SPDR® S&P Retail ETF
Lululemon: The Outliers Affecting LULU’s Stock Price Movement
On June 11, Lululemon Athletica (LULU) filed a shelf prospectus with the US Securities and Exchange Commission (or SEC).
Do Restaurant Operators Expect to Increase Capex in 2H15?
The expected capital expenditure index increased by 1% to 101.7 in April from 100.7 in March.
Why TJX Companies Might Post Tepid Earnings Growth in 2Q16
TJX Companies (TJX) will announce its results for the second quarter of fiscal 2016 on August 18. The second quarter ended on August 1, 2015.
Valuing Carter’s performance versus other apparel companies
Key trends could benefit Cartier and its peers. But weak consumer demand and intense competition—especially from online retailers—remain headwinds.
It Was a Festive Holiday Season for Signet Jewelers
On January 7, 2016, Signet Jewelers (SIG), the world’s largest retailer of diamond jewelry, announced its broad-based success in the holiday season with revenue of $1.9 billion.
US Retail Sales Flat in April on Rising Oil Prices, Yet XRT Up 1%
Retail sales in the United States in April didn’t see any growth over March’s sales figures. But the jobless claims reading brought some positive news for the consumer sector.
US Dollar Index Fell on Weak Economic Data
The US Dollar Index fell to 93.8 before closing on October 14. It fell due to the release of weak domestic data in the form of the PPI and retail sales.
July’s US Retail Sales Meet Estimates
On August 13, 2015, US retail sales came in at expected levels for July. The increase in the retail sector was broad-based.
Flat Consumer Spending May Cast a Shadow over Department Stores
According to the BEA, consumer spending remained essentially unchanged despite a 0.3% rise in real disposable income stemming from a higher savings rate.
How a Slowing Economy Impacts the US Labor Market
The health of the US labor market is possibly the primary reason the FOMC (Federal Open Market Committee) had confidence to raise interest rates in December 2015
The Redbook shows strength in retail sales due to a late Easter
The Redbook showed some strength in same-store sales during the April 19 week by recording a year-on-year rate of +3.7%.
Kohl’s Stock Fell 18.8% on News of Weak Fiscal 4Q15 Sales
As of February 4, 2016, 14 of the 24 analysts covering Kohl’s have a “hold” recommendation for the stock, eight analysts have a “buy” recommendation, and two analysts gave a “sell” recommendation.
Why Family Dollar’s profits tumbled 33% in the third quarter
Comparable store sales for the 13-week period decreased 1.8% as a result of fewer customer transactions—sales in the 3Q14 were strongest in the Consumables category, driven primarily by strong growth in refrigerated or frozen food and tobacco.
Will Macy’s and Its Peers Rejoice This Holiday Season?
According to data released by the NRF (National Retail Federation) on December 14, 2016, retail sales rose 5.0% on a year-over-year basis in November.
June Oil Price Rebound Affects Auto Companies and Retail Sales
The SPDR S&P Retail ETF (XRT) shed 0.42% on July 14 as retail sales figures in the United States came in way below expectations.
Inflation Remains Subdued
Inflation remains subdued by all measures. Since inflation is way below the Fed’s long-term target, the Fed can afford to keep interest rates lower for a little longer.
Will consumer spending affect the yield curve and Fed funds rate?
The Bureau of Economic Analysis will release its personal income and outlays report for March on Thursday, May 1. The report measures individuals’ income and expenditure levels.
Rising Competition Tapers Kroger’s Fiscal 1Q18 Margins
Kroger’s margins have been under pressure from rising competition and deflation over the past couple of quarters.
Best Buy’s 1Q16 Revenue Declines, But Still Exceeds Estimates
Best Buy’s 1Q16 revenue growth was driven by strong demand for large-screen televisions, mobile phones, and major appliances. Best Buy is one of the few pure-play consumer electronics retailers to survive the recession.
Will the Euro Continue Its Momentum?
Markets will remain focused on the ECB policy meeting scheduled for Thursday this week.
