Our analysis looks at every apparel and footwear retailer in the US – public and private – with more than 5 stores. We look at the exact lat/long for every single store, and gauge tourist exposure. We defined “tourist cities” based on the top 10 most visited cities by international tourist as defined by the Office of Travel and Tourism Industries.
Why include private companies? Because last I checked, many brands that are public sell goods in private retailers. Goody’s was private. So was Boscov’s. Get the picture?
Some notable call outs…
1. The top 7 companies are private – ouch!
2. Quiksilver and Tiffany at 44%.
3. Burberry (39%) and Hugo Boss (45%)
4. Adidas at 27% has 3x Nike’s direct exposure.
5. Ralph Lauren very notable at 37%.
6. Modell’s (important Nike, Adi, UA customer) at 30%.
7. Levi’s 28% (a desperate Levi’s puts pressure on VFC).
8. DSW – a company I think is terminal – is over 20%.
9. Coach surprisingly low at 18%.
10. Guess at only 24%, despite management’s comment that 80% of North American retail stores are in travel markets. This brings up the next factor for us to slice and dice. The difference in sales productivity for these stores versus non-travel market stores. We need to strip out outlets and look at the top producing stores only. Coach, for example, has only 18% of stores in tourist markets. But 12% of its sales come from its NYC Flagship store. The bottom line is that the percentages you see in the table below might understate the real revenue exposure.