• It's Here!

    Etf Pro

    Get the big financial market moves right, bullish or bearish with Hedgeye’s ETF Pro.

  • It's Here


    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.


November 26, 2010






  • Macy’s confirmed a partnership with Karl Lagerfeld is in fact underway.  Surprisingly, the collaboration is not the only one in the works.   The store’s “Impulse” designer concept to be launched in September 2011, is also likely to include diffusion lines by Vivienne Westwood, Paul Smith, Calvin Klein, Costume National, and Versace.  Certainly sounds like Macy’s is taking a page out of H&M’s playbook.
  • Add luggage, overnight bags, and totes to the growing luxury offering from shoemaker Jimmy Choo.  The product extensions are expected to hit the market in February 2011, just in time to continue building the case for an IPO.
  • According to ComScore, early holiday spending is up 13% y/y for the first 21 days of November.  77% of consumers say that free-shipping is a key factor in their decision to purchase online, while 41% of online retail offers actually include free shipping.


LVMH Buys Additional Stake in Societe Samaritaine - LVMH Moët Hennessy Louis Vuitton said on Thursday it has bought an additional 40.1 percent stake in Société Samaritaine from the Fondation Cognacq-Jay, giving it almost full ownership of the company, which owns the La Samaritaine complex. Financial details of the transaction were not disclosed. LVMH now owns almost 100 percent of Société Samaritaine, though a spokeswoman declined to disclose its exact stake. The French luxury group earlier this week said chief financial officer Jean-Jacques Guiony would take over as president of La Samaritaine as the landmark Paris department store gears up for its transformation into a complex combining stores, offices, housing and a hotel. The project is slated to be completed in 2013. The Fondation Cognacq-Jaÿ was created in 1916 by Ernest Cognacq and Louise Jaÿ, the original founders of La Samaritaine, and focuses on social projects. <WWD>

Hedgeye Retail’s Take: Add this trophy property to the list of “non-core” assets within the LVMH empire.  We wonder if some day this property becomes a mecca for LVMH loving consumers.

Armani Online in China - Giorgio Armani SpA is launching an Emporio Armani online store in China, becoming the first western fashion brand to open an official e-store in the country, according to those involved in the project. The site, emporioarmani.cn, is powered by Italian online retailer Yoox. Giorgio Armani said that the growing importance of the Chinese online market prompted him to launch the site, which is being unveiled today. The company “identified a significant group of fashion consumers who will certainly appreciate this new approach to shopping, one that becomes more popular every day," the designer said. In addition to Emporio collections for men and for women, the store will also carry the EA7 sports line, a selection of the Armani Jeans collections, accessories, watches, eyewear and jewelry. The site will be entirely adapted to the market in terms of language and customer care, size conversions, payment systems and currency. There will also be specifically branded bags and packaging. "Our relationship with Emporio Armani has grown since 2007 when we launched their online flagship store in the U.S., followed in 2008 by EU and Japan in 2009,” said Federico Marchetti, chairman and founder of Yoox. “This exciting new chapter in China is the result of our two teams working in tandem for almost a year to be the first to enter the world's biggest e-commerce market." <WWD>

Hedgeye Retail’s Take: Interesting, lower cost way to enter the Chinese market.  Online sales should help gage geographic and product demand so long as the website remains accessible to the general population.  Recall that Chinese internet access is not without its limits.

JCP's Deluge of Deals - More than 40,000 deals will be available on JCPenney.com on Cyber Monday. In addition, the retailer will offer free shipping on online purchases of $25 and more beginning today [Nov. 24] through Nov. 30. Cyber Monday savings is expected on men’s, women’s, teens’ and kids’ apparel, as well as home décor and video games. “As one of the largest apparel and home furnishing sites on the Internet, jcp.com offers a vast assortment of merchandise including styles, sizes and colors not available in stores,” says Tom Nealon, group executive vice president for JCPenney. “We know customers are increasingly shopping online, which is why we’re confident that jcp.com will be the shopping destination this Cyber Monday as customers discover our exciting promotions and great merchandise selection along with convenient features that make their online shopping experience easier than ever.” <WWD>

Hedgeye Retail’s Take: The volume of JCP’s deals are at such a level that customer presentation is now among the key elements to executing the company’s pricing strategy – after all, what good is a deal if you don’t see it.

South Korean Consumer Still Buying - On Thursday afternoon, less than 48 hours after hundreds of North Korean shells rained down on South Korea’s Yeonpyeong Island, department stores here were bustling with shoppers searching for winter clothes. Lines formed outside Louis Vuitton boutiques. Other luxury stores were not necessarily packed, but definitely crowded. According to a saleswoman in a Prada boutique located in a Shinsegae Department Store in eastern Seoul, aside from initial shock, surprise and nervousness immediately after Tuesday’s attacks, it has otherwise been business as usual: “Some people went to grocery stores to buy extra noodles,” she said. “Otherwise everything is normal.” That’s likely to reassure fashion and luxury goods companies, who have been touting the potential of the fast-growing Korean market and its style-conscious citizens in recent years. Meanwhile Seoul is emerging as one of Asia’s most vibrant capitals with a lively fashion and arts scene. Last year, Prada’s much-hyped Transformer structure, created in collaboration with Rem Koolhaas, elevated Seoul’s profile even more. Korea weathered the financial crisis surprisingly unscathed with luxury sales rising nearly 17 percent in department stores in 2008 and 2009, according to a 2010 McKinsey South Korea Luxury Goods Survey. Korea’s $4 billion luxury market accounts for four percent of global sales, the report said. <WWD>

Hedgeye Retail’s Take: Sadly business as usual in the face of a military offensive is the reality for Korean consumers. Keep in mind that similar to other regional currency arbs, Korea continues to be a key shopping market for the Chinese that consist of a material portion of retail sales in Korea.

Pakistan Leather Exports Continue to Grow - Pakistan's leather exports in October were up by 27.6% compared to the same month in 2009, according to the Federal Bureau of Statistics. During the month of October, the country exported finished leather, leathergoods and leather footwear worth $33.2 million, $46.3 million and $7.8 million respectively. Pakistan's leather sector exports for the first four months of current financial year (July-October 2010) rose by 20.1% to $353.4 million compared to the same period last year. <FashionNetAsia>

Hedgeye Retail’s Take: Pakistan’s leather export growth continues to coincide with China’s heightened regulations regarding highly polluting tanneries – expect this trend to continue in the intermediate-term.