Article Excerpt:
TWST: Give us an idea of your coverage and how it relates to the conference.Mr. Van Sinderen: I cover specialty retail and branded footwear and apparel companies for the most part.
TWST: What is the outlook for specialty retail and apparel stocks?
Mr. Van Sinderen: Generally, I think we've seen a fairly strong
consumer. Many of the companies that I follow are in the youth apparel
market, for example, and that demographic tends to be less subject to
what's happening with overall macroeconomic conditions. But in general,
we've seen the retail stocks perform well over the last year in response
to strengthening business trends. Further, it appears that spring is off
to a robust start.
TWST: It has been reported that apparel at department stores has gone
from 75% market share down to 35% over the last few years. Are the
specialty retail companies continuing to eat away at the department
stores' share?
Mr. Van Sinderen: I think that has been an ongoing trend. For a number
of years it has been difficult for the department stores to compete
effectively in apparel. That said, Bloomingdale's, which is part of
Federated Department Stores (FD), has done some successful things in
apparel in recent years. May Department Stores (MAY), however, which is
merging with Federated, has struggled comparatively more in apparel.
Department stores have done relatively better in other categories. But
generally speaking, for the segment of companies that I follow, most of
which are juniors or youth/teen retailers or contemporary, which is
still fairly young, specialty retailers have tended to perform better
than the department stores have in those categories.
Tickers included in this excerpt: AEOS, ANF, ARO, BEBE, BKRS, BWS, CACH, CHIC, FD, GADZQ, KSWS, MAY, OO, PSUN, PXG, SHOO
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