Mizuho: Expect Mixed November Comps For The Gap, L Brands And Zumiez

Betty Chen of Mizuho Securities is expecting most retailers to demonstrate “flattish” sales trends in their November sales reports. “Lower gas prices and improving unemployment trends have not been overtly visible in overall consumer spending,” Chen wrote in a note on Tuesday. The analyst adds that seasonal purchases may have been aided due to cooler weather in the North East and Mid-West along with an elongated promotional days. Chen expects

to report consolidated November comps of negative three percent to zero percent, below consensus expectations of negative 1.7 percent. In the same month last year the company reported a positive two percent comp. Chen expects

to report November same-store sales of positive five percent to seven percent, above consensus expectations of positive 3.8 percent. In the same month last year the company reported a negative five percent comp. Chen expects

to report November comps of positive two percent to four percent, generally in-line with consensus expectations of positive 2.7 percent. In the same month last year the company reported a positive 1.7 percent comp. Shares of The Gap are Buy rated with a $45 price target. Shares of L Brands are Neutral rated with a $76 price target. Shares of Zumiez are Neutral rated with a $30 price target.