Sinagapore appears to be off to a strong start for Genting and LVS. Here are our notes.



Overall Market:

  • Currently, VIP/Mass is roughly 50/50.
  • Commissions paid on direct VIP play are based on a percentage of Rolling Chip (RC) buy-in and the number of times the initial buy-in is turned over, plus 0.1% of RC towards expenses (rooms & F&B allowance)
    • Commissions are accounted for as rebates (i.e. contra-revenue deductions against gross gaming revenues)
  • In order to qualify for the lower 5% VIP tax rate, players must:
    • Buy-in with a minimum of S100,000 – which allows the government to document how much and where the cash came from
    • Inform the CRA (Casino Regulatory Authority) one hour before play
    • Follow anti-money laundering rules (unlike in Macau, you can’t just come with a bag of cash and play)
    • Declare win/loss to the government
    • The min S$100,000 initial buy-in qualifies a player as VIP for 12 months – regardless of how much he gambles on repeat visits
  • Marketing for both properties has been very limited thus far.  Marketing of the casino is prohibited in Singapore; however, the properties can market their other attractions but have postponed large marketing efforts pending their respective “grand openings.”
  • Given that a lot of the Singaporean players are “new gamers,” the house advantage may be abnormally high initially
  • Despite a different mix of table games (i.e. more roulette) than Macau, hold rates should be similar.  MBS doesn’t have insurance on its bets, while RWS does.  Insurance increases the house advantage but also slows play so there is a trade off.  Insurance is popular with Southeast Asian players


Junket operations:

  • There are no licensed junkets at the moment but currently there are around 30 junket operators that have submitted with the CRA.  Likely that half a dozen junket operators will get licensed by the end of July.
  • In order to operate at either RWS or MBS, the properties must sponsor the junket’s license application.
    • MBS is not sponsoring any of the junkets applications at this time and will take a wait and see approach for now
    • Genting is sponsoring several of the junket applications and is happy to do business with junket operators
  • Some of the junket operator applications are from Singaporean-based junkets and have already been sourcing and providing credit to Singaporean customers who play at Genting’s Highlands Malaysian property Malaysia and Star Cruises ships operating in the vicinity.  Most of these junket operators already have strong ties with Genting, and hence it makes sense that Genting is welcoming their business and sponsoring their applications.
  • We have heard that Genting currently has “junkets” currently buying in millions of rolling chips and distributing them to their clients in the form of credit
  • We think that the government may over time loosen licensing requirements for junket operators, but that will take time
  • We think that the rolling chips generated by junkets will be a relatively small percentage of the VIP market given the licensing hurdles



  •  State of the property & completion schedule
    • Casino:
      • Started with 70 VIP and 442 mass tables
      • Have the ability to operate up to 139 VIP tables and up to 650 Mass tables
      • Currently operating 127 VIP tables and have 28 private salons on the 3rd and 4th floors
      • Started with 1,450 slots and can get to 1,650.  They are also adding over 300 electronic tables games (roulette)
      • 3rd floor is premium mass play and 4th floor is VIP play
      • RC programs start with buy ins of S$50k
    • Hotel:
      • Currently 963 rooms are open (up to the 22nd floor), with the remaining rooms opening just after the opening party on June 23rd
      • Will likely comp between 20-30% of the rooms but it remains to be seen
    • Retail:
      • Approximately 90% of the retail space is currently leased and 20% of the space is currently open
      • They hope to have 70% of the space open by September, 95% by December and grand opening of the Louis Vuitton space by 1Q2011
    • Other:
      • Museum should open by Dec 2010
      • Sky park will be partly open by the grand opening and complete by August
    • Spending:
      • As of March 31st, they had $1.4bn in cash left to spend, $1bn to be spent in 2010, and $400mm in 2011
  • Commissions & VIP play:
    • For the first month of operations, MBS offered very low commissions ranging from 0.3% to 1% of RC plus 0.1% toward expenses
    • Subsequently, commissions were raised to 0.6% to 1.4% of RC plus 0.1% toward expenses
    • Despite very low commissions, the first month of operations produced strong volumes, which subsequently dropped and then resumed growth once commission levels were raised to market levels
    • Roughly 60% of the VIP players are currently Singaporean but that number is a bit misleading since there are many Malaysians and Indonesians who are permanent residents in Singapore
    • While an initial minimum buy-in of S$100,000 qualifies a player as VIP (i.e. 5% tax rate), all the programs have 30 days lives which require fresh buy-ins.  Almost all the VIP players at MBS buy in to various commission programs.
  • Visitation:
    • Have a bus terminal with 60 buses, but it isn’t fully up and running yet
    • Current visitation mix is roughly 30% Singaporean, 40% Malaysian, and 30% Indonesian
    • Currently have more than 20,000 average daily visitors coming through the casino and believe that they will get to 60-100k on weekends when they are fully open
    • Vast majority of Singaporeans just pay the daily S$100 fee rather than the S$2,000 annual fee
  • Mall:
    • Believe that the mall will be a big shopping destination
    • Tenant terms:
      • Base rents: $150-$200, closer to $150 when you net their free rents and TI incentives
      • Term: 3-5 years
      • Percentage rents: 7-12%
      • Sheldon thinks that the mall can do $200mm of NOI but $100mm ramping to $150mm is probably a more realistic assumption
  • Costs:
    • Have 7,000 employees now and will likely have 7,700 when they are fully open (excluding the retail employees for whom they are not responsible).  Average yearly salary of $30k/year is a reasonable assumption.
    • Marketing/HVAC/other expenses are roughly $20-25mm per month.
  • Credit granting:
    • Usually know in advance when an incoming big player would want credit.  They have an extensive credit approval process and are supposedly taking very large reserves



