Brain Sozzi Saw 3 Retailers Making Deep Discounts On Super Saturday

Analyst Brian Sozzi commented on Monday that "Based on a walk-through of close to 30 stores in the New York area over the weekend, some of the companies that should be most concerned are" Coach Inc COH, Mattel, Inc. MAT and Abercrombie & Fitch Co. ANF.

"Coach ended Super Saturday weekend the same way it began the shopping season on Black Friday -- by discounting heavily at department stores. The handbag maker is attempting to regain its cool factor with trendier styles from new designer Stuart Vevers, which began to appear in malls last September," according to Sozzi.

Sozzi saw Coach items on sale at 40 percent off at Lord & Taylor, while Macy’s promoted Coach handbags with a “buy one, get one 50 percent off” sale.

Mattel was having a tough time selling Barbie and Ken dolls with discount racks filling up with dolls at Wal-Mart.

Sozzi noted that “worldwide Barbie sales for Mattel declined by 21 percent, 15 percent and 14 percent, respectively, from the third quarter to the first quarter. The problems selling Barbie dolls have weighed on Mattel shares, which have plunged 38 percent this year.”

Abercrombie & Fitch “tried to clear through [all its clothing] on Super Saturday weekend with a 50 percent-off-the-entire-store promotion at both its Abercrombie and Hollister stores. This comes just weeks after the company offered 40 percent off the entire store on Black Friday.”

Sozzi thought the “steep discounts by the company this holiday season could cause the shares to remain under pressure, as investors fear very weak same-store sales, profit margins and guidance.”

Coach closed Monday at $37.00, up 1.40 percent.

Mattel closed at $29.56, up 1.27 percent.

Abercrombie & Fitch Co. closed at $27.49, down 0.29 percent.