Retail Callouts (2/18): Chain Store Sales, NKE, KATE, LULU, FOSL, URBN

Takeaway: NKE patent makes customized product design easier. LULU's first store in Dubai. KATE/FOSL watch agreement.


Retail Callouts (2/18): Chain Store Sales, NKE, KATE, LULU, FOSL, URBN - 2 17 chart2



ICSC RETAIL SALES (80 General Merchandise Stores)


Takeaway: Comps decelerated this week on a 1, 2, and 3 year basis. Through the first 7 weeks of the year the trend has been down and to the right against the easiest compares of the year. Compares get tougher as we enter April.

Retail Callouts (2/18): Chain Store Sales, NKE, KATE, LULU, FOSL, URBN - 2 18 chart1B

Retail Callouts (2/18): Chain Store Sales, NKE, KATE, LULU, FOSL, URBN - 2 18 chart3








Takeaway: To see our full note on the KATE/FOSL agreement CLICK HERE 


NKE - Nike Developing Technology to Make Customization Easier


Retail Callouts (2/18): Chain Store Sales, NKE, KATE, LULU, FOSL, URBN - 2 18 chart4

Takeaway: This seems a little bit odd, but after we re-read the article a few times it made perfect sense. Nike is about to revolutionize the way we design, manufacture and buy sneakers. FlyKnit technology is a big part of that. That is, a shopper could go into a store design a shoe, grab a burrito at Chipotle, and come back an hour later and leave with the new custom shoe that was assembled in the back room. This is one of the only industries where we haven't seen any major disruption to the typical wholesale model in at least 40 years. Nike is starting to push the envelope on that front.

We identified how important customization was to the 18-24 year old demographic, with 100% of customers who shop for athletic footwear online saying that the ability customize was the reason why. One of the problems with consumers designing shoes is that they can't see the end product. Now with this patented technology, consumers can put on a pair of goofy glasses and design 3D shoes in store.

Retail Callouts (2/18): Chain Store Sales, NKE, KATE, LULU, FOSL, URBN - 2 18 chart6



LULU - First Lululemon store in Dubai to open this year



Takeaway: This a new development for LULU and should give the brand additional touch points outside of the 40 new doors it will add in Europe and Asia by 2017 with very little risk. LULU has used licenses in the past to build it's geographic reach with mixed success. The Japanese joint venture shuttered in 2008. But, the Australian joint venture was taken in house in 2012. AUS/NZ now has 30 doors. One of the arguments we hear on LULU all of the time is centered on the company's slow paced expansion. The company has always taken a measured approach when it comes to new markets. First using a showroom to  measure demand and then a store 12-18 months later. That made sense for the company when the finance organization was extremely weak, but we think that new CFO Stuart Haselden has the ability to build the financial/logistical infrastructure in a way that supports a more rapid expansion effort.




FOSL - 4Q14 Earnings

Retail Callouts (2/18): Chain Store Sales, NKE, KATE, LULU, FOSL, URBN - 2 18 chart5


Gilt - A $50M investment may make Gilt relevant again



Tory Burch to Open 4th Canadian Location at Sherway Gardens



AAPL - Report: Apple redesigning its retail stores



URBN - Urban Outfitters e-commerce fulfillment center moving to Pennsylvania



TSCDY - Report: Tesco may lay off 10,000 workers



Ace Hardware pilots same-day delivery



ASNA - Ascena to Close Brothers Brand



AMZN - Regulations may ground's drones


Cartoon of the Day: Hard-Headed Bears

How's this for "hard data"? So far, 107 of 497 S&P 500 companies have reported aggregate sales and earnings growth of 4.4% and 13.2% respectively.

read more

Premium insight

McCullough [Uncensored]: When People Say ‘Everyone is Bullish, That’s Bulls@#t’

“You wonder why the performance of the hedge fund indices is so horrendous,” says Hedgeye CEO Keith McCullough, “they’re all doing the same thing, after the market moves. You shouldn’t be paid for that.”

read more

SECTOR SPOTLIGHT Replay | Healthcare Analyst Tom Tobin Today at 2:30PM ET

Tune in to this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

read more

Ouchy!! Wall Street Consensus Hit By Epic Short Squeeze

In the latest example of what not to do with your portfolio, we have Wall Street consensus positioning...

read more

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more