  • Have a huge bus interchange--120 buses daily to and from Malaysia.
  • A high percentage of visitors from Malaysia are already their players but the Genting Highlands hasn’t taken much of a hit
  • Phase 2 will be completely open by the end of 2011 and will cost an incremental S$2.6BN to complete.  Phase 2 will consist of:
    • Arcade and Asian food court (“hawker” food) on the waterfront which is opening in 2 months
    • Maritime museum with a massive aquarium
    • 2 more hotels--all suites are underground and have “ocean” views which will open in mid-2011
    • Waterpark will open at the end of 2011
  • Universal Studios:
    • Designed to handle up to 25k daily visitors people.  Currently, they are capping the number of ticket sales to 8k mid-week and 10k on weekends
    • The park is sold out for the whole month
    • It should be fully open within a few months, at which time they expect to be selling between 15-20k tickets per day
    • Haven't even started marketing the park yet
    • Ticket prices range from S$66-74/ day (depending on whether they are peak or off peak purchases)
    • Pay Universal a royalty fee but operate the park themselves
    • At current visitation levels, the park is still EBITDA negative
  • Have about 10,500 employees that make roughly S$2,000-2,500/month
  • Hotel occupancy currently at 75% right now
    • Festive (the family hotel with 400 rooms) is almost entirely cash
    • Crockfords (120 suites) is 100% comped and for VIP players only
    • Hotel Michael (300 rooms) is roughly 40% comped
    • Hard Rock is roughly 30% comped
    • Rates are roughly S$300-350
  • Casino details:
    • They are currently operating more than 300 tables and have the ability to operate up to 500 tables
    • Opened with 1,200 slots but now have roughly 1,500-1,600 slots. Can have up to 2,000 machines
    • Orchid club for Singaporeans only
    • Despite huge gaming volumes, they still believe that their business is ramping, as marketing of the property has only just started
    • Smoking is permitted in 70% of the casino, but they have designated only 50% of the space to smoking areas
    • Maxims is their members-only premium, mass casino with 8 private salons with minimum bets of S$500 and Crocksford is their VIP casino with minimum bets of S$2,000 and has 14 private salons
    • Commission rates on various buy-ins and turns (add .1% for comps to all levels):
      • S$30-99k: 0.6%
      • S$100-999k: 1%
      • S$1mm-1.99mm: 1.1%
      • S$2-4.99mm: 1.2% - 1.3% (depending on number of turns)
      • > S$5mm: 1.3-1.4% (depending on number of turns)
    • A fair amount of players don't want to register for programs in order to remain anonymous; hence, they get no rebates/commissions.


"Market Rumors"

  • Genting is rumored to be at risk of investigation by the CRA for running illegal junket operations, loan sharking, and side insurance betting
  • MBS is rumored to be subject to government fines for its delayed opening

The Derivative Effect of Tight Liquidity in Europe

Conclusion: A lack of lending in Europe will likely lead to an incremental slowing of growth in China.


