Lululemon price target raised to $335 from $250 at Raymond James » 07:0805/2905/29/20
Raymond James analyst…
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Nordstrom says about 40% of store fleet now open » 16:1105/2805/28/20
Nordstrom said: "Applying a phased market-by-market approach, the company began reopening stores in early May with approximately 40 percent of its fleet now open. Nordstrom continues to serve customers online and provides contactless curbside pickup services in most full-line stores. In addition, the company is utilizing fulfillment capabilities at full-line and Nordstrom Rack stores to leverage inventory in its markets and bring greater selection and faster delivery to customers. Nordstrom is focused on protecting the health and safety of employees and customers as well as supporting its communities through efforts including sewing nearly one million masks for healthcare workers and through its 2025 philanthropy goals."
Nordstrom CEO says entering Q2 'in a position of strength' » 16:1005/2805/28/20
"We successfully strengthened our financial flexibility by increasing liquidity, lowering inventory by more than 25 percent from last year and significantly reducing our cash burn by more than 40 percent from March into April. We're entering the second quarter in a position of strength, adding to our confidence that we have sufficient liquidity to successfully execute our strategy in 2020 and over the longer term," said Erik Nordstrom, CEO of Nordstrom, Inc. The company added: "The company entered fiscal 2020 with cash of approximately $850 million and increased its position to approximately $1.4 billion by the end of the first quarter. The company significantly reduced its cash burn and took early actions to increase liquidity. Nordstrom drew down and amended its $800 million revolver; issued $600 million in senior secured notes; and suspended dividends and share repurchases. In addition to its planned expense savings of $200 to $250 million, the company is on track to deliver further cash savings of more than $500 million in operating expenses, capital expenditures and working capital in fiscal 2020. These savings include a reduction in non-occupancy overhead expenses of approximately 20 percent on an annualized basis. The inventory reduction of more than 25 percent from last year resulted from the company's efforts during the quarter to decrease receipts by approximately 30 percent, stimulate demand through increased marketing and promotions and utilize store fulfillment capabilities. This favorable inventory position enables the company to bring in newness for customers beginning in June."
Nordstrom reports Q1 EPS with charges ($3.33), consensus (95c) » 16:0805/2805/28/20
Reports Q1 revenue…
Reports Q1 revenue $2.12B, consensus $2.41B. The company temporarily closed stores on March 17 due to COVID-19, which it said "had a material impact on financial results as stores made up two-thirds of its business in 2019." For the first quarter ended May 2, net sales decreased 40% from last year. Loss per diluted share of ($3.33) included charges of $1.10 associated with the impact of COVID-19, Nordstrom said.
Notable companies reporting after market close » 14:0005/2805/28/20
CRM, COST, VMW, DELL, VEEV, OKTA, ULTA, ZS, WSM, OLLI, DXC, PSTG, JWN
Notable companies reporting after the market close, with earnings consensus, include Salesforce (CRM), consensus 69c... Costco (COST), consensus $2.04... VMware (VMW), consensus $1.20... Dell Technologies (DELL), consensus $1.01... Veeva Systems (VEEV), consensus 58c... Okta (OKTA), consensus (17c)... Ulta Beauty (ULTA), consensus 68c... Zscaler (ZS), consensus 2c... Williams-Sonoma (WSM), consensus (15c)... Ollie's Bargain Outlet (OLLI), consensus 31c... DXC Technology (DXC), consensus 99c... Pure Storage (PSTG), consensus (15c)... Nordstrom (JWN), consensus 95c.
Unusually active option classes on open May 28th » 09:4005/2805/28/20
DLTR, FSM, ALLY, AZN, COTY, DB, M, XLV, XLI
Unusual total active…
Unusual total active option classes on open include: Dollar Tree (DLTR), Fortuna Silver Mines (FSM), Ally Financial (ALLY), AstraZeneca (AZN), Coty (COTY), Deutsche Bank (DB), Macy's (M), Health Care Sector SPDR ETF (XLV), Direxion Daily S&P Bull (SPXL), and Industrial Sector SPDR ETF (XLI).
Ralph Lauren price target raised to $90 from $80 at Needham » 09:3305/2805/28/20
Needham analyst Rick…
Needham analyst Rick Patel raised the firm's price target on Ralph Lauren to $90 from $80 and keeps a Buy rating on the shares after its Q4 results. The company's "robust" balance sheet can handle the impact of COVID-19 pandemic, while its long-term growth drivers should remain intact, the analyst tells investors in a research note. Patel adds that the pronounced expected Q1 weakness related to store closures is now the consensus view, and Ralph Lauren's performance during the upcoming quarter should be partly mitigated by digital growth and a 25% reduction in SG&A spending.
Ralph Lauren price target raised to $89 from $82 at Credit Suisse » 08:3105/2805/28/20
Credit Suisse analyst…
Credit Suisse analyst Michael Binetti raised the firm's price target on Ralph Lauren to $89 from $82 and keeps an Outperform rating on the shares. The analyst believes the company is rigidly holding the line on re-trenching to high levels of markdowns/discounting after years of quality of sales work. The company is also bracing for very low revenues in the near-term to absorb the unit declines and hold the line on prices, he adds. While Binetti thinks it is a "risky strategy with elevated near-term risks," he believes Ralph Lauren's recent years' supply chain and product mix improvements, focus on low discounting, and flexibility from the balance sheet should help minimize the duration of the Corona headwinds to the P&L.
Ralph Lauren price target raised to $77 from $65 at RBC Capital » 07:5805/2805/28/20
RBC Capital analyst Kate…
RBC Capital analyst Kate Fitzsimons raised the firm's price target on Ralph Lauren to $77 from $65 but keeps a Sector Perform rating on the shares. The analyst is "impressed" with the company's AUR, or average unit retail, driven growth, which she expects to continue to lead the way in FY21. Fitzsimons adds however that longer-term concerns about the health of the North American wholesale channel remain, and that she also wonders about "traffic and unit implications" in the "highly promotional" post-COVID environment.
Cowen to hold a virtual summit » 12:2505/2705/27/20
FTCH, REAL, RVLV, COWN
Consumer Platforms for…
Consumer Platforms for the Next Generation Virtual Summit will be held on May 27 at 12:30 pm. Webcast Link