Dollar Tree’s Ratings and Stock Market Performance
Dollar Tree (DLTR) stock didn’t show much momentum even though the company met top and bottom line expectations.
Estée Lauder Sees Positive Outlook in China
International brands such as Estée Lauder (EL), L’Oréal (LRLCY), Procter & Gamble (PG), Shiseido (SSDOY), and Nivea (BDRFF) dominate the cosmetics market in China.
July Jobs Report: Strong Numbers amid Trade Tension
The Department of Labor released the July jobs report on Friday morning. Amid the trade tensions, the July jobs report brought relief.
The Tails Of The Yield Curve May Provide Value
The tails of the yield curve may provide more value due to low inflation.
Dover Corporation: Growing by Acquiring
Since its inception, Dover Corporation (DOV) has followed an acquisition-based growth strategy. The company has acquired over 100 manufacturing companies since 1955, and it currently manages close to 30 independently operating companies under its umbrella.
Sluggish Wholesale Trade Sales in US Keep Inventory Build-Up Low
According to the US Census Bureau, wholesale inventories stood at $585.9 billion at the end of October.
Restoration Hardware’s New Luxury Retail Mantra: Bigger Is Better
On its 1Q16 earnings call, Restoration Hardware unveiled RH Modern, a new luxury retail concept store. It will be six to eight times the size of its other stores.
Pricing Impact Of A Potential Staples-Office Depot Combination
Pricing pressures come from rival superstores as well as a variety of discount stores and online retailers. Therefore, a merger likely won’t result in higher prices for consumers.
Lululemon Shows Sports Apparel Is Outpacing Retail Sector Growth
Sports apparel as a category has been outpacing growth in 12 other retail segments for several months now. This should benefit sales for Lululemon (LULU).
Dover Refrigeration & Food Equipment: Keeping It Cool
The Dover Refrigeration & Food Equipment unit is a major provider of refrigerated display cases and kitchen equipment such as cookers, mixers, braising pans, and packaging and processing solutions for the meat and poultry business.
Walmex – Walmart’s Recent Initiatives In Mexico
Walmex also looking at higher sales through the e-commerce channel. It launched e-commerce in Mexico in 2013. The growth has been moderate.
Coach Raises Guidance on Upbeat Results from Stuart Weitzman
Stuart Weitzman’s results were one of the brightest spots in Coach’s (COH) fiscal 2Q16 earnings release.
Porter’s Five Forces Analysis for the US Grocery Industry
Developed by Harvard Business School professor Michael E. Porter, Porter’s Five Forces Model is used for assessing the nature of competition and attractiveness of an industry.
Target and Walmart at Opposite Ends of Earnings Guidance
In its 2Q16 earnings release, Walmart revised its projections for fiscal 2016. It’s now expecting diluted EPS of $4.40–$4.70, down from its earlier guidance of $4.70–$5.05.
A Porter’s Five Forces Analysis for Whole Foods after Fiscal 2015
Competitive rivalry is extremely strong in the organic and natural food industry. More companies are entering and expanding their presence in the industry.
Cabela’s Top Line Rose in Fiscal 1Q16: What’s Next?
CAB rose 0.17% to close at $52.28 per share on April 28. Here’s what you need to know.
Analysts Downgrade Macy’s Stock on Weak Outlook
Bank of America Merill Lynch downgraded Macy’s stock to an “underperform” after the department store reported weak holiday sales.
State of the Jewelry Industry in 2015: Growth and Challenges
Trends shaping the jewelry industry include Increasing demand for branded jewelry and an increased focus on e-commerce sales.
Why Tiffany Stock Plunged
Tiffany (TIF) disappointed investors with its comparable-store sales numbers in 1Q17. After results were announced, the company’s stock plunged ~9%.
How the Latest Tariffs Could Affect US Businesses and Consumers
Both US (SPY) (IVV) businesses and consumers are expected to be negatively affected by the most recent round of trade tariffs.