If we have learned anything in the last few years, it is that all major markets are connected.  The classic example of course, was the subprime crisis in the United States, which roiled almost all global markets across asset classes in 2007 and 2008.


The 2010 consensus global risk factor is European sovereign debt and the risk of defaults.  Our view is that consensus is still not negative enough on the potential implications of a global sovereign debt unwind, primarily because believe the issue related is still deemed to be primarily specific to Europe.  But, as ever, the global markets are interconnected with trade being a primary connector.


Specific to that, China reported an export number that was up 48.5% year-over-year in May, which exceeded most estimates.   As it related to the 27-nation European Union, exports were up 34.4%.  The European Union accounts for the largest share of Chinese imports (or exports from China as this data measured) followed closely by the United States.  In May, this number amounted to $25.9 billion in exports to the European Union, or roughly 20% of total Chinese exports.  Clearly, any slowdown in Europe will have a direct impact on European purchasing power and Chinese export growth.


At face value, the export data from May seems to suggest that sovereign debt issues had a negligible impact on global commerce and, if anything, the issues were specific to troubled countries within the European Union.   Unfortunately, exports, like many economic indicators, are backwards looking in nature.  In fact, according to the Chinese Ministry of Commerce, it typically takes Chinese companies two months or so to fulfill orders.  Therefore the May export number actually reflects orders from March, which would predate any slowdown in the European Union caused by sovereign debt turmoil.


As always, it is difficult to get a real time read of the underlying growth in an economy until after the fact.   While we can read the tea leaves from company earnings announcements and delve into economic releases from the government, neither of these are typically real time, let alone leading indicators.  One real time leading indicator though is the amount of liquidity in an economy at any time, which can be measured by the banking system’s willingness to lend.


As it relates to liquidity in Europe, we have been very focused recently on European Central Bank overnight deposit facility usage.  As outlined in the chart below, in lieu of lending to each other, banks are depositing funds with the European Central bank at record levels.   The best way to think about this chart is as a measure of banks’ willingness to lend to another bank, so their inherent trust in the counterparty’s credit worthiness.  As we can see, there is now less trust, on this basis of more money being deposited with the European Central Bank versus being lent on a short term basis to other banks, than around the time of the implosion of Lehman Brothers.


European banks are, en masse, choosing to deposit funds with European Central Bank, at rates of just 0.25%, as opposed to lending to other banks at higher rates.  The decision is primarily based on a concern over the credit worthiness of other European Banks due to their holdings of European sovereign debt.


So, what exactly does this have to do with China?  Very simply, the less banks lends to each other, the less that is lent to consumers and businesses.  As money piles up in the ECB deposit facility it is not circulated and used in the economy, therefore it is not supporting commerce.


In the attached chart we compare deposits in the ECB facility to Chinese exports.  Deposits hit an extreme of $210 billion in November of 2008, which was a dramatic increase from October 2008 of $19.9BN, so indicative of declining intra-bank lending and overall liquidity.  By February 2009, on a reported basis, exports from China to Europe were at 56% of prior levels.  Clearly, as liquidity was pulled out of the system and banks stopped lending, business slowed orders from China and this was eventually reflected in Chinese exports numbers a couple of months into the future.


Coincident with this dramatic drop off in exports to Europe of course was the decline of all things related to sustaining Chinese growth. Think oil, copper, steel, plastic, most basic materials, and the multiple on the Chinese stock market.  As orders from Europe slowed for Chinese goods, so did the demand for raw inputs.  It was not coincidence that the price of Oil bottomed in February of 2009, which was the same month, as noted above, that year-over-year declines in exports to China’s largest trading customer, the European Union, were at their worst.


It is likely that we have yet to see the worst of the sovereign debt issues in Europe, and we certainly haven’t seen the broader implications of the tightening of liquidity in Europe.  Obviously, to believe that the world is not interconnected and that European sovereign debt is an isolated issue is naïve at best.


Daryl G. Jones

Managing Director


The Derivative Effect of Tight Liquidity in Europe - ECB CHINESE EXPORTS

World Cup Chart Of The Day: Brazil

The intermediate term TREND line for the Brazil Bovespa Index remains broken at 66,687.


