Paris Attacks to Weigh on European Exposed Global Luxury Retailers - Cowen

Cowen analyst Oliver Chen had a timely note on retail stocks in the wake of the terror attacks in Paris. Chen sees the attacks as negative for global luxury players, given fears of further attacks in Europe may lead to lower store traffic and pressure revenue performance in the region.

In their coverage, retailers with the largest exposure to Europe & the Middle East include: Richemont (38% mix), Fossil (NASDAQ: FOSL) (34% mix); HBC (Germany 31% mix; Belgium 2%); LVMH (27%), Abercrombie & Fitch (NYSE: ANF) (26%), and Kors (NASDAQ: KORS) (20%), among others.

The analyst also has concerns that heightened fears of terrorism may weigh on tourism and add top-line headwinds for those with high exposure to global tourist spending: Tiffany & Co. (NYSE: TIF) (40%+ of NY flagship, ~25% of both US & Europe businesses), HBC (Saks NY flagship 20% of banner sales), and Macy's (NYSE: M) (5% of all flagships).

Meanwhile, the firm worries that the recent events could put pressure on travel demand, yielding downside revenue risk for Tumi (NYSE: TUMI), as travel products drive ~43% of its total revenues.

Europe & Middle East Revenue Penetration Across Cowen's Coverage (Chart)

You May Also Be Interested In

• Fiserv (FI) PT Raised to $175 at TD Cowen
• TD Cowen Reiterates Buy Rating on Edwards Lifesciences (EW)
• Fiserv (FI) PT Raised to $200 at Evercore ISI