News

Fairfax affluence draws new retailers to Tysons

The Washington Examiner (District of Columbia)

- Twice a year Telsey Advisory Group, one of the nation’s most respected retail analysis firms, takes their institutional investor clients shopping. The trips are designed to showcase the hottest retail centers, and best investment opportunities, in the country. This past holiday season, the retail tour included — for the first time — a stop at Tysons Corner Center.

“[We] put that on the map as a new destination for us,” said Vera Van Ert, an analyst with the New York-based firm. “Because of the variety and the number of concept [stores] in there … I think it’s on a lot of people’s radar screens.”

To view the full article, download the PDF here: Washington Examiner, February 1, 2007

Home Depot dives as Lowe's thrives

The Charlotte Observer (North Carolina)

- Home Depot dives as Lowe’s thrives Steady management a key to Mooresville firm’s success Nichole Monroe Bell.

“The issues with Home Depot just got highlighted, and when you look at them under broad daylight, you realize, `Wow, Lowe’s has a pretty tight ship,’ " said Joe Feldman, senior research analyst for New York-based Telsey Advisory Group, which holds no shares with either retailer.

To view the full article, download the PDF here: The Charlotte Observer, January 28, 2007

Williams-Sonoma, Home Depot Reel as Home-Furnishing Cools

Bloomberg (New York)

- Macy’s, the flagship chain of Federated Department Stores Inc., is promoting ``amazing deals’’ and free shipping on bedding and china. Williams-Sonoma Inc.‘s Pottery Barn slashed rattan furniture by 60 percent. Home Depot Inc. has its own ``special values’’ on appliances.

Retailers are diversifying to better weather such slowdowns, Telsey analyst Joseph Feldman said. Home Depot is targeting contractors and builders as customers, in addition to the do-it-yourself market, and expanding overseas.

To view the full article, download the PDF here: Bloomberg, January 26, 2007

Retailer sets sights on Mexico

The Charlotte Observer (North Carolina)

- Mooresville-based Lowe’s Cos. Inc. said Wednesday it plans to expand into Mexico in two years as part of its strategy to expand the company’s international footprint.

“It’s a good move for them because they have a good three to five years of organic growth in the U.S. until they run out of space to put their big boxes,” said Joe Feldman, an analyst for Telsey Advisory Group, which does not own shares of either retailer.

To view the full article, download the PDF here: The Charlotte Observer, January 25, 2007

Gap seeks rescue CEO

The Mercury News (California)

- Gap, the troubled retailer in search of a new chief executive officer, is running on autopilot.

Sell some or all of the company. Vera Van Ert, specialty store analyst with Telsey Advisory Group, said if Gap did that, it should first take the company private, so drastic and expensive changes could be made.

To view the full article, download the PDF here: The Mercury News, January 25, 2007

Coach 2Q Net Up 30.6%, Raises Guidance for 2007

WWD.com (New York)

- Coach Inc., which easily beat Wall Street’s second-quarter expectations, raised its full-year 2007 guidance Tuesday, and indicated that with a $7 billion playground, the company has plenty of opportunities to grow.

James Hurley, luxury analyst at Telsey Advisory Group, said, “What they demonstrated was phenomenal growth in North America, with acceleration in business trends at retail and wholesale. They pointed to a slowing in Japan, but the brand positioning is so strong that Coach is still gaining market share there and is growing its customer base. The company has strength across all channels and is firing on all cylinders. It is a company that is extremely well-managed all year.”

To view the full article, download the PDF here: WWD, January 24, 2007

Son of Gap founder replaces struggling CEO

USA Today (New York)

- Gap and CEO Paul Pressler “mutually agreed” he would resign from the struggling apparel chain Monday and be replaced by a son of the company founder.

“This is not surprising given their results the … past year or so,” says analyst Dana Telsey, who follows Gap.

To view the full article, download the PDF here: USA Today, January 23, 2007

Dana Telsey Presents at the Baltimore Security Analysts Society

(Baltimore, MD)

Dana Telsey, CEO and Chief Research Officer, spoke at the Baltimore Security Analysts Society: Retail Outlook

Rich America, Poor America

Barron’s (New York)

- Twenty-five apartments in Manhattan sold for more than $20 million in 2005, up from five in 2004, with a few fetching $40 million-plus. NetJets couldn’t meet the enormous demand for its private-jet flights over the Thanksgiving holiday. Imports of French cognac into China surged 24% in 2006. And, last May, an unidentified Russian bought Dora Maar with Cat for $95 million, the second-highest price ever for a Picasso.