World Cup Chart Of The Day: Brazil - Bovespa

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German Economic Sentiment Cliff Dive

Position: Short France (EWQ)


While we typically don’t give credence to any one economic survey, the latest reading from ZEW aligns with our fundamental view on Germany.  The 6 month forward-looking  economic sentiment number fell off a cliff, registering 28.7 in June versus a Bloomberg forecast of 42.0 and the previous month’s reading of 45.8, while the current situation reading improved sequentially, registering -7.9 versus a forecast of -15 and the previous month’s reading of -21.6 (see chart below).


What’s our read-through on Germany?


In the last weeks we’ve pulled back on our long call on Germany, which was part of our Q2 theme call Sovereign Debt Dichotomy, even though the DAX is in positive territory YTD with the performance spread over Spain’s IBEX at 22% YTD.


The fundamentals still look bullish for Germany: unemployment has improved over the last months, down to 7.7% (versus Eurozone average of 10.1%), a weaker Euro is benefiting the country’s export base, and inflation looks stable over the medium term. We think this is showing up in the improvement in current sentiment survey.  However, we caution that sovereign debt contagion in the region and poor go-forward prospects for Chancellor Angela Merkel’s coalition government could provide formative headwinds over the medium term, which look to be reflected in the economic sentiment survey.


While we’re not calling for new elections in Germany, the government is a real concern that we’ll have on our radar, one that would be a significant destabilizing catalyst in Europe should elections need to be called. What’s clear is that Merkel’s coalition has lost its majority in the upper house of parliament (Bundesrat) since losing a critical election in the economically important state of North Rhine Westphalia in early May. Her choice to fund the Greeks as part of the €110 Billion loan package was a main point of contention that lost her the election and has since eroded her support. Further, her recently-issued four year €80 Billion package of austerity measures, which we view as largely positive, is being met with fierce opposition at home.


The next piece of the puzzle for the government is finding a replacement as President following the resignation of Horst Koehler last month after he made an inappropriate comment related to the country’s economic interest in being involved in the Afghanistan war. While the position is largely ceremonial, the void has nevertheless added further uncertainty to Merkel’s party. The announcement of the next President is scheduled for June 30th.


The cocktail of German bank exposure to countries with sovereign debt risk combined with the future uncertainty of the government are downside risks that we’ll be monitoring acutely. Stay tuned.


Matthew Hedrick



German Economic Sentiment Cliff Dive - zew

Squeezy: SP500 Risk Management Levels, Refreshed

This market is definitely doing its best to frustrate both bulls and bears. Yesterday was bearish. Today is bullish. Our longs (GS, BAX, and NKE, etc) feel great. Our shorts (EWQ, AXP, and SPY, etc) don’t.


We currently hold 10 longs and 9 shorts in the Hedgeye Virtual Portfolio. Only 2 of 9 short positions have positive P&L today (UUP and SHY).


As of 1PM EST we’re pushing up against yesterday’s 11:14AM intraday high of 1104. Yesterday we called it a critical immediate term TRADE line of resistance and it proved to be into the close. Today the bulls are running up against it again. A close above it would be as bullish as a close below it bearish. In our risk management model, closing prices matter most.


All the while, the intermediate and long term TREND and TAIL lines rest above and below this market’s last price (see chart). To a large extent, seeing this market rotate in between these TREND (1143) and TAIL (1082) lines perpetuates volatility.


The VIX itself is down a hefty -9% today to 26 and from an immediate term TRADE perspective that makes it broken finally as well. From an intermediate to long term perspective, the VIX remains in a very bullish position with TREND and TAIL lines converging in the 23-24 range.


Confusing short term price action on decidedly bearish volume is as confusing does.


We’re doing a whole lot of nothing for now. Watching and waiting for the close.



Keith R. McCullough
Chief Executive Officer


Squeezy: SP500 Risk Management Levels, Refreshed - S P

BBY: The TV Tell All


June 15, 2010


TV sales appear to be the culprit, directly and indirectly, in today’s BBY shortfall.  Expect the environment to heat up as inventories look bloated against lackluster sales trends. 




Embedded in today’s disappointing BBY results are a few key messages.  First, the shortfall came primarily in two areas, sales and expenses.  Domestic comps were weaker than expected, due in large part to weakness in the TV, entertainment, and media categories.  As it relates to TV’s, the negative low single digit performance was a measurable slow down from 4Q’s high single digit increases.  So why the weakness?  Management attributes the slowdown to lack of compelling promotions (thanks to Costco for pointing this out two months ago) in the category, both from a price and innovation perspective.  Of course, the benefit here is higher ASP’s than anticipated.  This quarter marked the lowest year over year decline in average selling prices for TV’s in over two years!  Good news?  Not really.  It’s clear that the consumer is highly motivated by price and without promotional activity, traffic suffers. 