Change Is Needed In The Office Supplies Retail Segment
Although the office supplies industry is a niche retail segment, it’s highly fragmented. The industry has many players. The rivalry between the players is intense.
Is 3M Stock Bearing the Burden as the Trade War Intensifies?
Since 3M Company’s second-quarter earnings release on July 25, its stock is down 7.5% as of August 5. What’s causing the fall?
Times Change: Why the Dow Theory Is Less Applicable Today
The economic make-up of the US has changed significantly over the past century, making the Dow Theory less applicable today than it might once have been.
Here’s Why Walmart Stock Is Trading at Record Levels
Walmart (WMT) is trading at record highs thanks to its healthy sales growth and its ability to maintain market share despite heightened competition in the grocery space.
Why Ross Stores Isn’t Keen on E-Commerce Growth
Ross Stores, which falls in the moderate off-price space, does not seem to be keen on expanding its e-commerce business and does not have an online store.
JCPenney’s Stock Up by 42% in 2016 as Analysts See More Upside
Of the 26 analysts covering JCPenney’s stock, 11 analysts have a “buy” recommendation and 11 analysts have a “hold” recommendation. Four analysts have issued a “sell” rating.
A Must-Read SWOT Analysis of Sprouts Farmers Market
While Whole Foods Market is struggling at the hands of giants like Kroger and Wal-Mart, Sprouts has been growing steadily in same-store sales and margins.
Why Office Depot And OfficeMax Were A Merger Of Equals
Starboard’s interest in the office supplies industry is well known. Starboard disclosed a ~14.8% stake in Office Depot (ODP) in 2012. It has been pushing ODP to reduce its store size and cut costs.
Tiffany’s Competitive Position: Porter’s Five Forces Analysis
Porter’s Five Forces model suggests that there are five forces that determine the attractiveness and long-term profitability of an industry or a sector.
How Innovation Is Driving Sales at Nike
While Nike derives most of its revenues from footwear products, it also sparks innovation in apparel technologies, such as Aeroloft, Dri-FIT, and Nike Pro.
Nordstrom Completes Sale of Credit Card Portfolio to TD Bank
On October 1, Nordstrom (JWN) announced the completion of the sale of its credit card portfolio to Toronto-Dominion Bank (TD), also known as TD Bank.
ETFs with holdings in Macy’s: How should I invest?
Some ETFs with holdings in Macy’s include one of the most popular ETFs in this category, the Consumer Discretionary Select Sector SPDR Fund (XLY).
The Week Ahead: Key Dates in Consumer from May 22–26, 2017
In this part of the series, we’ll look at the important events for the week ahead, from May 22–26, 2017.
Costco’s Industry Positioning: A Porter’s 5 Force Analysis
Costco’s suppliers include companies like PepsiCo (PEP), Procter & Gamble (PG), and the Kraft Heinz Company (KHC). No single supplier accounts for over 5% of revenue.
Walmart’s Strategic Business Priorities and Their Impact
Walmart’s strategic priorities include building omni-channel capabilities, growing its top line faster, focusing on core assets and capital discipline, and generating stronger shareholder returns.
Santa Could Yet Bring Cheer To Holiday Retail Sales
We think the final tally for holiday retail sales could differ from the gloomy picture some of the initial estimates had painted.
JCPenney’s Sales Fall in 1Q16: How Did It Trim Its Losses?
JCPenney (JCP) was able to trim its losses in 1Q16 ended April 30, 2016, despite lower sales.
Can Malaysia’s Improved Retail Sales Support Economic Growth in 2017?
Retail sales in Malaysia rose 13.9% YoY (year-over-year) in June 2017, compared with its 13.6% gain in May 2017.
Walmart’s Key Challenges In Its Business Environment
The NLRB filed a complaint last January. It accused Walmart of violating labor laws. The NLRB claims that the retailer acted against workers who joined unions.
What Investors Need to Know about Valuation Price Multiples
Valuation price multiples are used in the relative valuation technique. This is the most common method used by Wall Street to value stocks.
