Citing what they consider will be a Christmas spending season that exceeds expectations, Wedbush maintains their "Outperform" rating on GSI Commerce (NASDAQ:GSIC).
Wedbush said, "We expect online holiday spending to outperform expectations given the strong Black Friday, Cyber Monday, and follow through spending. We are slightly raising our Q4 and 2011 revenue estimates and given the spending strength it is reasonable to expect above consensus results. We are increasing our Q4 and FY11 revenue estimates by $10 million to $1.36 billion and 1.57 billion. We are maintaining our pro forma EPS estimates."
GSC closed Thursday at $24.46, up by $0.48, or 2.00 percent. Wedbush has a price target on them of $33.
Showing posts with label Black Friday. Show all posts
Showing posts with label Black Friday. Show all posts
Friday, December 3, 2010
Wednesday, December 1, 2010
FBR on Lowes (NYSE:LOW), Home Depot (NYSE:HD)
FBR Capital came away from an analyst day with Lowes (NYSE:LOW) positive on their outlook in the short term, based on Black Friday and their new prototype store size, but aren't convinced on their pricing strategy, and how it's being implemented.
FBR said, "We tweak our estimates and adjust our price target up slightly on Outperform-rated Lowe's (LOW), on the heels of its analyst day yesterday in Mooresville, North Carolina. Capital allocation and the reduction by the company of its new-store prototype size, from 117,000 square feet to 103,000, were clear positives. Additionally, in the shorter term, the tone surrounding this past Black Friday and the related weekend's sales trends was positive, in our view. The clear offsets are housing and the related deceleration in home values, as measured by Case-Shiller (see herein); 84% of planned home improvement projects also relate to smaller-ticket (sub-$500) - so larger-ticket spending by the consumer remains a pressure. Finally, relating to LOW versus HD, we are not sold on the company's "price optimization" strategy, as this seems somewhat hypocritical: "Price is the most important constant," yet, in certain cases and "patch areas" (pricing zones), the company is "surgically" raising prices....
"For LOW we adjust our 2010E EPS estimate to $1.38 from $1.36, and this compares with the Street consensus estimate of $1.41 and guidance of $1.37 to $1.40. For 2011E, we adjust our estimate to $1.57 from $1.53, and this compares with the Street consensus estimate of $1.64. For HD, we adjust our 2010E EPS estimate to $1.91 from $1.95, and this compares with the Street consensus estimate of $1.95 and guidance of $1.94. For 2011E, we adjust our estimate to $2.10 from $2.15, and this compares with the Street consensus estimate of $2.21.
"Lowe's (Outperform); Home Depot (NYSE:HD) (Market Perform). We adjust our price target for LOW to $24 from $23, and this reflects a 14.1x multiple on our 2012E EPS estimate of $1.71, a 7% premium to the current NTM S&P 500 multiple of 13.1x. For HD, we maintain our price target of $33, which reflects a 14.4x multiple on our 2012E EPS estimate of $2.30, a 10% premium to the current NTM S&P 500 multiple of 13.1x."
Lowes was trading at $23.51, gaining $0.81, or 3.57 percent at 1:32 PM EST. Home Depot was also up, trading at $31.56, rising by $1.35, or 4.47 percent.
FBR said, "We tweak our estimates and adjust our price target up slightly on Outperform-rated Lowe's (LOW), on the heels of its analyst day yesterday in Mooresville, North Carolina. Capital allocation and the reduction by the company of its new-store prototype size, from 117,000 square feet to 103,000, were clear positives. Additionally, in the shorter term, the tone surrounding this past Black Friday and the related weekend's sales trends was positive, in our view. The clear offsets are housing and the related deceleration in home values, as measured by Case-Shiller (see herein); 84% of planned home improvement projects also relate to smaller-ticket (sub-$500) - so larger-ticket spending by the consumer remains a pressure. Finally, relating to LOW versus HD, we are not sold on the company's "price optimization" strategy, as this seems somewhat hypocritical: "Price is the most important constant," yet, in certain cases and "patch areas" (pricing zones), the company is "surgically" raising prices....
"For LOW we adjust our 2010E EPS estimate to $1.38 from $1.36, and this compares with the Street consensus estimate of $1.41 and guidance of $1.37 to $1.40. For 2011E, we adjust our estimate to $1.57 from $1.53, and this compares with the Street consensus estimate of $1.64. For HD, we adjust our 2010E EPS estimate to $1.91 from $1.95, and this compares with the Street consensus estimate of $1.95 and guidance of $1.94. For 2011E, we adjust our estimate to $2.10 from $2.15, and this compares with the Street consensus estimate of $2.21.
