WILL VERSACE DISTRACT MICHAEL KORS?
Analysts are still skeptical of Michael Kor's potential after the acquisition of Versace. While the company boasted healthy earnings in the second quarter, the victory had more to do with tax cuts than brand performance.
That foreshadows a murky outcome on Michael Kors' ability to successfully rehabilitate Versace. "We believe management is losing control of the Michael Kors model as it seeks to distract attention through additional acquisitions, " says William Blair analyst Dylan Carden.
Will Kors be able to find its course and uphold a similar pricing transition as Coach, who switched from over-exposure and price pressures, to a luxury position to capture attention and dollars?
PARTY, PARTY, PARTY!
If the quick checkout incentives weren't enough, Walmart will lure shoppers to its locations during Thanksgiving with an earlier opening time and parties to kick off Black Friday. While shoppers can enjoy online deals starting 10 p.m. ET on Nov. 21, they'll miss out on the in-store festivities!
On the surface, the retail apocalypse has slowed down, preying only on the weakest. Still, downsizing and store closings plague the industry. With Sears Holdings and Mattress Firm filing Chapter 11 this fall, here's a look at other retailers that may be facing bankruptcy after debt issues, cash and competitive incompetencies, and overall vulnerability.
CONSUMER CONFIDENCE COULD CAUSE AMAZON'S TO WAIVER
Amazon may be efficient, but it isn't necessarily fun.
Amid record low unemployment rates, shoppers want the good ol' fashion in-store experience. High consumer confidence could lead those shoppers from behind their computers and into brick-and-mortar locations this holiday season.
That could potentially put a dent in Amazon's fourth-quarter sales, despite its e-commerce dominance. Nevertheless, traditional retailers continue to increase their online presence to compete using "free shipping" offers to secure shoppers' attention and dollars.
Indie lingerie brand, Lively, has debuted "leisurée," and is giving Victoria's Secret a run for its money. The brand combines lingerie and activewear for women of all sizes, and has seen growth of 300% since its launch. Lively focuses on female empowerment, using comfortability as a selling point for its lingerie and leisure juxtaposition. Seventy percent of their pieces are wire-free, and sizes range from 32A to 40DD, with more sizes to come.
THIS WEEK'S BRIGHT SPOT
Holiday sales are predicted to reach an all-time high since the Great Recession, according to a new report by B. Riley FBR. Analysts foresee same-store sales rising 2.2% this holiday season and anticipate an increase in gross margin of 45 basis points on average. Giving retailers a holiday boost are industry consolidation, lower rents, investment in omnichannel technology, and a stronger fashion cycle.