COMPANY HIGHLIGHTS
JWN - 4Q14 Earnings: Removing From Long Bench
Takeaway: We added JWN to our long bench on 10/16 following our Department Store Black Book. There are a lot of things to like about the name: e-commerce proficiency, brand portfolio, and square footage growth. But, we couldn’t get comfortable with the fact that it was operating in a space that has grown at a -2% CAGR over the past 20 years and needs to see 93mm square feet not just close, but exit the industry all together over the next 5 years. Since that time, the stock is up about 11%, in-line with the S&P. Now the company is guiding the mid-point of the earnings range to flat on 8% revenue growth. Either the company is sandbagging or this name is uninvestable trading up here at 20x next year's earnings. We're removing it from the long bench.
OTHER NEWS
Report: West Coast ports running at 50%-60% of capacity; retailers stockpile inventory
ANN - Ann Taylor Parent Said to Be Working With JPMorgan on Sale
VFC - VF Settles ITC Laser Denim Case
KORS - Report: Michael Kors joins Snapchat
(http://www.chainstoreage.com/article/report-michael-kors-joins-snapchat)
BBY - Best Buy adds Curbside app service in Bay Area stores
(http://www.chainstoreage.com/article/best-buy-adds-curbside-app-service-bay-area-stores)
H2O Plus Names Joy Chen CEO