As it pertains to expenses, management suggested the company’s SG&A was a bit over-budget in the first quarter at time when sales were described as being volatile.  This really leads to a question of execution and control.  Expenses and inventory are the two main areas that management should optimize in the wake of an unclear topline trend.  Unfortunately, both areas were not managed in synch with the choppiness in sales.  The balance between near term investments in SG&A (focused on store resets highlighting connectivity, development of a used video game business, and growth in mobile as well as international markets) and potential benefits to gross margins in the future is out of alignment.  With that said, we realize (and were reminded several times on the call) that the first quarter is  a) a small quarter and b) normally not a predictor of holiday upside/downside. 


Regardless of the importance of 1Q historically, it’s still worth noting that overall inventories increased 15% while sales were up 7%.  On a comp basis, US inventories increased 10% against a 1.9% increase in comp store sales. Either way we slice it, we believe a better time to buy TV’s is on the horizon.  Something has to give and it’s either a step-up in promotional activity led by BBY or a pick-up in vendor driven promotions in an effort to stimulate unit demand.   Either way, we’re likely to see the competitive environment change as efforts to boost sales and help mitigate inventory risk take place before the holiday season arrive in five short months. 


Eric Levine



BBY: The TV Tell All - BBY SIGMA





-A few weeks back we noted that Sears is looking to monetize its real estate by subleasing floor space within it’s existing (and operating) stores. It seems that Forever 21 may actually be a potential tenant, with word coming from Costa Mesa that the specialty retailer is in discussion to take a 40,000 square foot space inside a Sears store. While this is a unique arrangement for sure, being a landlord may actually be a better business than selling Craftsman tools. We do wonder however, how much control a mall-owner and its other tenants may have over what types of retailers are permitted to sublet Sears’ space.


-This year’s Best Department Store in the World award goes to U.K retailer, Selfridges. Yes, this is a real award given by the Intercontinental Group of Department Stores.


-Keep an eye on the rumor that Coach and JC Penney may be in talks to collaborate on an accessories line. Nothing is official but Coach’s CEO noted this could be a possibility. He further went on to note that the Coach brand would not be included in any such effort with JCP.





World Cup Drives More Demand for Indonesian Footwear Manufacturers - Indonesian shoe manufacturers has recently acquired additional orders worth US $360 mm from six international and important footwear brands, partly due to the forthcoming World cup held in South Africa this month, according to Aprisindo Indonesian Footwear Association for Indonesian shoe manufacturers. US-based, Nike Inc and New Balance; France-based, Lacoste, Japan’s Mizuno and Adidas Group and Puma from Germany are the six international key footwear brands, which have placed their future orders with Indonesian shoe manufacturers, owing to quality assurance. With the World Cup being held in South Africa later this month, the demand for shoes has further increased and close to 70% of the sports shoes required for the championship will be delivered by Indonesia. The new duties imposed on footwear produced in Vietnam and China has also helped the Indonesian shoe industry. <>

Hedgeye Retail’s Take:    We’re wondering who buys shoes to sit in front of a TV to watch the World Cup.  Now, jerseys on the other hand are a no brainer.  More importantly, we see here an example of how nimble the brands can be in shifting production throughout Asia to take advantage of favorable pricing dynamics. 


India Might Overtake US in Cotton Exports this Season - The Department said India is making ongoing improvements in ginning practices and export logistics, which are enhancing its long term competitiveness. China's growth as an importer is favoring in particular Indian exporters and the dramatic shift reflects both tight American supplies and the development of India's cotton sector, it said. Demand for cotton is being driven by China, the biggest textiles producer, whose consumption will rise by 1.5m bales to 49.0m bales. <>

Hedgeye Retail’s Take:  Hard to believe the U.S has one last stake in the ground in the apparel manufacturing process.  Quality has long been an issue with foreign cotton supply, but it appears that this is finally changing.  Overtime, this probably leads to some pricing opportunity as well as a more stable global crop given the weather dependence of the this key textile ingredient. 


