Black Friday Kings or King of Fools? (JCP) (M) (WMT) (AEO)
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Price: $0.18 --0%
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Wal-Mart Stores Inc. (NYSE: WMT), Macy's, Inc. (NYSE: M), and J. C. Penney Company, Inc. (NYSE: JCP) were the winners on Black Friday, thinks analyst Paul Trussell of Deutsche Bank.
"In our view, WMT took the cake with an impressive one-hour guarantee on 21 items and sell-outs of the majority of its Door Buster deals, despite having large quantities available," said Trussell. "Macy's traffic was consistently strong throughout the weekend from our checks with women's apparel, shoes, handbags, and home leading the charge. We have confidence that 3Q trends have continued into 4Q and are modeling 3.3% SSS accordingly."
Regarding J. C. Penney Trussell said, "While we were not impressed by traffic relative to peers, we do believe JCP will be declared a winner at the end of the season given it benefits from an additional 10 hours of BF shopping (8PM opening Thursday vs. 6AM Friday opening LY), a strong online presence, and the overall return to a promotional strategy. We are modeling Nov. SSS up 9%."
Analyst Paul Lejuez of Wells Fargo was less optimistic.
"Is it good that retailers are fighting with each other to see who can sell the most at 50 or 60% off? It says something about the state of the consumer and the need for promotions to drive traffic," he said.
Lejuez noted a few standouts including American Eagle Outfitters, Inc. (NYSE: AEO), Bath and Body Works, Macy's, and Anthropologie (Nasdaq: URBN).
"Conversely, Abercrombie & Fitch (NYSE: ANF) concepts did not seem to be getting their fair share of traffic. Perhaps it was because A&F and Hollister stores only offered 40% off the entire store compared to 50% at AEO and 50-70% at Aeropostale (NYSE: ARO)," said the analyst.
For an analyst ratings summary and ratings history on J. C. Penney click here. For more ratings news on J. C. Penney click here.
Shares of J. C. Penney closed at $10.19 yesterday.
"In our view, WMT took the cake with an impressive one-hour guarantee on 21 items and sell-outs of the majority of its Door Buster deals, despite having large quantities available," said Trussell. "Macy's traffic was consistently strong throughout the weekend from our checks with women's apparel, shoes, handbags, and home leading the charge. We have confidence that 3Q trends have continued into 4Q and are modeling 3.3% SSS accordingly."
Regarding J. C. Penney Trussell said, "While we were not impressed by traffic relative to peers, we do believe JCP will be declared a winner at the end of the season given it benefits from an additional 10 hours of BF shopping (8PM opening Thursday vs. 6AM Friday opening LY), a strong online presence, and the overall return to a promotional strategy. We are modeling Nov. SSS up 9%."
Analyst Paul Lejuez of Wells Fargo was less optimistic.
"Is it good that retailers are fighting with each other to see who can sell the most at 50 or 60% off? It says something about the state of the consumer and the need for promotions to drive traffic," he said.
Lejuez noted a few standouts including American Eagle Outfitters, Inc. (NYSE: AEO), Bath and Body Works, Macy's, and Anthropologie (Nasdaq: URBN).
"Conversely, Abercrombie & Fitch (NYSE: ANF) concepts did not seem to be getting their fair share of traffic. Perhaps it was because A&F and Hollister stores only offered 40% off the entire store compared to 50% at AEO and 50-70% at Aeropostale (NYSE: ARO)," said the analyst.
For an analyst ratings summary and ratings history on J. C. Penney click here. For more ratings news on J. C. Penney click here.
Shares of J. C. Penney closed at $10.19 yesterday.
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