Nomura Securities Retail Recap & Revisions: Mixed Results in January; Adjusting Estimates
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Nomura Securities Retail Recap & Revisions: Mixed results in January; adjusting estimates.
Analyst, Paul Lejuez, said, "The month was mixed, with the teens (Abercrombie (NYSE: ANF), Wet Seal (Nasdaq: WTSLA)) reporting very weak results, while the off-pricers continued their momentum. Limted (NYSE: LTD) had the biggest comp beat vs. a very difficult comparison, though the EPS revision was not as impressive (M was the opposite). GPS again posted weak topline results, but guidance was above consensus, likely helped by expense reductions. Based on the Jan sales reports and our takeaways from calls with mgmt, we are reducing our estimates for WTSLA. We are raising our estimates for GPS and KSS and we are raising our estimates and TP for Ross Stores (Nasdaq: ROST) and TJX Cos (NYSE: TJX).
The Gap (NYSE: GPS): raising F11E from $1.49 to $1.54 and our F12E from $1.87 to $1.93
Kohl's (NYSE: KSS): raising our F11E from $4.22 to $4.29 and our F12E from $4.52 to $4.59
Ross Stores (Nasdaq: ROST): raising our F11E from $2.84 to $2.86 and our F12E from $3.23 to $3.35; TP from $47 to $53 (~15.5x our F12E)
TJX Cos (NYSE: TJX): raising our F12E from $4.51 to $4.60; TP from $64 to $72 (15.5x our F12E EPS)
Wet Seal (Nasdaq: WTSLA): reducing our F11E from $0.20 to $0.19 and our F12E from $0.19 to $0.16
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Analyst, Paul Lejuez, said, "The month was mixed, with the teens (Abercrombie (NYSE: ANF), Wet Seal (Nasdaq: WTSLA)) reporting very weak results, while the off-pricers continued their momentum. Limted (NYSE: LTD) had the biggest comp beat vs. a very difficult comparison, though the EPS revision was not as impressive (M was the opposite). GPS again posted weak topline results, but guidance was above consensus, likely helped by expense reductions. Based on the Jan sales reports and our takeaways from calls with mgmt, we are reducing our estimates for WTSLA. We are raising our estimates for GPS and KSS and we are raising our estimates and TP for Ross Stores (Nasdaq: ROST) and TJX Cos (NYSE: TJX).
The Gap (NYSE: GPS): raising F11E from $1.49 to $1.54 and our F12E from $1.87 to $1.93
Kohl's (NYSE: KSS): raising our F11E from $4.22 to $4.29 and our F12E from $4.52 to $4.59
Ross Stores (Nasdaq: ROST): raising our F11E from $2.84 to $2.86 and our F12E from $3.23 to $3.35; TP from $47 to $53 (~15.5x our F12E)
TJX Cos (NYSE: TJX): raising our F12E from $4.51 to $4.60; TP from $64 to $72 (15.5x our F12E EPS)
Wet Seal (Nasdaq: WTSLA): reducing our F11E from $0.20 to $0.19 and our F12E from $0.19 to $0.16
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