Thursday, July 02, 2009

Retailers ax non-core brands to play safe in slump

Reuters

The recession is forcing many U.S. retailers to focus on their key brands and pull the plug on secondary lines -- a move that could have the added benefit of helping them return to their more successful roots.

Wall Street Strategies' Brian Sozzi raised concerns about the future of women's apparel retailer Bebe Stores Inc's "bebe sport" line -- which has been underperforming for the past two years. Bebe did not respond to telephone calls or email seeking comment.

Link to full article: http://www.forexyard.com/en/reuters_inner.tpl?action=2009-07-02T174338Z_01_N0280460_RTRIDST_0_RETAIL-APPAREL-ANALYSIS

Thursday, June 25, 2009

Dress Barn's Purchase Of Tween Brands Lifts Eyebrows

Wall Street Journal

Dress Barn Inc. (DBRN) is buying Tween Brands Inc. (TWB) in a move that is raising eyebrows because of the companies' different merchandise mixes.

The move is also drawing attention as a possible signpost of more mergers in an industry that is looking for ways to get through one of the longest recessions in memory with as few bankruptcies as possible.
The move is especially unusual for the specialty apparel group, where retailers generally do not own their stores, which means there is no hard asset value in mergers, just the taking on of operations and inventory, said Brian Sozzi, retail analyst at Wall Street Strategies.

That can lessen the benefits of doing this kind of deal, Sozzi said. "This seems more of a cost-cutting move" that may give the companies' better terms in making purchases as a larger entity.

Link to full article: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=200906251218dowjonesdjonline000784&title=dress-barns-purchase-of-tween-brands-lifts-eyebrows

Wednesday, June 24, 2009

Investment Firm Boosts Abercrombie Stake

Barron’s

ABERCROMBIE & FITCH'S (ticker: ANF) stock may have fallen out of fashion, but one European firm thinks it's still a good fit, bagging an additional 209,000 shares.

Wall Street Strategies analyst Brian Sozzi noted that under normal circumstances, he would consider Ruehl's closing as a strong earnings tailwind.

"However, these are not normal times, and Abercrombie & Fitch's brands are out of favor in the marketplace," he wrote in a research note. He maintained a Sell rating on the company and $15 price target.

Link to full article: http://online.barrons.com/article/SB124570641443938621.html?mod=googlenews_barrons

Thursday, June 18, 2009

Homebuilder shares fall on foreclosure report

A glut of home supply and continuing downward pressure on prices could also make the coming months difficult for homebuilders, Urani said.

"It's kind of a reminder that, even though we're seeing these sales increases lately, there's still a big time foreclosure problem out there," he said. "I think that's snapping people back to reality a bit."

http://www.forbes.com/feeds/ap/2009/06/11/ap6534272.html

Thursday, June 18, 2009

PacSun Names Schoenfeld As CEO, Starrett As Chairman

Wall Street Journal

Pacific Sunwear of California Inc. (PSUN) named Gary Schoenfeld, who previously led competitor Vans Inc. (VANS), as its president and chief executive, effective June 29.

Analyst Brian S. Sozzi of Wall Street Strategies Inc. said Schoenfeld "should bring a fresh perspective into a business that is at a critical juncture in its history, having to refresh stores and flow in stronger brands."

Link to full article: http://online.wsj.com/article/BT-CO-20090617-716102.html

Wednesday, June 17, 2009

Abercrombie & Fitch to Close Ruehl Concept

Wall Street Journal

Abercrombie & Fitch Co. (ANF) will close its 29 Ruehl stores and related operations by the end of the year, and has amended its credit agreement to allow for the charges it will incur.

Wall Street Strategies analyst Brian Sozzi wondered why it took the company so long to close Ruehl, saying retailers should learn from the unit's end that they shouldn't chase every age demographic.

Link to full article: http://online.wsj.com/article/BT-CO-20090617-709878.html

Wednesday, June 17, 2009

Semiconductor Stks Dn After Qualcomm Sees Chipset Ship Decline

NEW YORK (Dow Jones)--Shares of semiconductor companies declined broadly Monday as investors and analysts reconsidered the sector's potential for sales growth after Qualcomm Inc. (QCOM) warned last week of a modest sequential decrease in chipset shipments.

Wall Street Strategies analyst Carlos Guillen said consumer purchasing rates are "hanging in there," but they're nowhere near their levels of the past. Guillen added, at this time, there isn't much evidence that consumers will be increasing their purchases any time soon.

Link to full article http://online.wsj.com/article/BT-CO-20090615-712416.html

Tuesday, June 16, 2009

3 Stock Picks: TEL, LZB, BBY

SmartMoney

Furniture maker La-Z-Boy reported a surprise quarterly profit Tuesday.

The Monroe, Mich.-based manufacturer and retailer posted a profit of 10 cents a share for the fiscal fourth quarter, well ahead of the 11 cents a share loss analysts expected. The company lost nine cents a share a year ago.

Brian Sozzi, an analyst with Wall Street Strategies, says the combination of manufacturing plant consolidations, better sourcing, cheaper raw materials and improvements to its retail business managed to boost core operating margins by 300 basis points.

Link to full article: http://www.smartmoney.com/Investing/Short-Term-Investing/3-Stock-Picks-TEL-LZB-BBY/?hpadref=1

Wednesday, June 10, 2009

Fiat urges Supreme Court not to delay Chrysler deal

David Silver, automotive analyst for WStreet.com, said the development could spell disaster for GM.

"Now, all sides will not only be worried about emerging quickly, but they will also be worried about doing it right," he said.

If the Chrysler sale does goes through as is still widely expected, Fiat would own 20% of new Chrysler, with the option of increasing its stake to as much as 51%.

A health-care trust controlled by the United Auto Workers union would initially get 55% of the equity and would get a $4.5 billion note. The union has a $10.5 billion unsecured claim against Chrysler.

In addition, senior lenders are owed $6.9 billion and would receive $2 billion, or about 29 cents on the dollar, under the plan.

If Fiat's chief executive Sergio Marchionne is serious about turning Fiat into a global brand, Silver said that giving secured debt holders a little more money should not stand in the way.

"I hope that SCOTUS prevents the sale for a little while for the debt holders to get a little more because we aren't talking about hedge funds holding out for money here, we are talking about teachers and firemen and policemen," he said.

http://www.marketwatch.com/story/fiat-to-continue-quest-for-chrysler

Tuesday, June 09, 2009

Movado Forecasts Surprise FY10 Profit; Shares Soar

Reuters

Watch-maker Movado Group Inc. posted a narrower-than-expected quarterly loss, helped by lower expenses that offset a drop in sales, and forecast a surprise profit for fiscal 2010, sending its shares up as much as 22 percent.

"What they have been doing is cutting their expenses... and I think the year-long effort has finally started to pay off for them," Wall Street Strategies analyst Brian Sozzi said by phone.

Link to full article: http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSBNG49242820090609

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