Close

Target (TGT) and J.C. Penney (JCP) Among Black Friday Winners, Says Deutsche Bank; Disappointments Include Wal-Mart (WMT) and Macy's (M)

November 30, 2015 2:28 PM EST
Get Alerts TGT Hot Sheet
Price: $177.21 +1.45%

Rating Summary:
    25 Buy, 19 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE

Black Friday winners were Target (NYSE: TGT), Kohl's Corp. (NYSE: KSS), J.C. Penney (NYSE: JCP), and Foot Locker (NYSE: FL), said Deutsche Bank analyst Paul Trussell. Wal-mart (NYSE: WMT), Macy's (NYSE: M), and Dillard's (NYSE: DDS) were disappointments, he said.

Overall, Trussell described Black Friday weekend as soft, with shoppers sticking to lists, though weakness was offset by migration to traffic to online.

"We observed several initiatives that we believe successfully drove traffic and sales this year, namely: AMZN moving its Black Friday deals to start Fri., 11/20; TGT offering a $100 gift card with purchase of an Apple Watch; BOPIS at KSS; JCP opening at 3pm (vs. the pack at 6pm); FL’s Week of Greatness offering; and “Buy 3 Get 3 Free” at Bath & Body Works (LB, not covered). On the other hand, missteps that we saw included: WMT holding only a 6pm event (vs. 6pm and 8pm LY); impulse gifts as shoppers appeared focused on their lists; big screen TV’s – after the initial crush dissipated, we saw surplus inventory above 32”; and efforts to entice very high-end shoppers who we think remain elusive," said Trussell.

Discussing winners, the analyst said, "In our view, TGT came out on top with very long lines seen at its Thanksgiving opening and sustained traffic levels well into the night and the weekend, as well as “unprecedented” results online. JCP performed well and gained market share this year, in our opinion, driven by its earlier Thanksgiving opening time and robust soft home goods sales, and good traffic follow-through later in the weekend. KSS attracted a strong crowd as well, with very good levels on Thanksgiving night and through the weekend, and customers cross-shopping the store as small appliances, apparel, footwear, and toys were all popular. Finally, FL was a clear Black Friday morning winner with strong traffic and full price sales being driven by the release of the Jordan Aqua 8."

Commenting on disappointments, Trussell said, "We think WMT's tweak to only a 6pm event on Thursday was a net negative with crowds dissipating far earlier than a year ago. We also saw soft trends in apparel at M and remained concerned about Bloomie’s given weakness among high-end consumers. Finally, DDS, which underindexes online, drove only moderate in-store traffic with a lack of attention-grabbing doorbusters."



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, Analyst EPS View, Retail Sales

Related Entities

Deutsche Bank