GLG News by Mr. Mark Sussman, President and Chief Executive Officer
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
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Best Buy remains best bet in consumer electronic sector
February 25, 2008
Best Buy cuts '08 EPS outlook, shares fall | www.retailingtoday.com
- Best Buy’s (BBY) initiative to facilitate the customers need for their consumer electronic needs with their “end to end” solution differentiates them from their major competitors and the big box stores in the CE sector.
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February 21, 2008
TJX profit jumps 47 pct on cost controls | www.businessweek.com
TJX is projecting a growth rate of 12% for the next 3 years. Given the leadership of CEO Carol Meyrowitz and the strong emphasis she gives to the merchandising of the assortments the company should easily be able to achieve this number. There has been a marked improvement in the trading up of in season designer labels aligned with the timely delivery of furnishings, shoes and accessories that is driving the customer into the T.J. Maxx and Marshall’s stores. These 2 divisions account for almost 70% of the top line sales accounting for over $11 billion in sales.
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J.C. Penny American Living launch is impressive but timing may pose problems.
February 21, 2008
JCPenney Announces Launch of American Living, Exclusive Lifestyle Brand | www.marketwatch.com
All the positives written in the article are pretty much on target. The American Living assortment across the classifications is quite impressive. The big problem is that the launch is coinciding with one of the worst economic downturns retail and the macro economy has experienced in the last 20 years.
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Wal Marts top line sales divert attention away from underlying problems
February 20, 2008
Wal-Mart: Fashioning a New Growth Track | www.businessweek.com
Wal – Mart (WMT) barely squeaked out January with a 0.5% comp. store increase. This result is rather dismal given their aggressive promotional activity in January. WMT stores showed a weaker gain than Sam’s club and the International Divisions, although they don’t reveal comp. store sales was up over 20% connoting that the domestic business is in distress.
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February 19, 2008
Retailers trimming back merchandise | www.msnbc.msn.com
- As written in the title of this commentary, assortment planning and merchandise management should no longer be an issue. With the expediency of the new planning software, a strong strategic relationship with each vendor and a merchandising team that keeps good history it is not the “blind” challenge posed 10 -20 years ago.
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Costco is pulling ahead of competition through superior management.
February 19, 2008
Costco to open in Australia in ’09 | www.retailingtoday.com
- Costco debatably has the strongest management team in the vast retail sector. Although this dynamic is probably “baked” into the valuation of the company it is still under rated and yet to be a neutral factor.
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Abercrombie & Fitch is clicking on all cylinders.
February 18, 2008
A&F says 4Q net income up 9% | www.retailingtoday.com
- As written in the article ANF is doing well in a difficult macro economic environment which is beating down the retail sector in particular. - This has been achieved through both creativity, introduction of new product lines, classification extensions and lastly through good operational management both at the store level and most importunately in the merchandising and inventory management.
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Dicks should become dominant Sporting Goods Retailer through aquisition and expansion.
January 17, 2008
Dick's raises 4Q earnings guidance | www.retailingtoday.com
As the majority of retailers are experiencing difficulties due to the macro economic conditions, Dicks Sporting Goods, Inc. (DKS) has yet to feel the squeeze. Although comp. store sales could be stronger, DKS has positioned itself as a head quarters store for their sector while also capturing new market share through expansion and acquisition. (Golf Galaxy)
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November 30, 2007
Sears makes tentative offer for Restoration Hardware | www.chicagobusiness.com
-Sears has done nothing to maximize, let alone exploit the Land’s End Brand. This is really one of the most overlooked stories in the retail sector since the acquisition by Sears.
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Despite October’s strong sales, Saks (SKS) is still a strong candidate as an acquisition target.
November 9, 2007
Saks reports strong October growth | www.retailingtoday.com
Given the brand equity and name prestige of the Saks Fifth Avenue label the company looks to be an attractive target for acquisition given the strength of Neimam Marcus, Nordstrom and Bloomindales.
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American Eagle disappointing 3rd quarter results baked into valuation.
