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.
Taking the final spot on the mens’ portion of New York Fashion Week calendar next month will be none other than @tomford. Though he’s shown his men’s wear in New York in the past, this will mark the first time the designer has shown his men’s collection alone during New York Fashion Week: Men’s. His runway show will debut on February 6 at the Park Avenue Armory. #wwdfashion
London-based couture house @ralphandrusso has certainly been in the spotlight, having its dresses worn by @beyonce, Angelina Jolie, Meghan Markle in her engagement photos and more. For couture, Tamara Ralph focused on ornamentation — think: feathers with chain mail, jet embroidery and clusters of pearls and crystals. See the rest of the collection on WWD.com #wwdfashion #couture (📷: @giovanni_giannoni_photo)
Minnie Mouse celebrated her 90th birthday by getting her own star on the Hollywood Walk of Fame. For her celebratory luncheon, @coach’s creative director @stuartvevers dressed her in a custom made prairie dress, complete with Vever’s take on the polka dot – black sequined versions – under a cropped motorcycle jacket. The designer also put his own mark on Minnie’s classic red shoes, infusing the color with sparkles and adding some Coach crystals. “We chose colors that were very Minnie and also represented quintessential Coach elements,” said Vevers. #wwdfashion #nationalpolkadotday (📷: George Chinsee)
@nickjonas is unveiling his first-ever apparel collection through a partnership with John Varvatos. The limited-edition capsule, which makes its debut in spring, also marks the first time the designer has collaborated with anyone on a line. “The process in working with Nick is amazing. It’s inspiring to be around someone who is not only connected with the trade that they do, but also with what’s happening in the environment around him, and how that connects to what we do with style,” said Varvatos. (RG: @johnvarvatos) #wwdfashion
@margotrobbie steps out onto the red carpet wearing @miumiu. The actress is nominated for “Outstanding Performance by a Female Actor in a Leading Role” in “I, Tonya” at the #SagAwards. (📷: Stewart Cook) #wwdfashion
For @massimogiorgetti of @msgm, the Nineties are his favorite decade. “They had a huge impact on my personal growth. What I like of the Nineties is that they are not so precise in terms of style as other decades…there was actually a bit of everything,” he said. As seen on MSGM’s Spring 2018 show: tie-dye and a bit of grunge, two styles that are synonymous with the decade #wwdfashion #wwddecades (📷: @kukukuba)