News

How Nimbleness Is Paying Off for Mass Retailer TJX

Investors.com

- Lord & Taylor and Saks Fifth Avenue aim for high-end, affluent consumers. Wal-Mart (WMT) zeros in on bargain hunters.

Industry analyst Dana Telsey, who runs her own research firm, says everyone at TJX stores, including managers and staff, are trained to track consumer sales trends. "The success of TJX is due to its people and their firsthand knowledge and insight into their customer," Telsey said. For example, in 2001 it widened its assortment of designer goods and junior wear as consumer demand morphed.

To view the full article, download the PDF here: Investors.com, January 13, 2012

Taco Bell Sees Market Share Recouped With Chipotle Menu: Retail

Bloomberg (New York)

- For Yum! Brands Inc. (YUM)’s Taco Bell, thinking outside the bun means going gourmet.

During the past decade, the brand has positioned itself as an affordable option for the young guy who “loves the lower price points,” said Peter Saleh, a restaurant analyst at Telsey Advisory Group in New York. Taco Bell has touted value meals with its “Why Pay More!” slogan and recently advertised a 12- pack of crunchy tacos for $10.

To view the full article, download the PDF here: Bloomberg, January 11, 2012

LinkedIn Stakeholders Stand Pat With Bad Math

Barron’s – Tech Trader Daily

- Beware the headline that says a large hedge fund or institutional investor whittled its stake in LinkedIn. It probably did nothing of the sort.

Telsey Advisory Group was a little more cautious in issuing a price target of $74 to $76 in late December. Analysts there expressed concern about how LinkedIn will make money on its participants.

To view the full article, download the PDF here: Barron’s, January 10, 2012

A Casino at Coney Island? Brooklyn's Boro President Is All for It

AM New York (New York)

- Brooklyn's biggest booster envisions Coney Island as a gamblers' paradise, but constructing a glitzy gaming palace in the seaside resort won't be an easy bet, observers said.

Gaming analyst Christopher Jones, of Telsey Advisory Group, said New York would benefit from a gaming boom to the detriment of surrounding states that already having full gambling. And whether or not a Brooklyn casino is in the cards, talk to build one could continue.

To view the full article, download the PDF here: AM New York, January 10, 2012

What analysts are saying: Best Buy a good buy?

StarTribune

- Best Buy's slumping stock price is attracting the interest of private equity buyers, according to a recent Bloomberg News story.

"Now would be the time, if I were private equity, to be dusting this off," Telsey Advisory Group analyst Joe Feldman told Bloomberg. "They generate a ton of free cash. From a valuation standpoint it does look like an attractive candidate for a takeout."

To view the full article, download the PDF here: StarTribune, January 7, 2012

What’s the Retail Outlook for 2012

Business News Network (Canada)

- Joe Feldman, Senior Research Analyst, Telsey Advisory Group, rounds up the holiday season spending parade and looks ahead to 2012.

To view the video, please click on the following link: Business News Network, January 6, 2012

BBY Potential Takeover Target?

CNBC.com (New York)

- Best Buy shares were down more than 34% last year, but could their rich cash flow make them an attractive takeover target for private equity? Dana Telsey, Telsey Advisors, discusses.

To view the video, please click on the following link: CNBC.com, January 5, 2012

Private Equity Value for Best Buy (BBY, GME, WMT, AMZN)

24/7 Wall Street (New York)

- After losing about a third of its value in the last year, Best Buy Co. (NYSE: BBY) may start to be thrown around as a private equity takeover name. A report from Bloomberg calls Best Buy a private equity target in the making and said it is “a retailer that throws off the most cash, there’s no bigger bargain than Best Buy.”

Bloomberg went on to note, “Best Buy can still enrich leveraged buyout firms after generating $2.44 billion in free cash in the past year, Telsey Advisory Group and Morningstar Inc. said. The $8.14 billion company could get at least $37 a share in a takeover, according to Thornburg Investment Management, 59 percent more than its price yesterday.”

To view the full article, download the PDF here: 24/7 Wall Street, January 5, 2012

Best Buy Looking Like a Good Buy

Wall Street Cheat Sheet (New York)

- For private equity buyers shopping for a retailer that has the most cash, there’s no better deal than Best Buy Co. (NYSE:BBY). The company is valued at 3.6 times its free cash flow subsequent to losing nearly a third of its market value in 2011. Best Buy was one of the worst performing retail stocks in the Standard & Poor’s 500 Index last year, but at the same time also reached its lowest valuation relative to earnings.

