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January 11, 2012 ICR XChange Coverage: lululemon
Now has 350 stores in North America, about one third built out.++++Sold 95% of Q4 at full price in 2011. Expects that to drop as inventory normalizes.++++Five year CAGR of 53.3%, $1,726 per sq. ft. last year and $1,975 for this year.++++E-commerce over 10% and for Q4 slightly over 13%. ICR XChange Coverage: Cabela’s
E-commerce biz is twice the size of next largest competitor.++++Top 50 Facebook like company.++++Cabela’s branded products are $650 million business. Margins are 600-1000 b.p. higher than national brands. Sees it as good defense for Cabela’s to combat direct-to-consumer efforts of brands.
Roughly 50% of business in teen footwear with 39% from Journeys and 12% in Schuh and one third in Lids.++++Q4 comps were done with full price sales. Gross margins will be in same neighborhood as last year. Now lapping 14% and 14% comps for Q1 and Q2 and planning low-single-digit increase against those comps. ICR XChange Coverage: Rocky Brands
Makes about one-third of what it sells in owned factories in Dominican Republic and Puerto Rico.++++Work boots are 67% of business with Western 13%, hunting 16%, 1% military.++++Direct-to-consumer is 19% of sales, 17% independent is to boot retailers, while Western and SG chains are 13% each.
Long-term growth philosophy is to develop sustained growth in all regions. Built strong presence in Middle East. Also growing Russia and Brazil.++++About 10% of growth from unit expansion and 16% is from ASP expansion.
Ugg affordable luxury is 84% of sales with 10% in outdoor Teva, 5% in Sanuk action sports and 1% emerging brands.++++Raises targets for 2015 top line to $2.4 billion, up from $2.0 billion: Ugg will be $1.85 billion vs. $1.65 billion; Teva should be $250 million vs. $200 million; Sanuk expected to hit $200 million and emerging Brands to $100 million from $50 million. ICR XChange Coverage: Shoe Carnival
Athletic footwear is 49% of total with 12% children’s athletic, 20% men’s athletic and 17% women’s athletic.++++Nike is largest brand, followed by Skechers. Of non-athletic, 15% of women’s is in private label, none in men’s. ICR XChange Coverage: Pacific Sunwear
Moved average age of customer up to college age from tween customer before.++++Wants to reduce SKUs in 2012.++++Also diversified sourcing from China to other low-cost countries as well as some domestic factories for fashion business that requires more speed. ICR XChange Coverage: Brown Shoe
Segmented business into Family, Contemporary Fashion and Healthy Living. About 80% of assets work in those trends but the rest do not.++++During Q4, significant increase in promotional activity. Traffic and conversion were down but ASPs were up. Lack of Seasonal Weather Hurts Big 5 in Q4
During the second half of Q4, a lack of winter weather in most of the retailer’s major markets contributed to a sharp fall-off in sales and merchandise margins. Delta Apparel Results Will Be Negatively Impacted by Inventory Writedown
Citing lower sales volumes of branded apparel products, due in part to retail price increases, the Greenville, SC, company is preparing to take a one-time markdown of approximately $16 million worth of basic, undecorated T-shirts in its second quarter. A.T. Cross Sees Double-Digit Growth from Optical Group
The parent of the Costa and Native eyewear brands serving the marine and outdoor markets, is projecting the optical group will generate $106 million in revenues, 59% gross margins and 18% EBITDA in FY14. Dick’s Taps Anomaly as New Ad Agency
The 7-year-old agency has founding partners with past connections to Nike via their work with Weiden & Kennedy. Adam Burns Promoted to COO of Johnny Mac’s Sporting Goods
Burns, the former GM of the family-owned team dealer based in St. Louis, will be responsible for day-to-day operation of retail and warehouse divisions and the enforcement of revised corporate policies for staff in all units. PGA Tour Superstore Expanding to Midwest
The golf specialty chain intends to increase its door count this year to 14 with two store openings in the Chicago metro market. Etcetera: SPRI Products, Asics America
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