November 8, 2007
Aerie Expands Offering With f.i.t. | www.wwd.com
With American Eagle (AEO) stock price down almost 40% since January the upside should be on the horizon for this down beaten equity. This is a factor of the stock already priced taking into account the poor 3rd quarter results and the pent up demand created by the unusually hot (temperatures at 40 year highs) in the 3rd quarter
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The perfect storm for an imperfect holiday season!
November 7, 2007
EXPERT: WORRIED RETAILERS WILL CUT PRICES EARLY IN SEASON | www.retail-merchandiser.com
With oil prices inching towards north of $100/barrel, housing starts and home resale’s yet to reach their nadir, the spiraling down of the US dollar, the sub prime mortgage debacle hitting blue chips like Citigroup and other industry stalwarts the American consumer will catch cold in their consumer confidence in the next few weeks.
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J.C.Penney (JCP) optimistic and undeterred by current negative holiday spending forecast.
November 5, 2007
JCPenney achieves store growth goal | www.retailingtoday.com
With the B.T.S. boost in sales, JCP believes that their assortment is trend and brand right to mitigate the forecasted tough holiday season. JCP, along with their competition, Kohl’s. Target and the others feel that results for the holiday season may indeed be in consistent with original forecast and plans but given their vast improvement in operating and merchandising they are rightfully bullish on their long term growth and financials
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October 31, 2007
Sector Snap: Electronics Retailers Rise | money.cnn.com
Despite the lower sales of 9.4% (8.6% comp.). Radio Shack Corp. (RSH) posted an operating margin of 7.55% compared to 0.3%, last year. The improvement was the result of controlling the SG&A. Julian Day and his management team are good operators but time will tell if they under stand the merchandising side of this highly competititive sector.
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Tommy Hilfiger move at Macy’s is too little, too late.
October 30, 2007
MACY'S AND TOMMY HILFIGER SIGN STRATEGIC ALLIANCE AGREEMENT | www.retail-merchandiser.com
With all the co branding that Kohls has done, delivered, set on the floor and begun selling along with the American Living line to be introduced at J.C. Pennys, this announcement of an exclusive agreement between Macy’s and Hilfiger is pretty much a yawn.
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The big news at SHLD is that Bill Ackman is making a re in vestment in the company!
October 10, 2007
Sears Brings Back its Wish Book | blogs.reuters.com
Bill Ackman, the investor whiz, sees something in Sears and is putting his money where …………….well, his money is. He is currently putting in an in vestment of 5,000,000 shares which represents about 3.5% of the total company.
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Home Depot returning to basics: #1 initiative is fixing the stores and investing in IT upgrades.
October 1, 2007
Consumer spending slows, retailers take hit | www.nydailynews.com
In listening to what the board had to say at Home Depots (HD) latest meeting it is encouraging that the board members were very candid in their “read & react” of the business and go forward plan. The board basically admitted that HD had historically underinvested in the stores, IT and other CAPEX spending initiatives. The company underinvested resulting in bloated over earnings while their competition (sic: Lowes) has spent time, CAPEX and focus on their operations, stores, IT and merchandise assortments.
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Dick’s is able to sustain exceptional growth despite tough macro economic conditions.
September 17, 2007
Dick's Sporting Goods expects store growth | www.retailingtoday.com
Dicks had a strong 2nd quarter and with a bullish declaration, have boosted their forecasts for the remainder of the year. Dicks had a 7% increase in S.S.S. with a total top line sales > exceeding 38%.
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New campaign at Wal Mart does nothing to change assortments and core issues.
September 13, 2007
Wal-Mart plans to roll out new ad campaign | www.msnbc.msn.com
Wal Mart is changing their 19 year old message of “Always low Prices” to “Save Money. Live Better". The advertising campaign update is a long over do necessity but this campaign appears to be a change for change sake.
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September 10, 2007
Coach to add 40 to high-end domestic store count next year | www.wgsn.com
Since Coach (COH) became independent of their previous owner (Sara Lee Corp.) Lew Frankfort has fully achieved his vision of transforming the company from a commodity driven hand bag and small leather goods wholesaler into an aspirational, multi channel brand. Under the design and fashion conceptualization of Reed Krakoff the brand has established its self as an upper end name, competing more with the likes of Gucci than with Dooney & Bourke. The assortment has widened greatly, the retail division has exploded and the label is now a global nameplate.
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