Telsey Advisory Group and Morningstar Inc. says the company could get at least $37 a share in an acquisition. “Now would be the time, if I were private equity, to be dusting this off,” Joe Feldman, analyst at Telsey, said. “They generate a ton of free cash. From a valuation standpoint, it does look like an attractive candidate for a takeout.”

To view the full article, download the PDF here: Wall Street Cheat Sheet, January 5, 2012

Best Buy Gaining 59% as Cash-Rich Retailer Invites LBO: Real M&A

Bloomberg Businessweek (New York)

- For private equity buyers looking for a retailer that throws off the most cash, there’s no bigger bargain than Best Buy Co.

“Now would be the time, if I were private equity, to be dusting this off,” Joe Feldman, a New York-based analyst at Telsey, said in a telephone interview. “They generate a ton of free cash. From a valuation standpoint, it does look like an attractive candidate for a takeout.”

To view the full article, download the PDF here: Bloomberg Businessweek, January 5, 2012

Lowe’s buys ATG to expand online footprint

MarketWatch (New York)

- Lowe’s Cos. said Thursday it bought online home-improvement retailer ATG Stores for an undisclosed amount to expand its product offerings and better its Internet business.

Online sales represent about mid-single-digit percent of its total business, said analyst Joe Feldman of Telsey Advisory Group.

To view the full article, download the PDF here: MarketWatch, December 29, 2011

Sears to Close 100 to 120 Kmart, Sears Stores

WNYC News (New York)

- Sears Holdings Corp. plans to close between 100 and 120 Sears and Kmart stores after poor sales during the holidays, the most crucial time of year for retailers.

Joe Feldman, senior retail analyst at the Telsey Advisory Group, says it’s not a "beginning of the end" situation. "I don't think that they're in jeopardy of getting close to a bankruptcy, or going out of business anytime soon. I do think that there's, you know, an opportunity to right-size the store base and that should help," he said."

To view the full article, download the PDF here: WNYC News, December 27, 2011

Holiday Sales: Winners & Losers

CNBC.com (New York)

- After just completing a 10-city shopping tour, Dana Telsey, Telsey Advisory Group CEO discusses those company that ranked among some of the biggest winners and losers this holiday season.

To view the video, please click on the following link: CNBC.com, December 27, 2011

Will Wacky Weather Impact Retail Sales?

CNBC.com (New York)

- Retail sales are up this holiday season but will unusual weather impact consumer shopping? Joe Feldman, Telsey Advisory Group, weighs in. Also, the play on bonds, with the Fast Money traders.

To view the video, please click on the following link: CNBC.com, December 22, 2011

Downtown Milwaukee's Boston Store to stay open

Journal Sentinel

- Downtown Milwaukee's Boston Store will remain open for at least one more year.

Bon-Ton operates 276 stores under several names, including Boston Store, Carson Pirie Scott, Elder-Beerman, Younkers and Herberger's. Only about 10 to 12 stores are in downtown locations, said industry analyst Kristina Westura, of New York-based Telsey Advisory Group LLC.

To view the full article, download the PDF here: Journal Sentinel, December 22, 2011

Toy story: Wal-Mart, Target fight for parents' dollars with deep discounts

MSNBC (New York)

- Selling toys during the holidays is hardly child's play; it's a bare-knuckle brawl between big-box behemoths.

“Wal-Mart's heavily touted layaway plan, which it started advertising even before Black Friday, gave it an early edge in the category, thanks to shoppers who can't or won't put their holiday purchases on credit cards. "It was one of those categories Wal-Mart had talked about not being beaten in," said Joseph Feldman, senior retail analyst at Telsey Advisory Group.

To view the full article, download the PDF here: MSNBC, December 21, 2011

Tamer Bebe Finding Its Stride

MSNBC (New York)

- Selling toys during the holidays is hardly child's play; it's a bare-knuckle brawl between big-box behemoths.

“Wal-Mart's heavily touted layaway plan, which it started advertising even before Black Friday, gave it an early edge in the category, thanks to shoppers who can't or won't put their holiday purchases on credit cards. "It was one of those categories Wal-Mart had talked about not being beaten in," said Joseph Feldman, senior retail analyst at Telsey Advisory Group.

To view the full article, download the PDF here: MSNBC, December 21, 2011

Downtown Boston Store bucks nationwide trend -- Few department stores survive in middle of midsize cities

Journal Sentinel

- In a world where Kohl's, Target and other lower-cost retail chains have lured away shoppers from traditional, full-service department stores, downtown Milwaukee's Boston Store is part of a vanishing breed.