"Lowe's (Outperform); Home Depot (NYSE:HD) (Market Perform). We adjust our price target for LOW to $24 from $23, and this reflects a 14.1x multiple on our 2012E EPS estimate of $1.71, a 7% premium to the current NTM S&P 500 multiple of 13.1x. For HD, we maintain our price target of $33, which reflects a 14.4x multiple on our 2012E EPS estimate of $2.30, a 10% premium to the current NTM S&P 500 multiple of 13.1x."
Lowes was trading at $23.51, gaining $0.81, or 3.57 percent at 1:32 PM EST. Home Depot was also up, trading at $31.56, rising by $1.35, or 4.47 percent.
Amazon (Nasdaq:AMZN), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), BestBuy (NYSE:BBY) Surpass 4 Million Unique Online Visitors Friday
Amazon (Nasdaq:AMZN), Wal-Mart (NYSE:WMT), Target (NYSE:TGT) and BestBuy (NYSE:BBY) all generated over 4 million unique visitors on Black Friday, helping increase online sales by 9 percent over last year.
Online sales this year on Black Friday reached $648 million, up from the $595 million generated in 2009.
Canaccord noted, "Market researcher comScore (Nasdaq:SCOR) noted that cyber spending was up big this past Black Friday, with online sales coming in at $648 million, up 9% from $595 million last year. Many were shopping at Amazon.com, which saw a 25% increase in unique visitors compared with the same day last year. The website surpassed four million unique visitors on Friday, with Wal-Mart, Target and BestBuy also hitting the mark. Consumers seemed to have more of an appetite for online deals than plates of turkey, with $407 million of sales recorded on the Thanksgiving holiday versus $318 million last year, an increase of 28%."
Amazon closed Tuesday at $175.40, dropping $4.09, or 2.28 percent. Wal-Mart ended the trading day at $54.09, up by $0.24, or 0.45 percent. Target pushed up to $56.94, rising by $0.61, or 1.08 percent. Best Buy fell to $42.72, falling $0.69, or 1.59 percent.
Trading volume for all the companies was above the 3-month average, with Wal-Mart making the biggest move.
Online sales this year on Black Friday reached $648 million, up from the $595 million generated in 2009.
Canaccord noted, "Market researcher comScore (Nasdaq:SCOR) noted that cyber spending was up big this past Black Friday, with online sales coming in at $648 million, up 9% from $595 million last year. Many were shopping at Amazon.com, which saw a 25% increase in unique visitors compared with the same day last year. The website surpassed four million unique visitors on Friday, with Wal-Mart, Target and BestBuy also hitting the mark. Consumers seemed to have more of an appetite for online deals than plates of turkey, with $407 million of sales recorded on the Thanksgiving holiday versus $318 million last year, an increase of 28%."
Amazon closed Tuesday at $175.40, dropping $4.09, or 2.28 percent. Wal-Mart ended the trading day at $54.09, up by $0.24, or 0.45 percent. Target pushed up to $56.94, rising by $0.61, or 1.08 percent. Best Buy fell to $42.72, falling $0.69, or 1.59 percent.
Trading volume for all the companies was above the 3-month average, with Wal-Mart making the biggest move.
Tuesday, November 30, 2010
The Finish Line (Nasdaq:FINL), Foot Locker (NYSE:FL), Dick's Sporting Goods (NYSE:DKS), True Religion (Nasdaq:TRLG), VF Corp (NYSE:VFC) Performing As Expected
FBR Capital said after visiting the physical locations of retailers like The Finish Line (Nasdaq:FINL), Foot Locker (NYSE:FL), Dick's Sporting Goods (NYSE:DKS), True Religion (Nasdaq:TRLG) and VF Corp (NYSE:VFC), they see the stores performing as they thought they would during Black Friday, with The Finish Line, Foot Locker and Dick's Sporting Goods enjoying significant traffic.
"On Black Friday, we visited stores in the Washington, D.C. metro area, including retail locations of The Finish Line (Nasdaq: FINL)(Outperform), Foot Locker (Outperform), Dick's Sporting Goods (Outperform), True Religion (Outperform), and VF Corp's (Market Perform) The North Face...We did not expect Black Friday traffic at any of our targeted stores to be "newsworthy" given that these stores are not doorbuster destinations offering loss-leading items or major discounts, particularly in light of inventory positions supportive of full-price selling. We also believe that an ongoing shift to online holiday sales and discounting earlier in the shopping season are chipping away at Black Friday's importance to overall brick and mortar apparel and footwear holiday sales.
