Shopkeepers' Nation

Retail Stocks Rise as VF Beats Estimates

According to MarketWatch, retail stocks rose today as companies reported better than expected earnings.  Most notably, VF Corp, which owns 7 For All Mankind, Lucy, Splendid, and Ella Moss, among others, "jumped after its second-quarter profit decline was smaller than expected and it signaled an improved second-half outlook."  Chief executive Eric Wiseman said, "while business remains tough and profit was hurt by a stronger dollar and pension costs, [VF's] largest brands continued to gain market share," a positive sign that has people looking ahead to an economic rebound.

In other news, VF also came in first in the apparel category for Brandweek's Superbrands 2009 rankings.

VF Corp Beating the S&P 500

Bucking the trend of the current retail slump, the stock of VF Corp, the owner of brands such as Splendid, Ella Moss, 7 For All Mankind, and Lucy, is outperforming the S&P 500 year to date.  The company is currently up 8% versus the S&P 500's 4% gain, despite currency headwinds (with 33% of its revenue to tied to international markets, a strong dollar can be hard on its sales numbers), and a high dividend yield.

Break a Sweat in Lucy This Summer

Lucy has released two new collections for summer, Lucy Beach and the Swift Run collection.  The bold colors and high-tech fabrics embrace the spirit of summer and are designed to inspire women to get outdoors.

VF Corp Bucking Recession, Wall Street Journal Reports

VF Corp, the owner of 7 For All Mankind, Lucy, Splendid, and Ella Moss, among others, is bucking the recent trend among US apparel makers of holding back on spending and expansions, according to the Wall Street Journal.  The largest apparel maker in the world by revenue, VF plans to go forward with a five-year plan that began in 2007 to reduce its reliance on department stores and open more of its own outlets.  In 2008, VF drew 16% of its revenue from its own stores, and hopes to push that number up to 22% by 2012.  The company's strong balance sheet allows it to take advantage of deals on store leases and puts it in a good position to snap up new brands to gain market share from its competitors

Lucy Introduces the Harmony Collection

Lucy has just released the Harmony Collection, a yoga line with flattering styles made from their newest technical fabric, Cool Cotton.  Recognizing a strong demand for yoga apparel made with natural materials, Lucy developed a soft, breathable cotton that wicks moisture and provides compression.  “Yoginis no longer have to choose between natural and performance fabrics. With Cool Cotton, technology harmonizes with a natural cotton to keep yoga practitioners cool, dry and covered,” said Kira Karmazin, Vice President of Merchandising & Marketing for Lucy activewear.

Amid Market Declines, VF Shares Rise

VF Corp, the parent company behind 7 For All Mankind and Lucy, and a partial investor in Splendid/Ella Moss, was one of the few gainers yesterday even as the company cut its fourth quarter guidance due to the weak sales that are affecting the entire retail industry.  Raising confidence on the part of analysts was their announcement of a cost-cutting plan, a strong outlook for 2009, and a solid balance sheet.  "VF is well-positioned to weather this difficult environment due to our strong brands and our long history of disciplined financial and balance sheet management," said Eric Wiseman, Chairman and Chief Executive Officer.

Lucy Launches Power Gym Collection

Launching just in time for New Year's, Lucy's new Power Gym Collection is not just about getting back to the gym, but bringing a fashion-forward aesthetic to performance wear.  Featuring lucypower(TM), an exclusive moisture-wicking fabrication developed by Lucy to offer powerful compression and smooth supportive stretch, new designs include the low-rise, ultra-sleek Lucy Power Cardio Pant as well as tanks that feature a "brocket" - a bra pocket that can be used to stash keys, money or even an iPod mini while working out.

Mad Money Sides with VF Corp.

 

Jim Cramer calls VF Corp. a buy in this clip from last week's episode of CNBC's Mad Money, naming it "retail's real winner this season."  While department stores are slashing prices to bring in customers, vertically integrated suppliers like VFC make their money regardless, Cramer notes.  At the same time, it uses its tried and true brands like Lee and Wrangler to fund growth in younger brands like The North Face, 7 For All Mankind, Lucy, Splendid, and Ella Moss.

Lucy Goes Prime

 

Lucy opened their first outlet store at the Prime Outlets in Williamsburg, Virginia last week, just in time for holiday shopping.  For West Coast shoppers who are looking for deals on Lucy gear, their second outlet will be opening in Woodburn, Oregon in 2009.

VF Announces Record Third Quarter

VF Corp posted strong third quarter revenues of $2.2 billion, up 6% over last year even in the face of deteriorating market conditions.  Income, gross margins, and earnings per share are all up as well.  To adjust for the current financial crisis and its impact on consumers across the globe, VF reduced its fourth quarter guidance but are still anticipating a 3 to 4% rise in revenues to deliver a sixth consecutive year of record growth.  Analysts have a positive outlook as well - according to Forbes, Citi Investment Research analyst Kate McShane kept her only "Buy" rating on VF Corp while lowering estimates across the apparel maker sector.  The Contemporary Brands Coalition, which includes 7 For All Mankind and Lucy, saw 12% growth over last year, and is projected to have revenues of $400 million at year's end.