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Nomura Securities on Retail Company 10-Ks: Interesting Takeaways from Softlines

April 5, 2012 10:26 AM EDT Send to a Friend
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Nomura Securities on Retail Company 10-Ks: Interesting Takeaways from Softlines

Analyst, Paul Lejuez, said, "After scouring through recently filed 10K’s, we found several interesting takeaways – not necessarily market-moving details but rather things that struck a chord and made us think.

Some Highlights Include:

Abercrombie & Fitch (NYSE: ANF): Op margin (incl corp overhead): US (1)% in F11 vs. 2% in F10, Int’l 14% in F11 vs. 16% in F10, ecom 29% in F11 vs. 35% in F10.

Ann, Inc (NYSE: ANN): Loft AUR down 4% but DPT ($/transaction) +3%, shows that lower prices drove increases in UPT/comps; ATS is moving in same direction.

Chico's (NYSE: CHS): Moving sourcing away from China slower than planned; may be a sign of lower quality outside of China, which many retailers may face.

Gap (NYSE: GPS): Store EBIT margin increased 30bps to 12.8% while direct op
margin decreased 380bps to 19.4%.

Nordstrom (NYSE: JWN): Recognized (but never mentioned until the 10-K) $25MM of goodwill impairment for Haute Look (hurt EPS by $0.06 in 4Q11).

Kohl's (NYSE: KSS): Added a new risk to its risk section about the negative impact of its ecommerce business on its overall profitability.

Tiffany (NYSE: TIF): The TIF/Swatch arbitration is not until October; makes it hard for TIF to take advantage of current strong watch industry trends.




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