What Bill Miller Thinks about Amazon’s Business Model
Whole Foods Market (WFM) has returned nearly 40% on a year-to-date basis as of June 20, 2017.
Hurdles in Tiffany’s Growth: Weaknesses and Threats
Since it’s a luxury brand, Tiffany & Co.’s products are priced high, with no promotions. Thus, Tiffany products may be out of reach for many customers.
How Ross Stores Made Its Mark in Off-Price Retailing
Ross Stores, a major player in the US off-price retail space, sells apparel, accessories, footwear, and home fashions at 20–60% discounts.
A Bird’s-Eye View of Orbitz Worldwide’s Full Year Performance
In fiscal 2014, Orbitz posted double-digit revenue growth on the back of strong hotel bookings. It experienced a 10% year-over-year growth in total revenues to $932 million.
Under Armour’s Performance Relative to the Sportswear Industry
Under Armour (UA), which overtook Adidas (ADDYY) last year as the number two US sportswear company, cemented its position in 1Q15.
Porter’s Five Forces Analysis for SUPERVALU
The Porter’s Five Forces model is extensively used for assessing the nature of competition and attractiveness in an industry.
Sears Holdings’ Revenue Fell, Income Rose in Fiscal 3Q15
Sears has a market cap of $2.0 billion. Its YTD price movement both rose and fell in fiscal 2015. After it released its fiscal 3Q15 report, SHLD fell by 6.9%.
Declining Wholesale Trade Sales May See Slide in Future Inventory
For October 2015, wholesale trade sales were $1,317.7 billion. They were down 0.2% in October from the previous month and fell 2.7% from a year ago.
Why Tiffany & Co. Is More Profitable than Its Competitors
Since 2006, Tiffany’s margins have been on the higher side compared to its peers, including Signet Jewelers and Fossil, in the retail jewelry industry.
Why Stanley Security Changed Gears
Profit margins in Stanley Security increased from 10.2% in 2013 to 11.4% in 2015.
Why Tiffany Is Spending More on Marketing
Tiffany has been increasing its advertising expenses. In fiscal 2015, it spent $284 million on advertising, marketing, and public and media relations.
Signet Jeweler’s Market Positioning in the Retail Jewelry Industry
Total retail jewelry sales in the US grew at a CAGR of 4.4%, reaching $74.7 billion in 2014. Fine jewelry sales grew at a CAGR of 5%, reaching ~$69 billion.
Mounting Evidence of Inflation Firming Up
The U.S. Commerce Department reported retail sales fell in February for the third month in a row, while the University of Michigan Consumer Sentiment Index jumped to a 14-year high…
Berkowitz’s Fund Establishes Stake in Sears Canada
To counter competitive pressures, Sears Canada sold leases worth $400 million in 2013 and reduced its workforce by 3,000 employees.
March Retail Sales Prove Bullish for Most Categories
Building materials and garden equipment and supplies dealers accounted for ~6.4% of March retail sales. Home furnishing and furniture stores accounted for ~2% of sales.
Could Wage Growth Improve as Employment Picks Up?
The US economy is swiftly adding jobs, with the latest addition of 227,000 jobs in January 2017.
Why We’re Seeing Positive Trends For Mass Merchandisers
US mass merchandisers benefited from lower energy prices at the pump, lower inflation, a competitive pricing environment, and an improving labor market.
Signet Jewelers’ Core Strength: Exclusive Merchandise Offerings
Signet Jewelers has taken on several merchandise initiatives in 2015. It expects its “Ever Us” offering to become a new trend in the jewelry industry.
Why a September Rate Liftoff Seems Likely
Atlanta Fed president Dennis Lockhart recently stated that it would take “significant deterioration in data” for him to reject the idea of a September rate hike.
What Drove Retail Sales Higher in April?
The April retail sales report indicated that the gains were broad-based with nine of the 13 major categories moving higher during the month.
GNC Holdings Reports Mixed 4Q15 Results: Where to This Year?
