Unbelievable. Crocs JUST announced two weeks ago that it would be entering into a licensing deal to create a greater product mix(surprise-- but those plastic clog type shoes aren't selling well other than in Asia)! Everyone thought this was 2012's turn around story. And now... NOW with an outlook for Q1 that missed analyst estimates, the street is back to where it started at the beginning of Q4 of 2011- doubtful that this company can really turn it around. And Gap is another one. Same store sales have been negative for a couple months now. And all of those holiday promotions didn't help Q4 numbers- in fact it narrowed margins. The company is offering a buyback program of $1 billion but analysts I spoke to were skeptical. Check out the vid from Friday:
The Style File Daily Cheat Sheet
(NBC) Express Goes Public with Lunchtime Fashion Show in Wall Street
"Express went public today, and to celebrate 30 years in the biz, models rang the bell at the NYSE and this afternoon, they'll host a fashion show on Wall Street itself. Headliners Alek Wek, Isabel Goulart and Flavia de Oliveira will lead the catwalk down the main thoroughfare of the financial district at 12:30pm, before taking to the streets with "mystery" gift cards loaded with up to $75 -- according to Modelinia, there'll be thousands up for grabs."
(WWD) Zac Posen May Show in Paris
"The designer told a visitor to his showroom Tuesday that he will show his spring 2011 ready-to-wear collection in Paris where, he said, “they understand my clothes.” Posen cited as an additional reason for the move his inability to secure his preferred time slot during New York Fashion Week."
(WWD) Nordstrom Earnings Up in First Quarter
"Reporting after the markets closed Thursday, the high-end retailer said first-quarter earnings for the period ended May 1 jumped to $116 million, from $81 million.Sales rose 16.6 percent to $1.99 billion from $1.71 billion, while same-store sales rose 13.7 percent."
(WSJ) At Gap, Two Brands on Mend, One to Go
"While Gap Inc.'s Old Navy and Banana Republic divisions are showing signs of life, the Gap brand itself continues to struggle with styles that consumers find easy to ignore.This week, Gap is expected to post its first quarterly same-store sales rose in more than five years—the first of Mr. Robinson's tenure. But a rise, for the quarter ended May 1, would come with the caveat that last year's quarter was especially bad. The question is whether Mr. Robinson can build on the gains and convince people inside and outside the company that a turnaround is under way."
(WWD) Urban Outfitters Profits Leap
"Urban Outfitters, which operates the Anthropologie, Free People, Leifsdottir, Terrain and Urban Outfitters brands, on Thursday reported record first-quarter earnings of $53 million. Net income was 31 cents a diluted share, a 72 percent increase over last year’s 18 cents, when earnings totaled $31 million. Glen Senk, chief executive officer of Urban Outfitters Inc., said “We achieved record sales and earnings, but to do so within the greater context of our longer-term goals of investing in store productivity, e-commerce penetration, international expansion and new brands, is even more satisfying.""
Macy's CFO Optimistic - CNBC.com
Signs of Stability in Retail? - CNBC.com
Retail & the Consumer - CNBC.com
Retail Winners & Losers - CNBC.com
Retail's Weekend Winners - CNBC.com
Black Friday: Bargain or Bust? - CNBC.com
For those of you that DIDN'T catch the Cavuto segment...
Shame on you! Just kidding! I want to reiterate my point I made on air today that everyone is getting way too entrenched in this "doom and gloom" attitude about the holiday sales season. The consumer should and will be jumping for joy- the prices are going to be so slashed (because reatailers want to move out that inventory STAT) we (meaning me) might want to re-think getting those Chloe heels for a 42 inch HD plasma. Yep you heard me correct- a gigantic plasma TV will be in the price range of $500- the same price as the shoes I am currently coveting. As far as the retailers are concerned, I think they are gonna have to put in a lot of effort to make up some dismal same store retail sales numbers over the past year. But I wouldn't write them off just yet- these major companies and the aren't stupid. I bet we see some incredible promotions and creative advertising over the next couple months as part of a whole strategy to get shoppers in the door. Now, back to blogging about St. Lucia...
Same store sales numbers are out and I am talking about it on Fox Business today!!
Retail same store sales for April were for the most part on low side. What's new? What's shocking are the double digit drop Gap, Abercrombie and Fitch as well as American Eagle experienced!! I'll be talking about all of this today on Fox Business at around 12:30 pm!!
Today on Fox Business: retail sales and the holiday weekend.
Happy MLK day!! I'm going on Fox Business today at around 2ish to talk about if door buster sales and major mark downs on weekends like this one as well as President's Day will effect over all retail sales. The short answer is: No. When you are about to be in a recession, the last thing on your mind is buying a flat screen that's on a 75 percent mark down!! Instead, you are going to stock up on things like canned food, gas and band aids ( I get major blisters from my Prada sandals in the summer)!! Also, the retailers like Target, Macys J.C. Penny and The Gap Inc. are in a pickle right now. They have huge inventories they need to move and no one to purchase them. So- even if they offer some serious discounts to their merch, it's not going to really have a huge effect on their profit margins. I realize no one can predict the future, but I wonder if retailers looked at sub-prime debacle more carefully and took that into consideration when stocking their shelves full of luxury goods, the retail industry would be in better shape. My prediction: everyone is going to start looking abroad because (as much as it breaks my heart to say this) America is just not where it is at right now. Sad.
Jonathan Saunders is the new designer for Go line at Target!!
What an amazing get for Target, BUT will it help its dismal December sales numbers??
Recession special.
Last Thursday I went on Fox Business to talk about the dismal retail sales numbers and the midst of my conversation with the lovely Liz Claman and awesome David Asman, I said the "R" word. All day, people were speculated that we might be on the brink of one, danced around the topic, insinuated we may be heading toward that direction, but from what my research told me, I felt I had to call a spade and spade. And so I just said it.
During times like these, the last thing anyone wants to do is admit that we are in fact, headed straight towards a crap economy, but when economic indicators like retail sales start to slow, and the amount of available jobs are next to nothing, there IS definitely something negative happening. So I will say it again people-we are on the brink of a recession!! Hunker down- it's unfortunately on the way!!