Retail Callouts (7/15): Back-To-School, BBY, GES

Takeaway: NRF early reads on BTS markedly pessimistic as compares get tougher and wage pressure builds. Marciano out as CEO, but turning over control?

NRF Expects Dip in B-t-s Spending

(http://wwd.com/retail-news/trends-analysis/nrf-back-to-school-forecast-dip-10185381/)

 

For starters we don't trust the NRF forecasts farther than we throw them, but this is a markedly pessimistic view of the BTS shopping season from the Retail's most powerful lobbying organization. The -5.8% (slightly negative on a 2yr basis) drop in spending per household isn't quite as bad as the -7.8% estimate in 2013, but that came after a 14% rip in 2012. Across retail compares get markedly tougher starting in 2Q and extending throughout the rest of the year. That's also the same time we should start to see the sprouts of wage pressures due to the 800 pound gorilla's (WMT) decision to raise the minimum wage in its stores to $9.00. We haven't seen the real pressures from wages start to hit retail P&Ls because seasonal hiring hasn't really started yet. That changes in a few weeks.

Retail Callouts (7/15): Back-To-School, BBY, GES - 7 15 chart1

Source: NRF

 

BBY - While You Were Sleeping, Best Buy Was Selling $200 Gift Cards for $15

(http://time.com/3958414/best-buy-gift-cards/)

 

Oops...

This quote says it all.

“I am an employee of Best Buy, and we are very good at honoring our mistakes, however, mistakes this public with 1000s of people ordering something super discounted by mistake will most likely get canceled,” one Redditor wrote. “In the mean time, I went ahead and ordered 2, but chances are, we’re all getting a refund.”

 

GES - Paul Marciano Announces His Successor As Guess?, Inc. CEO

(http://investors.guess.com/phoenix.zhtml?c=92506&p=irol-newsArticle&ID=2067762)

 

Arguably the best thing that could happen to GES is the Marciano Brothers both go away. But we're really not seeing that happen. Paul Marciano announced his successor as CEO, but will remain Chief Creative Officer AND takes the title of Chairman from his big bro. In other words, he's not going anywhere.  Maurice will remain a director, and has been named Chairman Emeritus. In other words, he's not going anywhere. Anyone who knows the Marciano brothers also knows that as long as they are around, they're running the company -- regardless of a shift in CEO titles.

 

 

OTHER NEWS

 

LZB - La-Z-Boy Adjusts to More Than Recliners

(http://www.wsj.com/articles/la-z-boy-adjusts-to-more-than-recliners-1436917459)

 

LUX - Fabio d’Angelantonio Exits Luxottica

(http://wwd.com/business-news/human-resources/fabio-dangelantonio-exits-luxottica-10184864/)

 

APP - Standard General Sues Dov Charney for Breach of Contract

(http://wwd.com/business-news/legal/standard-general-sues-dov-charney-for-breach-of-contract-10186087/

 

QVC to open first West Coast distribution center

(http://www.retailingtoday.com/article/qvc-open-first-west-coast-distribution-center)


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

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more

Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

read more

Europe's Battles Against Apple, Google, Innovation & Jobs

"“I am very concerned the E.U. maintains a battle against the American giants while doing everything possible to sustain so-called national champions," writes economist Daniel Lacalle. "Attacking innovation doesn’t create jobs.”

read more

An Open Letter to Pandora Management...

"Please stop leaking information to the press," writes Hedgeye Internet & Media analyst Hesham Shaaban. "You are getting in your own way, and blowing up your shareholders in the process."

read more