In the apparel sector an SG Cowen & Co. report sees Gap Inc.'s same-store sales falling by between 5% and 7%, and Hot Topic dropping between 6% and 8%. The firm predicts big increases from Bebe Stores, from 13% to 15%; Abercrombie & Fitch, from 13% to 15%; and American Eagle Outfitters, at 9% to 11%.
"Deteriorating macro trends are far less likely to impact retailers addressing higher income customers with strong brand recognition than those targeting a lower income customer with weaker brand recognition," Cowen's report says.
In Wachovia Securities' coverage domain, analysts see Pier 1 Imports falling by between 11% and 13% and Hancock Fabrics dropping from 4% to 6%. In the dollar-store sector the company predicts Dollar General to post a flat-to-2% jump and Family Dollar to rise 1% to 2%.
Lehman Brothers analysts say gas prices could hurt apparel but also point to warm weather as a factor, limiting the amount of fall clothing sold. "We expect same-store sales to come in generally below consensus and believe there's some earnings risk for our women's and off-price retailers," the report says.
Overall, Lehman analysts predict that the softlines retailers they cover will post a 0.2% same-store sales drop. That includes a 7% fall for Gap Inc. and a 1.2% dip for Limited Brands. They forecast that strong performers will include Abercrombie & Fitch, gaining 15.8%, and American Eagle, rising 11%.
But the firm has a more favorable outlook on drugstore chains. It expects a 6.3% jump for Walgreens and a 6.5% rise for CVS.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
