4 Takeaways From Citi's Back-To-School Shoe Survey
Citi’s 2016 Back-to-School Footwear Survey indicated the Athletic Specialty category outperforming the broader industry trends, analyst Kate McShane said in a report. She added that the survey results suggested a “slightly stronger BTS season y/y.”
4 Drivers Of BTS Season
The survey included 79 U.S. footwear retailers and focused on this year's back-to-school selling season.
McShane mentioned that the survey indicated the BTS season would likely be slightly stronger year-over-year, driven by:
- Multiple brand platforms working, including Nike Inc (NYSE: NKE) basketball & lifestyle, Adidas (OTC: ADDYY), Puma, and Vans
- Multiple categories working, with growth in running, basketball, and casual athletic
- Footwear traffic outpacing broader U.S. mall trends, possibly driven by excitement around the Olympics
- A more positive view of customer spending, with a majority citing a y/y increase in spend
"Footwear promotions appeared roughly flat (58% of retailers) to higher y/y (34%), consistent with the broader inventory pressures," the analyst wrote.
She added that Foot Locker, Inc. (NYSE: FL) remained Citi’s top-pick in the footwear retail space, since the company seemed well positioned to “continue getting the top allocation of premium branded product & managing well through industry headwinds, with clean inventories & branded shop-in-shops.”
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Latest Ratings for FL
|Nov 2016||Wedbush||Initiates Coverage On||Outperform|
|Sep 2016||Guggenheim||Initiates Coverage on||Neutral|
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