Because of their exclusivity – real or imputed – and the lack of price sensitivity of their core customers, these brands have enviable pricing power. Says James Hurley, who follows the luxury sector for Telsey Advisory Group in New York: “I expect we’ll continue to hear about sustained momentum” in these businesses. “We have price increases coming our way soon” from European luxe specialists, inspired by strong demand and the greenback’s decline last year versus the euro. That will provide a pricing umbrella for domestic competitors such as Coach and Tiffany, who will “go along for the ride.”

RichTo view the full article, download the PDF here: Barron’s, January 20, 2007

Nardelli era ends at Home Depot

Home Channel News (New York)

- Just two days after ringing in 2007, and a few weeks removed from a vote of confidence in its CEO, Home Depot’s board of directors and its top executive parted ways, marking the end of a profitable but turbulent era at the second largest U.S. retailer.

Joe Feldman, managing director and the senior research analyst at Telsey Advisory Group, said he thinks that Blake will be a good fit, pointing to the fact that Blake is not a novice to Home Depot itself. “He’s been with the company for four years, which is four more years than Nardelli had when he joined the company.”

To view the full article, download the PDF here: Home Channel News, January 15, 2007

Who'd Buy The Gap?

Forbes (New York)

- The 3,050-store chain has hired Goldman Sachs to explore strategic alternatives, including the sale of some or all of its stores. Finding a buyer is gonna be tough —especially at the expected $18 billion-plus asking price.

“Gap and Old Navy have lost their sense of identity,” says retail analyst Dana Telsey with Telsey Advisory Group. Together Gap and Old Navy make 80% of the retailer’s $16.5 billion revenue.

To view the full article, download the PDF here: Forbes, January 10, 2007

Analysts looks to fresh new start for apparel retailers

Associated Press (New York)

- With a disappointing holiday season behind them, the nation’s apparel merchants are regrouping and rethinking their strategies for 2007.

“This is a time for review for a lot of companies,” said Dana Telsey, CEO of Telsey Advisory Group, an independent research firm.

To view the full article, download the PDF here: Associated Press, January 9, 2007

The Big Picture: What It Takes to Grow in 2007

WWD.com (New York)

- Although the business of fashion and retailing is getting tougher and tougher, there is plenty of room to expand and grow a brand, according to a panel of industry experts who shared their outlook for 2007.

“I think consumers are more educated and are more knowledgeable about fashion. They are able to mix and match,” said Telsey. “I think they are more aware of brands. And where they buy their apparel and accessories is also important. But the idea of lifestyle dressing is the consumer’s personality, not the brand’s personality.”

To view the full article, download the PDF here: WWD, January 8, 2007

Home Depot's new CEO has much repair work to do

Reuters (New York)

- Home Depot Inc.’s new chairman and chief executive, Frank Blake, has a ton of repair work to do for shareholders, workers and consumers, experts said this week.

At the stores, which account for 85 percent of Home Depot’s total revenue, employee morale has suffered and investments have not had enough impact on sales, said Joseph Feldman, managing director at independent research firm Telsey Advisory Group.

To view the full article, download the PDF here: Reuters, January 5, 2007

New Home Depot CEO Relatively Short On Retail Experience

Dow Jones Newswires (New York)

- Home Depot Inc.’s (HD) new chairman and chief executive has a formidable resume when it comes to strategy and deal making, but relatively little experience in the retail industry.

“Blake has been at the company for four years, which has given him a solid grounding in the retail side of the business”, said Joe Feldman, an analyst at Telsey Advisory Group in New York.

To view the full article, download the PDF here: Dow Jones Newswires, January 3, 2007

Nardelli out at Home Depot

CNN Money.com (New York)

- No. 1 home improvement retailer gives ex-CEO $210 million package; vice chairman Frank Blake takes the helm.

“The timing of his departure is a big question,” said Joseph Feldman, senior analyst with research firm Telsey Advisory Group. “The company has worded it one way but it’s probably a combination of Nardelli feeling inside pressure and maybe also feeling it was the right time for him to step down after being CEO for six years.”

To view the full article, download the PDF here: CNN Money.com, January 3, 2007

Nardelli quits at Home Depot, Blake named new CEO

The Atlanta Journal-Constitution (Georgia)

- Home Depot Chairman and Chief Executive Bob Nardelli has resigned from the Atlanta-based home improvement retailer, the company said Wednesday.

