• The call plus


    The Call @ Hedgeye Plus

    Our favorite, high-conviction stock ideas and CEO Keith McCullough’s Macro overlay. Exclusively on Hedgeye TV.


I never make fashion calls – ever. Not my place, nor my skill set. But I can’t turn a blind eye on what’s selling. That’s why I hired an expert whose opinion I trust implicitly. Here’s some scoop...

His view from the field…
The stores are stocked with all the Hollister basics: the usual surf influence, short sleeve polos, cargo pants, plaid woven shirts, and witty text print shirts. It works, but I think it might be time for a change of pace…store traffic was almost non-existent. B-

Abercrombie never disappoints with their colors. I think the wall of buttery yellows and creamy whites next to shelves of soft pinks looks extra appetizing. Abercrombie also has new fixtures and visuals that enhanced their basics. Abercrombie is increasingly shifting to a trend of season-less merchandising…they offer tanks, short sleeve knits, shorts, and denim minis all year round on the selling floor until late fall. It’s a bit too much of the “same old, same old.” B

When you enter the store, you are greeted by new display fixtures showcasing tank tops in 25 different colors. It takes the “same old, same old” and gives it a boost and shows off what A&F excels at – color. There are not enough prints; bordering on nonexistent. A rare mistake.

Classic navy blue is the most important color in the store (all mannequins are dressed head-to-toe in layers of navy. Abercrombie’s assortment includes all the classics, such as ribbed sweaters, knits for layering, plaid woven shirts, and polos. The most beautiful pieces are done in sophisticated neutral colors like stone gray and oatmeal…it keeps the merchandise modern and salable. I also see a return to destroyed denim; many jeans have rips, holes, and fading treatments…all well done. I’m impressed by the uniqueness of the distressed denim, but the denim division has the same disease that all the other divisions have…they look good, but nothing new. B-

Ruehl is still more sophisticated than Abercrombie & Fitch with better fabrics and more upscale details, but yes, key best sellers from other divisions are also used in Ruehl with a bit of tweaking. Ruehl’s color story consists of deep colors (though not enough black) in vintage washes, perfect for fall. To become a major player Ruehl needs to have a bigger differentiation from the other divisions. B-

Rock & roll continues to be a major trend for fall; even making an appearance at the high-end men’s departments at Nordstrom. There are plenty of cool graphic T-shirts, skinny dark denim, and rugged leather jackets; near the cash register is a table of colorful sunglasses. At $10 a piece, the sunglasses are the perfect impulse buy to complete any rock & roll outfit. Beyond rock & roll, newness is hard to find at Nordstrom in both the men’s and women’s area. C+

There are some obvious tries to grab a trendy customer, like with Gap’s ruffle-front blouse for women, but bad color, poor fit, and outdated proportions crush those attempts. And again in Gap, I ask myself “where are all the cool things and slim fits we see in Gap Japan?”…Huge disconnect between Gap Japan and Gap America. In America, Gap pushes the same old pant fits: the low rise straight (their “new favorite”), the relaxed fit, and the straight. Does Gap know that the cool guys that are spending money on clothes in a tough economy are buying their pants slim and skinny and slim like in Tokyo? Putting some skinny jeans with all those sloppy tops would make a more interesting pairing than sloppy tops with sloppy bottoms. In men’s there are sloppy hoodies with a waffle knit lining for $79.50 Do we want to look like college students that can’t do any better? Not at all. In kids (another example of a literal gap) some of the items are actually cute! And they have nice clean colors for fall like navy blue, red, and platinum gray. Gap kids also hits the mark with clean wearable plaids and basic salable stripes…perfect for little Mr. and Mrs. Average, but it’s a check year. Where are all the checks? C-

Everything at Banana Republic looks okay…and just okay; nothing spectacular. Do I want to buy anything? Nope. Maybe next time… C-

Victoria’s Secret Pink looks great with fresh ideas (like the Collegiate Collection), graphics, details, and colors. The current color story makes everything looks extra enticing with soft heather fabrics (from heather gray to heather pink and heather green) and a shocking touch of neon. We give them an A. Victoria’s Secret lingerie is more of the same…we have seen it all before. C-

The stores are very inconsistent. There are some good things and there is the same amount of bad things. All of it has an edge of sleaze. Boring denim and loads of markdowns bring the store down. C-

The Guess people are smart people. The store is full of good ideas. I love: the lightweight sexy fabrics, the interesting placed prints, the touches of shine, and the excellent denim finishes. The bling-bling people do it again. B+

I can understand why Urban Outfitters is the favorite store of people that are hip and cool. The store is ready for fall with right colors, silhouettes, prints, and patterns. Key pieces for both men and women include: the plaid shirt, the long cardigan, and skinny jeans. Adding to the Urban Outfitters success are the mini boutiques of capsule collections. Designers like Steve Alan, Charlotte Ronson, and Geren Ford create lines exclusively for Urban Outfitters. These capsule collections make contemporary designs, usually sold at retailers like Barneys and Saks, affordable for the average college student. Urban Outfitters is an A+ store.

It’s a treasure chest of quirky details, delicate fabrics, and eccentric designs. Free People is one of my favorite companies right now. The designers are very clever with mixing prints and fabrics; always two steps ahead in offering the customer something new and different. Though the overall aesthetic may seem a bit overwhelming, Free People anchors itself with a wonderful color story of earth tones and neutrals. Items such as lace dresses, distressed denim, and cowl-neck sweaters are very right for the season. A

With their one of a kind visuals plus unique assortments of merchandise, Anthropologie continues to prosper. A true lifestyle store, offering everything from shower curtains to “boyfriend” cardigans, Anthropologie is one of the few retailers to excite their customers. Fashion forward trends like menswear pants and bowtie blouses, as well as current trends like ruffle blouses, painterly prints, and pencil skirts can be found in the store. Anthropologie has also launched a new line – Liefsdottir (think: a grown up Free People for wear-to-work) sold at Anthropologie stores as well as Nordstrom, Bloomingdale’s and Bergdorf Goodman. A-

The winning streak continues! The visuals are outstanding, the overwhelmingly gray color palette is absolutely right, the shots of color are exciting, and the prints and garment details are on target! Very solid. A+

I think these stores are looking a bit old-lady, but hey, there is a population of old ladies with money to spend. White House/Black Market does a great job of borrowing ideas from high-end designers (Oscar de la Renta and Chanel) and contemporary designer such as Alice & Olivia. Sophisticated yet wearable silhouettes and details are available to customers attempting to be a little bit more fashion forward. I think they have great black & white prints; in patterns from animal to floral and abstract…it all looks very sharp and classic….but no, I did not like all of it. B-