What's New Today in Retail (12/11)

Takeaway: DTLR scraps IPO plans, Reebok opens FitHub in Paris, RSH refinances

EVENTS TO WATCH OVER THE NEXT 24 HOURS

 

COST - Earnings Call: Wednesday 12/11 11:00 am

LULU - Earnings Call: Thursday 12/12 9:00 am

MW - Earnings Call: Thursday 12/12 9:00 am

 

ECONOMIC DATA

 

China’s Retail Sales Accelerate as Factory Output Slows

(http://www.bloomberg.com/news/2013-12-10/china-industrial-production-slows-as-retail-sales-top-estimates.html)

 

  • "China’s retail sales unexpectedly accelerated in November while industrial output rose less than estimated, giving a mixed picture of growth as leaders gather in Beijing to set economic policies for the coming year."
  • "Factory production rose 10 percent from a year earlier, the National Bureau of Statistics said in Beijing yesterday, compared with analysts’ median projection of 10.1 percent in a Bloomberg survey. Retail sales advanced 13.7 percent"

 

COMPANY NEWS

 

HD - The Home Depot Updates Strategic Priorities; Confirms Fiscal Year 2013 Sales And Diluted Earnings Per Share Guidance; Provides Fiscal Year 2014 Financial Outlook And Updates 2015 Financial Targets

(http://phx.corporate-ir.net/phoenix.zhtml?c=63646&p=irol-newsArticle&ID=1883809&highlight=)

 

  • "The Company reaffirmed its sales and diluted earnings-per-share guidance for fiscal 2013. The Company expects sales to be up approximately 5.6 percent for the year and diluted earnings-per- share to be up approximately 24 percent to $3.72 for the year. Comparable store sales, on a 52-week like for like basis, are expected to be up approximately 7.0 percent for the year. The Company's fiscal 2013 sales and diluted earnings-per-share guidance is based on a 52-week year compared to fiscal 2012, a 53-week year."

 

DTLR - DTLR Scraps Plans for IPO 

(http://www.sportsonesource.com/news/article_home.asp?Prod=1&section=9&id=49044)

 

  • "DTLR Holding, Inc. announced that due to a unspecified 'business development' the company has determined to not proceed with its planned initial public offering."
  • "The company declined to comment beyond its one-sentence statement."

 

ADS - Reebok Opens First Fithub in Paris 

(http://www.sportsonesource.com/news/article_home.asp?Prod=1&section=8&id=49067)

 

  • "Like the Reebok flagship opened a year ago in New York on 5th Avenue, Reebok is opening its first concept store (Fithub) and CrossFit Box at 31 Avenue de l'Opera, its first Fithub in Paris. The combined store and gym measures 8,600 square feet."

 

JWN - Jeffrey Kalinsky Shifting Role at Nordstrom

(http://www.wwd.com/retail-news/people/jeffrey-kalinsky-shifting-role-at-nordstrom-7306769?module=hp-topstories)

 

  • "Jeffrey Kalinsky is taking a step back at Nordstrom Inc., where he has been executive vice president of designer merchandising for the last eight-and-a-half years."
  • "Kalinsky, who wants to flex his creative muscles, is planning to focus part of his time on projects outside Nordstrom. He’ll also continue to operate his two namesake stores, Jeffrey New York and Jeffrey in Atlanta, which Nordstrom bought in 2005, naming Kalinsky director of designer merchandising while he remained president and chief executive officer of Jeffrey Inc."

 

Moncler - Moncler Said Likely to Price IPO at Top of Range on High Demand

(http://www.businessweek.com/news/2013-12-10/moncler-said-likely-to-price-ipo-at-top-of-range-on-high-demand)

 

  • "Moncler...plans to price its initial public offering at 10.20 euros a share, the top of an indicated range, according to two people familiar with the transaction."
  • "The sale was fully covered on the first day of the offer, said the people, who asked not to be named because the details aren’t public. The order book closes today and is more than 20 times subscribed, one person said."