“A lot of investors have been calling for Nardelli to step down,” said Joe Feldman, managing director at Telsey Advisory Group. "

To view the full article, download the PDF here: "The Atlanta Journal-Constitution, January 3, 2007 ":http://www.telseygroup.com/files/news/AJC-010307.pdf

New Owners of Struggling Eddie Bauer Face Challenges: Can retail PE pros breathe new life into a quality but languishing brand?

Mergers & Acquisitions (New York)

- Despite being savvy investors in the retail and consumer products sectors, Sun Capital Partners and Golden Gate Capital have their work cut out for them in revitalizing troubled Eddie Bauer Holdings.

A big challenge for the new owners centers on re-energizing the brand, since it withered under the ownership of Spiegel, notes Vera Van Ert, a Director covering the specialty stores sector at Telsey Advisory Group, a retail-industry research firm based in New York.

To view the full article, download the PDF here: Mergers & Acquisitions, January 2007

Final week before Christmas was on low side of expectations

The Dallas Morning News (Texas)

- The holiday retail season appears to be a mixed bag for major chain stores.

“We’re not sure why there’s so much doom and gloom,” said Joseph Feldman, a managing director at Telsey Advisory Group. “The season’s gains were expected to be weaker than last year, and there’s still a big week to add into the month.”

To view the full article, download the PDF here: The Dallas Morning News, December 28, 2006

Stores cut prices to meet holiday sales goals

CNN Money.com (New York)

- Robust sales over Christmas weekend were too little too late; total holiday sales gains fell short versus last year.

Joseph Feldman, research analyst with Telsey Advisory Group, said he anticipates the first-half of 2007 to be “challenging” for retailers.

To view the full article, download the PDF here: CNN Money, December 26, 2006

THE SANTA PAUSE: H’Day Weekend Shoppers Waiting Til Last Minute

The New York Post (New York)

- While shoppers have become ever more adept at waiting until the last minute to nab the best holiday bargains, this year promises to be more of a nail-biter than usual, analysts and industry executives said.

“A lot of what happens in mid-December is misleading,” said retail analyst Dana Telsey of the Telsey Advisory Group. “It’s the last 10 days that are key, and this year even more so, given that Christmas falls on a Monday.”

To view the full article, download the PDF here: The New York Post, December 23, 2006

Weekend is the final call for last-minute shoppers 'Full Saturday and Sunday before Christmas' has retailers looking toward strong finish

The Dallas Morning News (Texas)

- Today is expected to be the biggest shopping day of the season, with spenders well outnumbering browsers on the final weekend before Christmas.

“It’s the perfect storm, in a good way – a full Saturday and Sunday before Christmas,” said Vera Van Ert, analyst with retail research firm Telsey Advisory Group. “Overall, it’s been a good season.”

To view the full article, download the PDF here: The Dallas Morning News, December 23, 2006

Sink or Swim

dailyii (New York)

- Maybe you can have too much of a good thing. In 2003, as part of the $1.4 billion global settlement designed to address Wall Street’s conflict-of-interest ills, the Securities and Exchange Commission ordered big investment banks to allocate hundreds of millions of dollars to independent research.

Telsey acknowledges there have been a lot of new entrants into the independent research industry, growth she attributes to “increasing market demand for research without the layers of bureaucracy you’ll find at large brokers.”

To view the full article, download the PDF here: dailyii, December 18, 2006

Style & Substance: Outshouted by Prada and Gucci, Goyard Quietly Attracts the People Who Count

The Wall Street Journal (New York)

- IN THE WORLD of fashionable accessories and luggage, where the recognizable brands of Louis Vuitton, Gucci and Prada scream luxury, Goyard only whispers the word — but it whispers into the ears that count.

Goyard’s approach “increases the allure of the product among the most sophisticated customers because it maintains its insider status,” says James Hurley, the managing director of luxury consultancy Telsey Advisory Group in New York.

To view the full article, download the PDF here: The Wall Street Journal, December 21, 2006

Hey big spender, want to live life in the luxe lane? Give these over-the-top gifts a spin

The Atlanta Journal-Constitution (Georgia)

- In less than eight minutes, Saks Fifth Avenue sold all 20 special-edition 2007 Mercedes-Benz CL600s in its gift catalog for a cool $160,000 each. Neiman Marcus’ 50 limited-edition BMW M6 convertibles sold out in just 92 seconds. The $139,000 price included a four-day trip to the company’s factory in Munich.

Such pricey indulgences are fueling a $150 billion global luxury market, one that’s growing at 8 percent annually, said Jim Hurley, a senior research anaylst for Telsey Advisory Group in New York. The United States accounts for about 25 percent of those sales.

To view the full article, download the PDF here: The Atlanta Journal-Constitution, December 21, 2006