicks off in July. Aéropostale closed Friday down 1 percent to $41.68.
Telsey also commented on media reports that Nordstrom Inc. is close to selling its Façonnable label to a private equity firm for $200 million — and noted the speculated price is below the $350 million Nordstrom paid for the brand in 2000."A potential sale of Façonnable was announced by Nordstrom in early February this year, so the news would not be a big surprise and rather benign to Nordstrom as [a] whole, as well as the impact on the stock," Telsey wrote in a report. Nordstrom shares closed Friday up 1.5 percent to $51.12.
Morgan Keegan analyst Brad Stephens called surf and ski shop Quiksilver Inc.'s decision to buy out the remaining 36 percent of its Cleveland Golf division an "incremental positive" — and said he "can't imagine" the unit being part of Quiksilver this time next year.
"As everyone seems to know that Quiksilver wants to rid itself of the burden, the sale of the business would help to ease investor concerns — no matter the price," Stephens said. Shares of Quiksilver closed Friday up 3.2% to $14.13.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion