Analyst Offers Positive Tidbits For Retailers Following Department Store, Mass, Sporting Goods Earnings

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As earning season comes to an end (with just a small handful of retailers yet to report), Susan Anderson of FBR & Co. offered what she described as "numerous valuable tidbits of information" in department store, mass, and sporting goods retailers over the past week.

Anderson offered the following seven key findings:

  • Back-to-school (BTS) sales picked up in August.
  • Athletic apparel and footwear sales continued to be "dominant" growth drivers.
  • Nordstrom, Inc. JWN showed strength in women's apparel which may bode well for the entire group.
  • The "heightened" promotional environment appears "largely stable" year-over-year.
  • Outdoor growth at Dicks Sporting Goods Inc DKS remains "robust" which may bode well for the entire group.
  • Traffic was "solid" at Wal-Mart Stores, Inc. WMT which bodes well for Hanesbrands Inc. HBI.
  • Wal-Mart's inventory management comments suggests it was responsible for the destocking of Hanesbrands' basics inventory, but committed to keeping products in stock.

Company Specific Commentary

Anderson also offered the following company specific commentary.

  • Carter's, Inc. CRI remained the "dominant" children's clothing provider for the mass/department store retailers.
  • Childrens Place Inc PLCE could be "fairing better" in August from BTS sales.
  • Under Armour Inc UA's commentary was "broadly positive" on athletic apparel while its youth sell-throughs were "solid."
  • Finish Line Inc FINL and Foot Locker, Inc. FL likely benefited from the "strong" momentum in the category based on positive remarks at various retailers.
  • Columbia Sportswear Company COLM could benefit from strong industry tailwinds as retailers (i.e., Dicks Sporting Goods Inc DKS) invest in growing their outdoor business.
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Posted In: Analyst ColorLong IdeasAnalyst RatingsTrading IdeasApparelathletic apparelBack to SchoolFBR & Co.FootwearretailersSusan Anderson
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