Signs of European Recovery, Piper Jaffray Says; 'Stock Selectivity Is Key' (DECK) (CROX) (NKE) (UA) (GPRO) (more...)

Piper Jaffray Global Fashion & Lifestyle Brands research analyst Erinn Murphy is reporting that signs of a European recovery are starting to take hold. Traffic patters remain volatile given global tourism. However, local demand seems to be returning to the markets. Weather in the UK market has been favorable and traffic patterns are moving towards the malls.

Retailers suggest that their promotional patterns built over the last two holiday seasons will likely continue. UK consumers have adapted well to the adoption of America's Black Friday sales. a select few retailers are testing the concept in markets like Spain & Italy.

Piper Jaffray states that they notice that not all brands are seeing strength. Analyst Erin Murphy comments, "...underlying local demand seems to be returning in several markets (UK, Germany). That said, we do not believe all brands are seeing strength in Europe currently and believe DECK (Neutral) is still struggling. We are warming to small-cap Neutral-rated CROX and favor NKE, GPRO, PVH and UA as ways to play the improving macro backdrop. Athletic, as we reference in a side report this morning, is gaining momentum in Europe."

PiperJaffray says that "Stock-selectivity is key when looking to play potential EU recovery."

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