GNC Holdings (GNC) has a market cap of $2.2 billion. GNC rose by 1.6% to close at $26.98 per share on February 11, 2016.
Analyzing Lululemon’s 3rd Quarter 2014 Financial Results
Lululemon’s latest results were well-received by markets. The stock jumped over 9% after the company released its results on December 11.
Why Lululemon’s Profit Margins Are Trumping The Company’s Peers’
LULU’s gross profit margin slipped from 55.7% in fiscal 2013 to 52.8% in fiscal 2014. The company’s operating profit margin slipped from 27.5% to 24.6%.
Analyzing Lululemon’s Revenues By Geographical Segment
The company grew its revenues at a compound annual growth rate of more than 35% over the past five years to come in at $1.6 billion in fiscal 2014.
October FOMC: Why the Fed’s struggling to achieve its dual mandate
In order to meet both these long-term objectives, the Fed needs to balance the effect of a monetary move on both inflation and changes in unemployment.
Comparing the ICSC, Census Bureau Retail Sales, and Redbook Indexes
The Census Bureau Index is a broad barometer of the retail sales, whereas the Redbook and ICSC Indexes only include chain store sales.
Will falling credit card debt affect stocks like Walgreens?
Consumer credit figures for February will be released by the U.S. Federal Reserve on Monday, April 7. It’s a monthly release, and the headline number for the report is total consumer debt.
This week’s releases are key to the Fed funds rate and yield curve
This week, Wednesday to Friday is crammed with economic releases, many of which will be key data points for the Fed’s April FOMC and have a significant impact on the Fed funds rate and the yield curve.
Why positive economic indicators may point to an earlier rate hike
Market watchers will be paying close attention to Wednesday’s Fed statement for signs of the timing of a Fed rate hike. Our expectation at BlackRock is that there’s a good chance the Fed will change its language.
Analyzing the Redbook and ICSC-Goldman retail sales indices
Retail sales, excluding food services, make up about 27% of the total U.S. GDP. They’re an important driver for economic growth. An uptick in retail sales usually means upside for broad-based equity markets like the S&P 500 Index.
Dollar Tree Q3 Earnings: What’s in Store?
Analysts expect Dollar Tree (DLTR) to report another dismal quarter tomorrow. Let’s look at what’s behind their Q3 earnings forecast.
What’s Driving Sequential Same-Store Sales Growth for Lowe’s?
Lowe’s (LOW) has reported a positive trend in comparable store sales (XRT) for the past ten quarters.
How Lowe’s Is Leveraging Its Omni-Channel Opportunity
Going omni-channel makes natural sense for both Lowe’s and Home Depot. Both retailers have a massive store network in the US, which can double as strategic fulfillment centers.
Can Coach Revive North America Same-Store Sales in Fiscal 2016?
Coach’s (COH) performance in North America remained pressured in the quarter, with sales declining 7% in reported terms to $731 million.
Analyzing Lowe’s YTD Sales Performance in Fiscal 2016
Lowe’s sales performance and growth in fiscal 2016 have been robust so far, with net sales rising by 4.9% and same-store sales rising by 4.6%.
How Has Walmart’s Profitability Dip Affected Its Outlook?
Walmart’s reported operating income margin declined from 5.6% in fiscal 2015 to 5.0% in fiscal 2016.
Has Home Depot Been Making the Right Omni-Channel Moves?
Home Depot is trying to enhance its digital and omni-channel sales. It launched a new website in Mexico and re-platformed its Canadian portal in fiscal 2016.
What’s Driving Record Membership Loyalty at Costco?
Costco has been able to steadily increase the renewal rate in the US and Canada from 88% in fiscal 2010 to 91% in fiscal 1Q16.
What Can We Expect from Nike’s Wholesale Channel in Fiscal 3Q16?
The wholesale channel is the largest channel for Nike’s (NKE) sales.
Analyzing the Investment Fundamentals of Discount Retailer Target
Minnesota-based Target (TGT) is the world’s 11th-largest retailer in terms of sales, according to the National Retail Federation.