Chinese Labor Hikes - A spate of suicides at the world’s largest factory has drawn international criticism of the Chinese manufacturing model, raising new questions about whether low-cost production is worth the potential consequences. The suicides have prompted the Taiwanese-owned company and others to increases salaries. But labor-rights groups say much more work is needed and low wages are only one part of the problem with China’s manufacturing industry. They argue that vast structural changes are required and that the world can no longer expect this country’s workers to work themselves to death to make consumer goods. All this has raised new questions about whether China has reached a critical juncture, moving away from being the world’s low-cost production center. Such a move is in line with the government’s ambitious but far-off goal of becoming an economy based on innovation by 2020.  <>

Hedgeye Retail’s Take:  One word: inflation. 


Sam's Club Focused on Apparel Offerings - If there is a bright spot for apparel at Wal-Mart Stores Inc., it may be at Sam’s Club. “We’re seeing good trends in apparel, and we’re bringing in new brands that are appropriate on a seasonal level,” Brian Cornell, CEO of Sam’s Club, said after the WMT annual meeting on June 4. In contrast, vice chairman Eduardo Castro-Wright characterized Wal-Mart’s apparel business as “disappointing” and “a work in progress.” Without the constraints of Wal-Mart’s “low-price leadership” strategy, Sam’s Club can sell department and specialty store brands but still at significant savings. The approach of Sam’s Club to apparel “is generated by aspirational brands and a treasure hunt vibe,” said Linda Hefner, executive vice president of merchandising. The warehouse club still sells organic cotton apparel. In addition, Sam’s Club features Nicole Miller New York, manufactured by Delta Galil, as a club channel offering for Sam’s; along with Levi’s boot-cut jeans, Calvin Klein shorts, Speedo swimsuits, Anne Klein Sport, DKNY, Reebok, Everlast, Champion, Cole Haan, Chaus and Lizwear. <>

Hedgeye Retail’s Take:  Maybe the discount stores should adopt the club’s merchandising strategy.  Limited SKU’s + national brands=simplicity. 


Hat World to Expand HQ - Hat World Inc. a multichannel retailer and manufacturer of hats and sports apparel, announced it will expand its Indianapolis headquarters and distribution operations. The company, which acquired two other sports apparel retailers in May, says the facility will allow it to consolidate its manufacturing and warehouse operations that are now located in  Wisconsin. Hat World, No. 381 in the Internet Retailer Top 500 Guide, says it plans to invest up to $22 mm to lease and equip the additional space. The retailer says it plans to begin hiring manufacturing and warehouse positions later this summer as it phases in up to 571 new jobs at its headquarters by 2015. <>

Hedgeye Retail’s Take:  It seemed like this business had run out of room to grow about three years ago!  Clearly there’s value and opportunity in operating the largest (and only) chain of headwear-specific stores. 


Former ARO Supplier Indicted on Fraud Charges - Douglas Dey, the owner of a former supplier of Aéropostale Inc., was arraigned on Monday in Brooklyn federal court in connection with a multimillion-dollar kickback scheme that also has ensnared Christopher Finazzo, the chain’s former chief merchandising officer. According to the U.S. Attorney’s Office in Brooklyn, the 28-count indictment — unsealed on Friday — charged the two with mail and wire fraud, money laundering conspiracy and conspiracy to violate the Travel Act. Finazzo was also charged with “causing Aéropostale to make a false statement in a report that was filed with the Securities and Exchange Commission.”  <>

Hedgeye Retail’s Take:  Given ARO’s post-Finazzo success, it’s fair to say this probably has little relevance beyond the headlines. 


Frederick's of Hollywood Looks to Expand Product Offerings Through Licenses - Frederick’s of Hollywood Group Inc. is looking to move the brand beyond intimate apparel. After licensing Blue by Yoo to produce and market a line of Frederick’s swimwear on an international basis, the firm is looking to expand into other product categories. In addition to swimwear, the company has identified domestic and international licensing opportunities that will allow them to expand beyond intimate apparel and into a lifestyle brand, which includes product categories such as fragrance, jewelry, accessories, footwear, headwear, handbags and costumes. The company is also exploring partnerships with international distributors in countries including South Korea, Brazil, Japan, China and Canada. Frederick’s of Hollywood recently began a strategic marketing initiative with the Hard Rock Hotel & Casino in Las Vegas and launched a social media and online marketing campaign.  <>

Hedgeye Retail’s Take:   Sounds like this strategy will need a bit of luck.  Frederick’s definitely has a brand image associated with lingerie and we wonder how easily it can be translated into other categories.


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