EVENTS TO WATCH
- H&M - Earnings Call: 2:00pm
ICSC - Chain Store Sales Index
Takeaway: Two solid weeks of data. Plus 3% and 3.1% YY over the past two weeks respectively. QTD growth rate is flat to last year.
JCP, M - Macy's Wins Case Against J.C. Penney
- "New York State Court Judge Jeffrey Oing ruled that Penney’s 'tortiously' interfered with Macy’s agreement with MSLO and ordered that a hearing be scheduled to determine how much Penney’s owes Macy’s in damages and attorneys’ fees. The judge did not award Macy’s punitive damages…"
- "The judge continued that Johnson’s 'only motivation' was to 'gain an edge' on the competition. He denied Macy’s its request for punitive damages, which are normally granted to punish a defendant for misconduct and to deter others from similar behavior in the future. Oing said Penney’s firing of Johnson in April, combined with the fact it was 'on the verge of financial collapse,' amounted to 'abject retail failure,' which proved to be a sufficient deterrent to the company and its rivals. Still, Oing noted that a judicial hearing officer or special referee would determine damages and attorneys’ fees at a later date."
Takeaway: Looks like Penney's will walk away from this with a slap on the wrist. M prolonged the case in an attempt to inflict maximum pain on JCP. The irony is that this is behavior that is typical of wanting to hurt a financially-strained competitor. We're not beating Macy's up over this -- it's what companies do. But, Macy's management will swear all day that it does not compete with JCP. The big loser in this whole mess is MSO.
WMT - @WalmartLabs Grabs Its First “Silicon Alley” Startup With Acquisition Of Fashion App Stylr
- "@WalmartLabs, the retailer’s Silicon Valley-based R&D and innovation center, is today announcing its 13th acquisition – and its first from New York’s 'Silicon Alley' – with the acquisition of fashion app Stylr. The app, which helps consumers find clothes they love in nearby stores, will be shut down. It will be pulled from the iTunes App Store by the end of this month."
- "Terms of the deal were not disclosed, but we understand it was more of an 'acqui-hire' related to bringing the talent of the founders, Eytan Daniyalzade and Berk Atikoglu, to Walmart."
Takeaway: WMT continues to invest in talent. The company has recognized the importance of this channel for its long term growth algorithm and is investing accordingly. Compare that to the guys in Minneapolis who formed a Digital Advisory Council to solve TGT's e-commerce problem.
TGT - Target: Device glitch caused check-out delays
- "Target Corp. said Monday that the 'glitch' that slowed many of its check-out registers to a crawl Sunday night was related to a defect with a network device."
- "The Minneapolis-based retailer didn’t provide more details about the problem, noting that the issue was resolved by about 11 p.m. Sunday. The company also reiterated there was no evidence that it had anything to do with a cyberattack. The malfunction lasted a few hours but affected stores nationwide…"
KSS, SHOO - Juicy Couture, Steve Madden Partner for Footwear
- "Juicy Couture is stepping into the footwear category through a partnership with Steven Madden Ltd. The line will be available internationally in spring 2015 in Juicy Couture stores, shops-in-shop, select department stores and online at the brand’s Web site."
- "The higher-priced line, starting at $80 and going up to $200, will be available internationally, while a lower-priced collection referred to as the midtier line will come later and is expected to be sold primarily at department store doors in the U.S."
WWW - Wolverine Worldwide Announces Key Leadership Changes And Additions To Accelerate Global Growth
- "Wolverine Worldwide today announced important organizational changes to strengthen its senior leadership team and help accelerate global growth."
- "...James D. Zwiers has been appointed President of the International Group. Mr. Zwiers has held numerous and increasingly significant leadership roles during his 16 years with the Company, including President,Performance Group; President, Outdoor Group; President, Hush Puppies USA; and Senior Vice President with responsibilities for strategy, business development, consumer direct and legal."
- "...James A. Gabel will succeed Mr. Zwiers as President of the Performance Group...having most recently served as President of adidas Group Canada
- "...Andrew Simister as President of the Company's Lifestyle Group...Most recently, Mr. Simister was President of the Lacoste Footwear brand…"
WMT - Wal-Mart to Triple Spending on Food-Safety in China
- "Wal-Mart Stores Inc. said it will triple its spending on food-safety in China to 300 million yuan ($48.2 million) between 2013 and 2015 amid scrutiny of its operations by officials there."
- "The Bentonville, Ark., retailer is increasing its food safety investment from the 100 million yuan it previously pledged to spend over the three-year period, said Wal-Mart's China Chief Compliance Officer Paul Gallemore in a press briefing Tuesday. The funding will go to additional food testing and supplier audits, Mr. Gallemore said, adding that Wal-Mart will double its DNA testing on meat products."
GIII - G-III Apparel Group, Ltd. Announces European License for G.H. Bass Footwear
- "G-III Apparel Group, Ltd. announced today that it has entered into a multi-year wholesale license agreement with UK based Overland Ltd. for the sale of men's, women's and children's footwear under the G.H. Bass and related brands in Europe. Overland plans to sell G.H. Bass footwear primarily to department and specialty stores beginning in the fall of 2014. A companion agreement also enables Overland to operate retail locations throughout Europe."
- "This latest agreement marks the second license that G-III has entered into since acquiring G.H. Bass from PVH Corp. in November 2013. Earlier this year, G-III announced a multi-year license with PVH Corp. for G.H. Bass better men's sportswear for department store distribution throughout North America."
UHR - Swatch Waiting With Apple for Smartwatch Market to Grow
- “'You won’t see us participating in a race of who’s going to introduce what first,' Hayek said over coffee in his cluttered office in Biel,Switzerland. 'There’s still big resistance from the consumer, so we’re going to wait.'"
- "Hayek says his company has all the technology it needs to make a smartwatch. His plan is to sell components to others, a quiet way to benefit from a potential revolution in the $62 billion watch industry. If demand crystallizes, the company is ready to jump in and push a smartwatch through its extensive distribution network."
NKE, JD Sports - JD Sports Fashion jumps 3% after World Cup boost
- "JD Sports Fashion ... has issued a positive trading update, saying it expected a satisfactory increase in first half profitability in line with expectations."
- "The build up to the World Cup has enhanced the trading performance of our most significant segment of the business, the sports fascias. As a consequence, precise like for like sales figures, at this stage, would be potentially misleading. However we are certainly pleased with the underlying performance of this segment in the period to date."