EVENTS TO WATCH
- WFM - Earnings Call: Tuesday 5/6, 5:00pm
- BEBE - Earnings Call: Thursday 5/8, 4:30pm
- TUMI - Earnings Call: Thursday 5/8, 4:30pm
- RL - Earnings Call: Friday 5/9, 9:00am
ICSC - Chain Store Sales Index
Takeaway: One positive, one negative data point trend continues. Still no stability from the consumer in retail land. One more easy comp before compares get much more difficult.
ADDYY - 1Q14 Earnings
Takeaway: Sales flat in AdiBok's backyard and down 20% on a currency adjusted basis in North America. Emerging market growth means very little if the company can't hold onto market share in its core markets. Yes the World Cup should help in 2Q, but we should have seen some benefit starting in 1Q. Sales inventory spread of -13% plus margin erosion = a difficult setup for the remainder of the year.
GOOG, AMZN, WMT, TGT - Google Targets Amazon With Free Same-Day Delivery in N.Y. and L.A.
- "Google just threw down the gauntlet in the same-day delivery wars, launching its Google Shopping Express service in Manhattan and parts of Los Angeles and offering free same-day delivery for the first six months."
- "The service, previously available only in the San Francisco Bay area, delivers groceries and other goods from the likes of Costco, Target and Walgreens, and usually costs $4.99 per store visited."
Takeaway: Partnering with Google and Ebay is the best alternative for retailers when trying to fend off AMZN, but scaling same day in a market as dense as NY won't be easy. Orders overwhelmed Google's network yesterday and the company was forced to refuse service after noon. Still a lot of kinks need to be ironed out, but a step in the right direction for brick and mortar.
BBY - Senior executive resigns at Best Buy
- "Jude Buckley has resigned as chief commercial officer of Best Buy Co., where he was in charge of store design and strategies for vendors and wireless carriers, the company said Monday."
- "He is the second top operations executive to leave the Richfield-based electronics retailer in recent weeks. On April 14, Best Buy said Shawn Score, a 29-year veteran of the company, left after little more than a year as head of the company’s U.S. retail stores."
- "After the appointment of Hubert Joly as chief executive officer in 2012, Buckley was elevated to chief commercial officer reporting to Joly."
Takeaway: Two keys pieces of the US retail team gone in under one month. Not a good sign for a company trying to remake itself and rationalize its real-estate.
ADDYY - Adidas Puts Rockport Shoe Brand on Auction Block
- "...Adidas AG is looking to sell its Rockport brand, according to people familiar with the matter."
- "The German company has hired investment bank Guggenheim Partners to start pitching Rockport to potential buyers, said two of the people. Rockport has between $30 million and $40 million in annual...Ebitda...Rockport could command $300 million or more."
PVH - PVH Corp. Announces License Agreement with TS Commerce Corporation for Van Heusen Brand
- "PVH Corp. and TS Commerce Corporation have entered into a license agreement under which TS Commerce Corporation will manufacture, sell, distribute and promote apparel and accessories for the Van Heusen brand in Korea. The initial term of the license agreement runs through December 2018."
- "Under the license agreement, TS Commerce Corporation has the rights to manufacture, sell, distribute and promote Van Heusen products which include men’s dress and sport shirts, neckwear, knit shirts, suits and suit separates, pants, underwear, leather belts, wallets, cuff links, tie bars, socks, headwear, bags and shoes."
- "TS Commerce Corporation will open and operate free-standing Van Heusen stores in Korea, and has the rights to also distribute Van Heusen products through shop-in-shops, specialty stores, department stores, retail outlets and via an e-commerce website."
JWN - Nordstrom debuts integrated online & mobile shopping site
- "Seattle-based Nordstrom, Inc., has launched nordstromrack.com, a new e-commerce site and mobile app, built on a shared platform with HauteLook, Nordstrom's flash sale business. The new site gives customers access to shop Nordstrom Rack merchandise alongside HauteLook flash sale events."
- "The site experience is designed to offer an integrated way for customers to browse and buy merchandise either through a persistent Nordstrom Rack offering of on trend apparel, accessories and shoes at 30-70 percent off regular prices or through limited-time, limited-inventory flash sale events powered by HauteLook. Customers are able to shop both sites through a single log-in, shopping cart and can combine items into one easy checkout."
MW - Men's Wearhouse Announces Termination Of Shareholder Rights Plan
- "The Men's Wearhouse announced today that its rights agreement has been amended to accelerate the expiration date to May 5, 2014, effectively terminating the company's shareholder rights plan as of that date. The rights agreement had originally been scheduled to expire on September 30, 2014."