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Takeaway: FDO - little faith in core consumer. Adi releases 2nd fitness tracker...doubt we see a 3rd. Tough week for NKE soccer. RonJon speaks.


Friday (7/11)

  • PSMT - Earnings Call: 12:00pm



FDO - 3Q14 Earnings

Retail Callouts (7/10): FDO, Adi, NKE, JCP - chart2 7 10

Takeaway: Slight beat on the top line driven by a better than expected comp offset by  margin pressure due to sales mix (consumables penetration up 73bps), fixed cost deleverage, and increased ad spend led to the $0.04 EPS miss. We still have very little faith in FDO's core consumer.


AdiBok - Adidas Gets Smart


"Adidas unveiled Fit Smart, a fitness-training product worn on the wrist, at the Wearable Technologies Conference in San Francisco today...Fit Smart measures heart rate, calories, pace, distance and stride to calculate workout intensity."

"Fit Smart, which retails for $199, will be released in late August exclusively at Best Buy and Bestbuy.com, and then on Adidas.com."

Retail Callouts (7/10): FDO, Adi, NKE, JCP - chart1 7 10

Takeaway: Interesting move here by Adi given the moves made by its competition over the past 3-6 months. NKE appears to be walking away from fitness tracking hardware - choosing instead to outsource the design to Apple. UA won't be releasing another iteration of its Armour39 fitness tracker, deciding to partner with best-in-class products already on the market. This is the 2nd stab Adi has taken at the smartwatch/ fitness tracker, and our guess is that we won't see a 3rd. Sports brands have tried and failed repeatedly to establish a market presence in this growing category. Best to leave hardware to the Apples, FitBits and Jawbones of the world. 

AdiBok, NKE - Argentina Win Hands Adidas World Cup Win Before Final


"Argentina, sponsored by Adidas AG, triumphed on penalty kicks in Sao Paulo to eliminate a Dutch side outfitted by Nike Inc. of the U.S. In the final, it will face fellow Adidas-backed team Germany, which defeated Nike-supported Brazil 7-1 on July 8. The Herzogenaurach, Germany-based company also outfitted the Spanish team that won the last World Cup in 2010."

Takeaway: Tough week for NKE soccer. First the Brazil disaster, then ManU, and now an all Adi final.



JCP - Ron Johnson: ‘I was a terrible fit for J.C. Penney’


  • "Ron Johnson, who has been keeping a relatively low profile since he was ousted from J.C. Penney in April 2013, took to the podium in May, as a guest lecturer at Stanford University."
  • "’It was disappointing because I really believed we would make it work, but it was a relief because the lesson I learned is I was a terrible fit for J.C. Penney,’ he said. ‘I'm a creative person, here's a company that isn't uber-creative. I believe in change, this company’s much more comfortable, like many people are, with the status quo.’"

Full Video: http://www.gsb.stanford.edu/news/headlines/ron-johnson-its-not-about-speed-market-its-really-doing-your-level-best


ZQK - Quiksilver Announces Additional Licensing Agreements


  • "Quiksilver, Inc. (NYSE: ZQK) today announced that it has entered into licensing agreements for several product categories, including Roxy young girls and children’s apparel, watches and socks/legwear, as well as other product categories including luggage, beach towels and surfboards."


DSW - New DSW Designer Shoe Warehouse Stores Open in Canada


  • "Town Shoes Limited is excited to announce the opening of its first two DSW Designer Shoe Warehouse locations in Canada. DSW Designer Shoe Warehouse will open at Heartland Centre in Mississauga and Woodland Hills in Newmarket, Ontario, on August 7."

AAP - American Apparel Signs Support Agreement with Standard General


  • "American Apparel, Inc. announced it has reached a Nomination, Standstill and Support Agreement with Standard General L.P. and company founder Dov Charney, the beneficial owners of nearly 44% of the Company's outstanding stock. Under the agreement, Standard General will provide up to $25 million in immediate financial support to the Company, the Company's board will be reconstituted..."


LE - Lands’ End deploys Fit Predictor to help online shoppers get best fit


  • "Lands’ End has deployed Secret Sauce’s Fit Predictor service, which proactively finds a customer's best fit in seconds using existing data, without the need for physical measurements."
  • "For new customers without a Landsend.com shopping history, the service can predict the best fit based on the customer's sizing with other brands."

BEBE - Apparel retailer Bebe stores revamps management board


  • "bebe stores, inc. announced that Seth Johnson, Blair Lambert and Brett Brewer have replaced Caden Wang, Barbara Bass and Cynthia Cohen on the Company’s Board of Directors, effective immediately."