fbpx
QQQ
+ 4.33
336.68
+ 1.27%
DIA
-2.13
342.89
-0.63%
SPY
-0.15
422.26
-0.04%
TLT
+ 2.11
138.82
+ 1.5%
GLD
-5.16
176.27
-3.02%

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

by
November 27, 2017 10:42 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

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.

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

Why This Amazon Analyst Sees 'Enormous Amount Of Upside' Ahead

An "enormous amount of upside" exists for Amazon.com, Inc. (NASDAQ: AMZN), Evercore ISI analyst Mark Mahaney told CNBC Friday. The stock has been rangebound for the last six to nine months, the analyst said on CNBC's "Squawk Box." read more

Why 4 Analysts Like Walmart's Stock After Pullback

Retail giant Walmart Inc (NYSE: WMT) reported Thursday with fourth-quarter results that sent the stock down 6% on the day amid minimal EPS growth and elevated near-term investments. read more

KeyBanc Initiates Coverage On Cloudflare Amid New Products

Although shares of Cloudflare Inc (NYSE: NET) have appreciated by around 300% year to date, the stock may be interesting for high-growth software investors, according to KeyBanc Capital Markets. read more

Black Friday Shopping Is A Little Different This Year: Could It Stay This Way Forever?

The concept of Black Friday sales has been replaced with a holiday shopping season that started in October, according to SW Retail Advisors Stacey Widlitz. read more