Collins Stewart on Softlines Retailers: Off-Price Names Present Buying Opportunity
Tweet
Share
E-mailGet Alerts ROST Hot Sheet
Price: $229.53 -2.2%
Rating Summary:
28 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 38
Rating Summary:
28 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 15 | New: 38
Join SI Premium – FREE
Collins Stewart on Softlines Retailers: Off-Price Names Present Buying Opportunity
Collins analyst said, "We are initiating coverage of Ross Stores (Nasdaq: ROST) and TJX Cos (NYSE: TJX) with buy ratings, Urban Outfitters (Nasdaq: URBN), Limited (NYSE: LTD), Coach (NYSE: COH), and Tiffany & Co (NYSE: TIF) with Neutral ratings, and Gap Inc (NYSE: GPS) with a Sell rating. Overall sales trends for clothing and accessories retailers have improved YTD in 2011, and aggressive promotions will likely drive traffic through the remainder of the holiday season. Off-price retailers and luxury brands have fared well, while the performance of the mid-tier names has been mixed."
"Industrywide retail sales at clothing and clothing accessories stores increased 3.7% on top of +7.8% in November. Retailers generally reported positive November same-store sales results, but those that lagged the trend were largely hampered by less-compelling fashions and less-aggressive promotions. Aggressive discounting and promotions began before the holiday season's unofficial start over Thanksgiving weekend in an effort to to attract budget-concious shoppers in a challenging consumer climate. The promotional efforts drove record sales from Black Friday through Cyber Monday, and an industry survey indicated the amount spent by the average shopper over the holiday weekend also reached new heights. We expect heightened levels of promotions to persist through the holiday season as shoppers continue to seek out value."
Other Highlighted Points Include: 1) Off-price names offer attractive upside potential (ROST & tJX); 2) Cost and fashion concerns challenge full-price retailers (LTD, URBN and GPS); and 3) Visibility is cloudy within the luxury group (COH & TIF)
Collins analyst said, "We are initiating coverage of Ross Stores (Nasdaq: ROST) and TJX Cos (NYSE: TJX) with buy ratings, Urban Outfitters (Nasdaq: URBN), Limited (NYSE: LTD), Coach (NYSE: COH), and Tiffany & Co (NYSE: TIF) with Neutral ratings, and Gap Inc (NYSE: GPS) with a Sell rating. Overall sales trends for clothing and accessories retailers have improved YTD in 2011, and aggressive promotions will likely drive traffic through the remainder of the holiday season. Off-price retailers and luxury brands have fared well, while the performance of the mid-tier names has been mixed."
"Industrywide retail sales at clothing and clothing accessories stores increased 3.7% on top of +7.8% in November. Retailers generally reported positive November same-store sales results, but those that lagged the trend were largely hampered by less-compelling fashions and less-aggressive promotions. Aggressive discounting and promotions began before the holiday season's unofficial start over Thanksgiving weekend in an effort to to attract budget-concious shoppers in a challenging consumer climate. The promotional efforts drove record sales from Black Friday through Cyber Monday, and an industry survey indicated the amount spent by the average shopper over the holiday weekend also reached new heights. We expect heightened levels of promotions to persist through the holiday season as shoppers continue to seek out value."
Other Highlighted Points Include: 1) Off-price names offer attractive upside potential (ROST & tJX); 2) Cost and fashion concerns challenge full-price retailers (LTD, URBN and GPS); and 3) Visibility is cloudy within the luxury group (COH & TIF)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Raymond James Starts Southern California Bancorp (BCAL) at Outperform
- Jefferies Downgrades Sunway Healthcare Holdings (SUNMED:MK) to Hold
- GLJ Research Downgrades Fluence Energy Inc. (FLNC) to Hold
Create E-mail Alert Related Categories
Analyst Comments, New CoverageRelated Entities
Collins StewartSign 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!
