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Takeaway: SIGMA review for the 16 retailers reporting this week. TGT, DKS, URBN, FL, HIBB, TJX, HD, LOW, DLTR, SPLS, AEO, BONT, GPS, GME, SHLD, PETM

COMPANY HIGHLIGHTS

Here's a SIGMA review of every retailer that reported earnings this week. As a reminder, the analysis triangulates sales, inventories and margins. The vertical axis is the spread between sales and inventories -- the higher on the scale, the better.  The horizontal axis is the y/y change in EBIT margin. In effect, you want to be either in the upper right hand quadrant, or headed there. The opposite holds true for the lower left.

There are 16 charts in total. The group overall carried on the trends we started to see with department stores last week, where inventory positions are improving across the board.  The exception report had been made up of the winners that stood out amongst the list of dogs. But this time, we're seeing the opposite. Target, Dollar Tree ,Sears, Staples and Hibbett are leading the charge for those that are tuning the wrong way. No major surprises there.  URBN and GPS are two of the more notable positive turns to us.

TARGET

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart1 tgt

DICK'S SPORTING GOODS

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart2 DKS

URBAN OUTFITTERS

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart3 URBN

FOOT LOCKER

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart4 FL

HIBBETT

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart16 HIBB

TJX

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart5 TJX

HOME DEPOT

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart6 HD

LOWES

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart8 LOW

DOLLAR TREE

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart7 DLTR

PETSMART

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart9 PETM

STAPLES

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart10 SPLS

AMERICAN EAGLE

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 21 chart11 AEO

 BON TON

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 21 chart12 BONT

GAP

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart13 GPS

GAMESTOP

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart14 GME

SEARS

Retail Callouts (8/22): 16 SIGMAs for The Week’s EPS - 8 22 chart15 SHLD

OTHER NEWS

HD - The Home Depot Names Craig Menear CEO, Effective November 1, 2014

(http://ir.homedepot.com/phoenix.zhtml?c=63646&p=irol-newsArticle&ID=1960265&highlight=)

  • "The Home Depot®, the world's largest home improvement retailer, announced that Craig Menear, currently president, U.S. retail, has been named CEO and president, effective November 1, 2014, and has been elected to the company's board of directors, effectively immediately. Current chairman and CEO Frank Blake will remain chairman."

DG, FDO, DLTR - Family Dollar Board of Directors Rejects Proposal from Dollar General Based on Antitrust Issues

(http://investor.familydollar.com/investors-relations/news-releases/Press-Release-Details/2014/Family-Dollar-Board-of-Directors-Rejects-Proposal-from-Dollar-General-Based-on-Antitrust-Issues/default.aspx)

  • "Family Dollar Stores, Inc. announced today that its Board of Directors has unanimously rejected the non-binding proposal made by Dollar General Corporation on the basis of antitrust regulatory considerations. In addition, the Family Dollar Board unanimously reaffirmed its recommendation in support of the merger agreement with Dollar Tree, Inc."

UPS - UPS confirms malware breach at 51 stores

(http://www.chainstoreage.com/article/ups-confirms-malware-breach-51-stores)

  • "UPS Stores, a subsidiary of United Parcel Service, said that a security breach may have led to the theft of customer credit and debit data at 51 UPS stores in the United States."
  • "In a statement, the company said that customers who had used their debit or credit cards at affected locations (which are listed on the UPS site) from Jan. 20 to Aug. 11 may have been exposed to the malware. However, the company noted, exposure began after March 26 in most cases."

LUX - Luxottica to Discuss CEO's Possible Departure at Next Board Meeting

(http://online.wsj.com/articles/luxottica-to-discuss-ceos-departure-at-next-board-meeting-1408621030)

  • "The world's largest eyewear maker, Luxottica Group SpA, said Thursday that it will discuss the possible departure of Chief Executive Andrea Guerra at its next board meeting."

BRBY - Burberry chief executive sells more than £5m of luxury brand's shares

(http://www.theguardian.com/business/2014/aug/21/burberry-chief-executive-christopher-bailey-sells-shares)

  • "Burberry chief executive Christopher Bailey has sold £5.2m of shares in the luxury fashion company, four months after taking over from predecessor Angela Ahrendts."
  • "Bailey has offloaded 68,667 shares and nearly three quarters of two sets of performance related shares granted in 2011 and 2009 when he was the company's chief creative officer and which recently vested. It is understood that nearly half of the shares granted under the performance related schemes were sold to cover taxes. Of the remainder, half were retained and half were cashed out."

DDS - Dillard's Announces CFO Departure

(http://www.sec.gov/Archives/edgar/data/28917/000002891714000136/dds-08222014x8k.htm)

  • "On August 22, 2014, Dillard’s, Inc.  announced that James I. Freeman, Senior Vice President and Chief Financial Officer of the Company and a director, informed the Board of Directors of his intent to retire as an executive officer of the Company effective February 1, 2015. Mr. Freeman will remain on the Board of Directors."