Bon-Ton operates 276 stores under several names, including Boston Store, Elder-Beerman, Younkers and Herberger's. Only about 10 to 12 stores are in downtown locations, said industry analyst Kristina Westura, of New York-based Telsey Advisory Group LLC.

To view the full article, download the PDF here: Journal Sentinel, December 18, 2011

Super Saturday: Retailers Slash Prices a Week Early

ABC News

- Retailers rolled out their best deals Saturday, a week earlier than tradition dictates, in the hopes that shoppers would flock to their stores to take advantage of deep discounts on popular items such as toys, jewelry and clothing.

“Next Saturday people will be traveling to go home with their families,” Dana Telsey, CEO at Telsey Advisory Group, a consumer-focused brokerage firm, told ABC News. “Also, next Saturday a lot of the good deals that you had—it’ll still be there but the quantities of merchandise may not be left.”

To view the full article, download the PDF here: ABC News, December 18, 2011

Michael Kors: Wall Street’s Newest Player

WWD (New York)

- “I’m feeling great,” said an exuberant, and newly flush Michael Kors, after ringing the opening bell of the New York Stock Exchange Thursday morning.

Dana Telsey, ceo and chief research officer of Telsey Advisory Group, said, “We haven’t had an IPO in a while with this momentum,” citing the company’s store, geographic and product growth. “To hear the number of same-store gains is an encouraging sign,” she said. She expressed confidence that the momentum should continue. “It’s still early on in their stage of growth and there’s more ahead of it,” said Telsey.

To view the full article, download the PDF here: WWD, December 16, 2011

Big Prices, Big Demand at Jewelry's High End

WWD (New York)

- Fine jewelry continues to boom this holiday season, with demand heaviest for pieces in rich, saturated hues - think sapphires, emeralds and garnets, as well as classic gold, diamonds and high-end statement pieces.

“Overall, the market has really sustained momentum so far in the third quarter, even into October and November. This time last year, we saw a pretty strong third quarter, but we’ve seen even more robust growth this year. There is no price resistance,” luxury retail analyst David Wu of the Telsey Advisory Group said, despite findings from a survey he conducted in September that comparatively analyzed fine jewelry and watch prices from March 2010 to September 2011.

To view the full article, download the PDF here: WWD, December 12, 2011

McDonald’s November Store Sales Rise 7.4%

Bloomberg (New York)

- McDonald’s Corp. (MCD), the world’s largest restaurant chain, said sales at stores open at least 13 months rose 7.4 percent globally last month, driven by demand in Japan and China.

“China is big enough and there’s enough runway for growth for both” McDonald’s and Yum, Peter Saleh, an analyst at Telsey Advisory Group in New York, said today in an interview. Right now, McDonald’s is focused on opening free-standing locations with drive-throughs while Yum is in more strip malls, he said.

To view the full article, download the PDF here: Bloomberg, December 8, 2011

Consumers No Scrooge With Seasonal Decor

Bloomberg (New York)

- Peggy Curtis spent Thanksgiving week out of work, the first layoff in her 37 years making cigarettes in a Reidsville, North Carolina, factory. Instead of moping, she went shopping for holiday decorations at Home Depot Inc. (HD)

Pushing trees, ornaments and lights will help fourth- quarter sales at Home Depot and Lowe’s, Joe Feldman, an analyst at Telsey Advisory Group in New York, said yesterday. Typically the last quarter of the year is the slowest for the home- improvement chains, generating about 22 percent of revenue.

To view the full article, download the PDF here: Bloomberg, December 6, 2011

Darden Falls After Cutting 2012 Forecasts

Bloomberg (New York)

- Darden Restaurants Inc. (DRI) plunged the most in almost three years after saying sales and profit this year will grow more slowly than previously forecast as the restaurant operator works to revive its Olive Garden chain.

“The traffic in casual dining is still pretty weak,” said Peter Saleh, an analyst at Telsey Advisory Group in New York. Olive Garden “needs to come out with a good value offering and they have to promote it,” he said in an interview.

To view the full article, download the PDF here: Bloomberg, December 6, 2011

Bensalem‐based owner plans to sell Fashion Bug

Philly.com

- The Bensalem-based company that owns Fashion Bug said Thursday that it planned to sell or eliminate thestruggling retail chain while focusing efforts to grow its more profitable plus-size Lane Bryant apparel brand.

Analyst Janine Stichter of Telsey Advisory Group L.L.C. said it was unlikely Fashion Bug's 664 leased stores would change hands or close in the very near future. "I wouldn't expect anything in the next few months," Stichter said. "But, hopefully, within a year we'll know the fate of Fashion Bug."

To view the full article, download the PDF here: Philly.com, December 2, 2011