HEDGEYE RETAIL IDEAS LIST
*Added LULU to Best Idea list 6/15/14 (https://app.hedgeye.com/feed_items/36119-lulu-adding-to-best-ideas-list-as-a-long?page=1)
EVENTS TO WATCH
- H&M - Earnings Call: 2:00pm
TGT - Target says glitch at registers across U.S. not hacker-related
- "Target Corp. confirmed Sunday night that a 'glitch' in its system had caused delays at registers at some of its U.S. stores, but added that it is not in any way related to a data security issue or a hacker."
- "Customers around the country took to social media Sunday night reporting long check-out lines due to registers not working."
- "Target did not elaborate on the exact problem or problems, but said it would provide updates as they became available. It also was not immediately clear how many stores were affected by the glitch."
- "On Sunday night, Target employees tried to placate shoppers irritated by the long lines by handing out $3 coupons in some stores that said 'We are sorry for any delay you experienced in our store.'”
Takeaway: The POS glitch appears to have affected stores nationwide. Terrible PR for the company as it tries to recover from the data breach. What we can't figure out is, how this slipped through the cracks? Where's quality control, where's the IT support? TGT has some serious organizational issues to iron out and they won't be cheap to fix.
NKE - NIKE INTRODUCES FIRST PRODUCT WITH COLORDRY TECHNOLOGY
- "NIKE, Inc. today unveiled the ColorDry Polo in a palette of vibrant colors – Nike’s first product available to consumers using ColorDry technology that dyes fabric with zero water."
- "It takes 30 liters of water to dye a T-shirt using traditional dyeing methods. ColorDry technology removes water from the dyeing process by using recycled CO2 to infuse fabric with intense, saturated color. The technology also saves energy and eliminates the need for added chemicals in the fabric dyeing process."
- "The breakthrough of waterless dyeing is combined with another sustainable apparel innovation: recycled polyester. The ColorDry Polo is 100 percent recycled polyester, made from polyester manufacturing scraps and recycled plastic bottles that are washed, chopped into flakes and melted down to produce fine yarn used to create the polo's fabric. An equivalent of 16 recycled plastic bottles is used to make each polo."
- "The ColorDry Polo release follows Nike’s February 2012 strategic minority investment in Dutch start-up, DyeCoo Textile Systems B.V...Last December, Nike announced the opening of a waterfree dyeing facility at its Taiwanese contract manufacturer Far Eastern New Century Corp."
Takeaway: Not new product, just new processes from NKE. We don't know if using old plastic bottles to make polo shirts will be margin accretive or help drive sales, but it does score the company serious brownie points in the sustainability camp.
KATE - Kate Spade Appoints Roy Chan
- "Kate Spade & Co. has appointed Roy Chan senior vice president of international, a new post."
- "Chan is responsible for the strategic oversight and international expansion for Kate Spade New York, Kate Spade Saturday and Jack Spade. He reports to Craig Leavitt, chief executive officer of Kate Spade."
- "Most recently, Chan was president of international at Jones Group. Before that, he was acting ceo of Band of Outsiders after serving as global chief operating officer of Japanese brand Evisu."
WMT - Wal-Mart India Woos Mom-and-Pop Stores to Tap $50 Billion
- "Wal-Mart Stores Inc. has opened an e-commerce website to supply goods to mom-and-pop merchants in India as the world’s largest retailer seeks to dominate a market it estimates will be valued at $50 billion by 2020."
- "The Indian website is only for existing users of its members-only cash-and-carry stores and may help draw orders from small businesses more than 20 kilometers (12 miles) from outlets and that aren’t serviced by sales representatives, said the company’s chief executive for India Krish Iyer."
- "Unlike the Sam’s club and other member-based store formats, India’s cash-and-carry services are only for mom-and-pop shops and other traders who need government tax documents to become members. Ordinary shoppers are not allowed to enter the stores or shop on this new website."