Nomura Securities on Retailers: Lots of Meetings; Many Common Questions
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Price: $0.18 --0%
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 60
Rating Summary:
1 Buy, 21 Hold, 11 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 60
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Nomura Securities on Retailers: Lots of Meetings; Many Common Questions
Analyst, Paul Lejuez, said, "Over the past several weeks, we have met with many clients. We find that several common themes/questions have come up consistently."
1. Can this JCP strategy work? How bad are sales trends? Depends how you define “work”. We don’t believe they hit 13% EBIT margins. We believe sales are running down 15% in 1Q12.
2. What brands do you think JCPenney (NYSE: JCP) gets? We need to think out of the box. Expect many non-apparel concepts.
3. Is the Gap Brand (NYSE: GPS) turn for real this time? Tough call. We are impressed that the new design team got it right.
4. How can we make sense of Michael Kors' (Nasdaq: KORS) valuation? It helps to use an Enterprise Value sanity check (we use Lululemon (Nasdaq: LULU) / Coach (NYSE: COH)).
5. What do you think about the old guard coming back into the business at Urban Outfitters (Nasdaq: URBN)? We think the biggest challenge facing URBN is Anthropologie, and both CEO Dick Hayne and Urban Outfitters brand President Ted Marlow were “Urban guys”, not “Anthro guys”. We believe it may take some time to fix.
Analyst, Paul Lejuez, said, "Over the past several weeks, we have met with many clients. We find that several common themes/questions have come up consistently."
1. Can this JCP strategy work? How bad are sales trends? Depends how you define “work”. We don’t believe they hit 13% EBIT margins. We believe sales are running down 15% in 1Q12.
2. What brands do you think JCPenney (NYSE: JCP) gets? We need to think out of the box. Expect many non-apparel concepts.
3. Is the Gap Brand (NYSE: GPS) turn for real this time? Tough call. We are impressed that the new design team got it right.
4. How can we make sense of Michael Kors' (Nasdaq: KORS) valuation? It helps to use an Enterprise Value sanity check (we use Lululemon (Nasdaq: LULU) / Coach (NYSE: COH)).
5. What do you think about the old guard coming back into the business at Urban Outfitters (Nasdaq: URBN)? We think the biggest challenge facing URBN is Anthropologie, and both CEO Dick Hayne and Urban Outfitters brand President Ted Marlow were “Urban guys”, not “Anthro guys”. We believe it may take some time to fix.
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