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.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.