Amid 'Uninspiring Traffic' In Softlines, TJX, L Brands, Express, Ross Are 'Market Share Winners For Holiday'

In a report issued Monday, MKM Partners analyst Roxanne Meyer shared a look into traffic in the softlines retail segment.

Despite the fact that last weekend was the second-to-last ahead of Christmas, the expert classified the traffic as “uninspiring overall, with little buzz in the mall and many stores without lines at checkout.”

However, she highlighted a few brands poised for outperformance this holiday season.

Just a couple of weeks ahead of Christmas, traffic at softlines retailers was quite soft – no pun intended, MKM analyst Roxanne Meyer assured. There were, nonetheless, a couple of notable exceptions where traffic was robust: L Brands Inc LB’s Victoria’s Secret and Bath & Body Works.

Outside malls, the analysts believe off-prices’ shares continue to surge this holiday season, and noted TJX Companies Inc TJX’s “strong presentation of gift-giving and assortment of global brands including a healthy assortment of luxury items.”

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The firm continues to view TJX, L Brands, Express, Inc. EXPR and Ross Stores, Inc. ROST as “market share winners for holiday.”

Holiday Promotions

The report then went on to look at promotions.

These bands saw an uptick in promotions this week when compared to last year:

Urban Outfitters, Inc. URBN’s Anthropologie

Banana Republic

Chico's FAS, Inc. CHS

Gap Inc GPS

Gap’s Old Navy

Victoria’s Secret

On the other hand, the following brands witnessed a downtick in promotions this week versus last year:

Express

White House Black Market

And, with flattish promotional activity:

Bath & Body Works

Urban Outfitters

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.
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