Wells Fargo on Consumer Retail: July Mixed - Summer Clearance, Now B-T-S (AEO, ARO, ANF, GPS, LTD, ROST & TJX)
Tweet Send to a FriendGet Alerts AEO Hot Sheet
Price: $19.19 +0.16%
Rating Summary:
16 Buy, 10 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 21
Rating Summary:
16 Buy, 10 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 12 | Down: 19 | New: 21
Trade AEO Now!
Wells Fargo on Consumer Retail: July Mixed - Summer Clearance, Now B-T-S
Wells analyst, said, "Specialty retailers are scheduled to report July same-store sales on Thursday, August 2. We think sales trends were mixed (FNP noted that July has been inconsistent). The first half of the month was driven by clearance; inventory levels were lean overall which could mean softer sales, but better margins. The second half of the month saw initial back-to-school (BTS) floor sets which we think drove some conversion in fashion items (printed and colored denim). Going into August, we think lower gas prices and a new fashion trend could drive strong BTS."
"We are modeling comps up 5% for American Eagle (NYSE: AEO) and 3% for Aeropostale (NYSE: ARO) for Q2 (including ecommerce), in line with consensus, but we see upside to high-single digits and mid-single digits, respectively, and a few pennies of upside to Q2 EPS consensus estimates...We are modeling Abercrombie & Fitch (NYSE: ANF) Q2 comps down 4% (excluding DTC); consensus is down 5%...For Gap (NYSE: GPS), our July comp estimate is up 4%, in line with consensus...For Limited (NYSE: LTD), our July comp estimate is up 7%, slightly above consensus of 6.3%...For the off pricers, our comp estimate is up 4% for both Ross Stores (Nasdaq: ROST) and TJX Cos (NYSE: TJX). Consensus estimates are up 4.0% for ROST and 4.6% for TJX...We think both ROST and TJX could raise Q2 2012 EPS guidance by a few pennies. Our Q2 EPS estimate for ROST is $0.78, Q2 EPS estimate for TJX is $0.53."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Wells analyst, said, "Specialty retailers are scheduled to report July same-store sales on Thursday, August 2. We think sales trends were mixed (FNP noted that July has been inconsistent). The first half of the month was driven by clearance; inventory levels were lean overall which could mean softer sales, but better margins. The second half of the month saw initial back-to-school (BTS) floor sets which we think drove some conversion in fashion items (printed and colored denim). Going into August, we think lower gas prices and a new fashion trend could drive strong BTS."
"We are modeling comps up 5% for American Eagle (NYSE: AEO) and 3% for Aeropostale (NYSE: ARO) for Q2 (including ecommerce), in line with consensus, but we see upside to high-single digits and mid-single digits, respectively, and a few pennies of upside to Q2 EPS consensus estimates...We are modeling Abercrombie & Fitch (NYSE: ANF) Q2 comps down 4% (excluding DTC); consensus is down 5%...For Gap (NYSE: GPS), our July comp estimate is up 4%, in line with consensus...For Limited (NYSE: LTD), our July comp estimate is up 7%, slightly above consensus of 6.3%...For the off pricers, our comp estimate is up 4% for both Ross Stores (Nasdaq: ROST) and TJX Cos (NYSE: TJX). Consensus estimates are up 4.0% for ROST and 4.6% for TJX...We think both ROST and TJX could raise Q2 2012 EPS guidance by a few pennies. Our Q2 EPS estimate for ROST is $0.78, Q2 EPS estimate for TJX is $0.53."
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Morgan Stanley Maintains Bullish Stance on Walter Energy (WLT)
- UPDATE: Macquarie Downgrades Sprint (S) to Neutral
- Gabelli Downgrades Nexstar Broadcasting Group (NXST) to Hold
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Retail SalesRelated Entities
Wells Fargo
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