"Relative to overall mall traffic, traffic at Finish Line and Foot Locker stores was strong. Traffic at Dick's Sporting Goods was also robust. At the Georgetown location of The North Face and the Georgetown and Pentagon City locations of True Religion, in-store traffic was relatively light. Lighter traffic at The North Face and True Religion did not surprise or concern us, given that these are not traditional Black Friday destinations as a result of their premium price points and lack of discounting.
"Overall, what we saw on Black Friday did not sway our thesis on any of our covered companies, but reinforced our positive view of athletic footwear retailers, given what we expect to be continued top-line momentum on solid margins. We think limited and targeted discounting at Finish Line and Foot Locker bode well for gross margins, while the strong product cycle in athletic footwear should continue to support the top line, even in the face of difficult year-over-year comparisons."
The Finish Line closed Monday at $17.57, dropping $0.18, or 1.01 percent. Footlocker ended the session at $19.05, gaining $0.40, or 2.14 percent. Dicks Sporting Goods was at $34.38. falling $0.35, or 1.01 percent. True Religion Apparel closed up at $22.80, increasing by $0.13, or 0.57 percent. V.F. Corporation closed at $83.33, down by $0.49, or 0.58 percent.
"On Black Friday, we visited stores in the Washington, D.C. metro area, including retail locations of The Finish Line (Nasdaq: FINL)(Outperform), Foot Locker (Outperform), Dick's Sporting Goods (Outperform), True Religion (Outperform), and VF Corp's (Market Perform) The North Face...We did not expect Black Friday traffic at any of our targeted stores to be "newsworthy" given that these stores are not doorbuster destinations offering loss-leading items or major discounts, particularly in light of inventory positions supportive of full-price selling. We also believe that an ongoing shift to online holiday sales and discounting earlier in the shopping season are chipping away at Black Friday's importance to overall brick and mortar apparel and footwear holiday sales.
"Relative to overall mall traffic, traffic at Finish Line and Foot Locker stores was strong. Traffic at Dick's Sporting Goods was also robust. At the Georgetown location of The North Face and the Georgetown and Pentagon City locations of True Religion, in-store traffic was relatively light. Lighter traffic at The North Face and True Religion did not surprise or concern us, given that these are not traditional Black Friday destinations as a result of their premium price points and lack of discounting.
"Overall, what we saw on Black Friday did not sway our thesis on any of our covered companies, but reinforced our positive view of athletic footwear retailers, given what we expect to be continued top-line momentum on solid margins. We think limited and targeted discounting at Finish Line and Foot Locker bode well for gross margins, while the strong product cycle in athletic footwear should continue to support the top line, even in the face of difficult year-over-year comparisons."
The Finish Line closed Monday at $17.57, dropping $0.18, or 1.01 percent. Footlocker ended the session at $19.05, gaining $0.40, or 2.14 percent. Dicks Sporting Goods was at $34.38. falling $0.35, or 1.01 percent. True Religion Apparel closed up at $22.80, increasing by $0.13, or 0.57 percent. V.F. Corporation closed at $83.33, down by $0.49, or 0.58 percent.
Monday, November 29, 2010
Apple's (NASDAQ:AAPL) MacBook Air, iPad Sales Strong
It appears Apple's (NASDAQ:AAPL) MacBook Air has become the choice of Mac fans of many ages, and has been enjoying robust sales so far in the Christmas season. Also surprising some was the demand for iPods, which some thought was becoming a dead category.
Piper Jaffray analyst Gene Munster said, "We noticed that the iPad is gaining traction (driven by lower price vs. the Mac) among demographics in which the Mac has historically not been successful. The bottom line is that Apple's addressable market is expanding with the iPad, and as a result, we believe the potential for upside from the iPad increases over the next 12 months."
As far as the iPod, some third-party stores were experiencing shortages of the product because of the unexpected demand.
Now the question is, as with all retailers during the Christmas holiday, how much will their margins be affected by the need to cut prices in order to generate sales.
Most of Apple's products had prices cut more moderately than their competitors based on brand strength.
Apple was trading at $313.02, falling $1.98, or 0.63 percent at 1:56 PM EST.
Piper Jaffray analyst Gene Munster said, "We noticed that the iPad is gaining traction (driven by lower price vs. the Mac) among demographics in which the Mac has historically not been successful. The bottom line is that Apple's addressable market is expanding with the iPad, and as a result, we believe the potential for upside from the iPad increases over the next 12 months."
As far as the iPod, some third-party stores were experiencing shortages of the product because of the unexpected demand.
Now the question is, as with all retailers during the Christmas holiday, how much will their margins be affected by the need to cut prices in order to generate sales.
Most of Apple's products had prices cut more moderately than their competitors based on brand strength.
Apple was trading at $313.02, falling $1.98, or 0.63 percent at 1:56 PM EST.
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