Here Are The Stocks Winning, Losing From Thanksgiving Shopping Weekend

• Shares of Deckers Outdoors Corp DECK and Fitbit Inc FIT are down YTD, while Steven Madden Ltd SHOO shares remained flat and Under Armour Inc UA shares climbed.
• Piper Jaffray’s Erinn E Murphy maintained Overweight ratings on Fitbit and Steven Madden and Neutral ratings on Deckers Outdoors and Under Armour.
• Murphy mentioned that Thanksgiving weekend checks revealed that lifestyle branded companies witnessed solid traffic on Thursday, but traffic was slower on Black Friday.

Analyst Erinn Murphy mentioned that global lifestyle branded companies witnessed solid traffic on Thursday evening of the Thanksgiving weekend. However, on Black Friday, traffic was slower to build, especially in the first six to seven hours of the day.

Traffic was even lower on Saturday and Sunday, Murphy mentioned, adding that these companies witnessed robust online sales. He believes that higher promotional expenditure will restrict the margins of several companies in the upcoming quarter and beyond.

Deckers Outdoor

Murphy maintained a Neutral rating and a price target of $55 on Deckers Outdoor. He mentioned, “In addition to the 20% off all Bailey Button & Bow throughout the weekend (all colors), we saw the UGG Luxe Collection (launched August 2015) go 20% on Sunday.”

The company also marked down other styles as doorbuster promotions. The EPS estimates for 3Q and 4Q have been reduced from $5.00 to $4.90 and from $0.47 to $0.40, respectively.

Steven Madden

The analyst an Overweight rating and a price target of $36 on Steven Madden. He believes the company was more promotional y/y not only on Black Friday but also on the following two days. This is expected to restrict the company’s earnings.

“We are moving to the lower-end of guidance for FY15,” Murphy added.

Under Armour

Piper Jaffray maintained a Neutral rating and a price target of $88 on Under Armour. The analyst believes that the company is one of the most promotional brands across the athletic landscape.

Fitbit

Murphy maintained an Overweight rating on Fitbit, with a price target of $60. He mentioned that the company witnessed strong conversion throughout the Thanksgiving weekend.

During Black Friday, four of the five major SKUs were promoted and market checks suggested that levels sold down well, the analyst added. Flex, the highest margin SKU was fully priced throughout the weekend.

The analyst pointed out that on Sunday all prices were moved back to their full levels. Fitbit was not promoted in London at John Lewis.