Black Friday 2017: Here Are The Retailers Who Showed Holiday Promise

Black Friday appears to have been a successful selling event for retailers, as traffic levels remained solid while ShopperTrak reported a less than 1 percent decrease in foot traffic in stores.

The Analyst

KeyBanc Capital Markets' Bradley Thomas, Jason Gere, Brett Andress, Edward Yruma and others.

The Thesis

Online commerce remains a "key avenue for growth" for retailers but foot traffic levels were "broadly solid" across multiple store check throughout Black Friday. Here is a summary of how some of the most notable physical and digital retailers performed during the selling event.

Hardlines

• Bed Bath & Beyond Inc. (NASDAQ:BBBY) was slightly more aggressive in promotions but overall "uninspiring" with undifferentiated promotions versus its peers.
• Best Buy Co Inc (NYSE:BBY) gained market share and saw healthy traffic. The company's credit turnaround is also gaining momentum.
• Conn's Inc (NASDAQ:CONN) likely benefited from the impact of Hurricane Harvey in impacted markets which represents around 20 percent of total sales.

Toys

• Mattel, Inc. (NASDAQ:MAT) and Hasbro, Inc. (NASDAQ:HAS): overall both companies performed "OK" but it's too early to draw conclusions. However, smaller and mostly private toy companies likely overshadowed Mattel and Hasbro throughout the weekend.

Relatad Link: With Consumer Confidence Up, Retailers Hope For Blissful Holidays

Softlines and eCommerce

• Amazon.com, Inc. (NASDAQ:AMZN) continued to focus on fashion and devices, including $20 to $50 off Amazon devices and 30 to 50 percent off Prime-exclusive deals on clothing.
• Gap Inc (NYSE:GPS)'s Black Friday promotions were similar to last year (50 percent off the entire store) but was increased slightly to an extra 10 percent off online purchases ahead of Cyber Monday.
• Wal-Mart Stores Inc (NYSE:WMT) offered the same promotion as last year where deals across many product categories were available online at 12:01 a.m. Thanksgiving morning and in stores as of 6:00 p.m.
• G-III Apparel Group, Ltd. (NASDAQ:GIII) benefited from strong sales of cold weather goods and the company could have been an outsized winner.

Household and Personal Care

• Ulta Beauty Inc (NASDAQ:ULTA) saw "good" store traffic on Thanksgiving evening and Black Friday with lots of new membership signups for its loyalty program.
• Estee Lauder Companies Inc (NYSE:EL): Specialty beauty companies offered lots of compelling gift sets and saw busy foot traffic.
• Newell Brands Inc (NYSE:NWL) was incrementally promotional which could boost sales but at the expense of margins.
• Helen of Troy Limited (NASDAQ:HELE) heavily promoted its water bottles which could similarly weigh on margins.