 

RSH - RadioShack Closes New Five-Year Financing Totaling $835 Million

(http://ir.radioshackcorporation.com/phoenix.zhtml?c=84525&p=irol-newsArticle&ID=1883753&highlight=)

 

  • "RadioShack Corporation announced today that it has completed a new financing totaling $835 million including a $585 million senior secured ABL credit facility led by GE Capital, Corporate Retail Finance and a $250 million secured term loan led by Salus Capital Partners, LLC.  This comprehensive new financing will be used to refinance existing debt and provide approximately $200 million of incremental liquidity, all of which will further strengthen the Company's balance sheet as it continues to move forward with its operational turnaround."
  • "The new $250 million secured term loan was led by Salus Capital. The terms of this loan include a five-year duration and a rate of LIBOR plus 11%. This term loan was drawn and funded at closing and is secured by a second lien on the assets securing the new ABL credit facility and a first lien on certain other assets of the Company."

 

INDUSTRY NEWS

 

Facebook Ranks as Top Platform in Social Media Survey

(http://www.wwd.com/media-news/digital/facebook-ranks-as-top-platform-in-social-media-survey-7305956)

 

  • "When it comes to product and service recommendations, Facebook scored highest as the most trusted platform, according to a new survey conducted by Social Media Link, an advocacy activation company.
  • The survey found that 68 percent said they trusted Facebook over blogs (63 percent); retail Web sites (63 percent); Pinterest (56 percent); YouTube (51 percent); Twitter (41 percent), and Google+ (41 percent)."
  • "According to the study, reviews by friends and family have the biggest impact (86 percent), followed by professionals (58 percent); Web site reviews (54 percent); acquaintances (42 percent); bloggers (39 percent), and celebrities (11 percent)."

Cartoon of the Day: Acrophobia

"Most people who are making a ton of money right now are focused on growth companies seeing accelerations," Hedgeye CEO Keith McCullough wrote in today's Early Look. "That’s what happens in Quad 1."

read more

People's Bank of China Spins China’s Bad-Loan Data

PBoC Deputy Governor Yi says China's non-performing loan problem has “pretty much stabilized." "Yi is spinning. China’s bad-debt problem remains serious," write Benn Steil and Emma Smith, Council on Foreign Relations.

read more

UnderArmour: 'I Am Much More Bearish Than I Was 3 Hours Ago'

“The consumer has a short memory.” Yes, Plank actually said this," writes Hedgeye Retail analyst Brian McGough. "Last time I heard such arrogance was Ron Johnson."

read more

Buffalo Wild Wings: Complacency & Lack of Leadership (by Howard Penney)

"Buffalo Wild Wings has been plagued by complacency and a continued lack of adequate leadership," writes Hedgeye Restaurants analyst Howard Penney.

read more

Todd Jordan on Las Vegas Sands Earnings

"The quarter actually beat lowered expectations. Overall, the mass segment performed well although base mass lagging is a concern," writes Hedgeye Gaming, Lodging & Leisure analyst Todd Jordan on Las Vegas Sands.

read more

An Update on Defense Spending by Lt. Gen Emo Gardner

"Congress' FY17 omnibus appropriation will fully fund the Pentagon's original budget request plus $15B of its $30B supplemental request," writes Hedgeye Potomac Defense Policy analyst Lt. Gen Emerson "Emo" Gardner USMC Ret.

read more

Got Process? Zero Hedge Sells Fear, Not Truth

Fear sells. Always has. Look no further than Zero Hedge.

read more

REPLAY: Review of $EXAS Earnings Call (A Hedgeye Best Idea Long)

Our Healthcare Team made a monster call to be long EXAS - hear their updated thoughts.

read more

Capital Brief: 5 Things to Watch Right Now In Washington

Here's a quick look at some key issues investors should keep an eye on from Hedgeye's JT Taylor and our team of Washington Policy analysts in D.C.

read more

Premium insight

[UNLOCKED] Today's Daily Trading Ranges

“If I could only have one thing of the many things we have it would be my daily ranges." Hedgeye CEO Keith McCullough said recently.

read more

We'll Say It Again: Leave Your Politics Out of Your Portfolio

If your politics dictates your portfolio positioning, the Democrats and #NeverTrump crowd out there have had a hell of a week.

read more

Cartoon of the Day: 'Biggest Tax Cut Ever'

President Donald Trump's economic team unveiled what he called last week, "the biggest tax cut we’ve ever had.” Before you get too excited about that hang on a sec. "Trump Tax Reform ain’t gettin’ done anytime soon," Hedgeye CEO Keith McCullough wrote in today's Early Look.

read more