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Retail Rundown: Coach-Kate Spade Deal, A&F Buyout, Q1 Earnings, Expansion?

Published 05/16/2017, 12:51 AM
Updated 07/09/2023, 06:31 AM

  • (0:20) - Coach Acquires Kate Spade
  • (2:20) - A&F Buyout Rumors
  • (4:40) - Macy's Q1 Earnings
  • (6:30) - Retailers Expanding?
  • (8:30) - Episode Roundup: Podcast@Zacks.com

On today’s episode of Shopping for Stocks, Editor Maddy Johnson covers a busy past week or so in the retail industry, giving listeners a rundown of the biggest stories as Q1 earnings season winds down.

One of the biggest stories to rock the industry was arguably Coach’s (NYSE:COH) announcement that it is buying rival Kate Spade (NYSE:KATE) in a deal worth $2.4 billion. Coach is an iconic American luxury retailer, and scooping up a fun, flirty, and younger brand like Kate should help the company during a time when it’s trying to transform itself and its image.

Find out more here: After Months of Rumors, Coach is Buying Kate Spade for $2.4 Billion

Abercrombie & Fitch (NYSE:ANF) is also reportedly looking for a buyout offer. Last week, Reuters reported that the struggling mall retailer hired an investment bank to field potential takeover interest, though there is no certainty any deal will occur.

Read more here: Shares of Abercrombie & Fitch Pop on Takeover Interest

Switching gears, Macy’s (NYSE:M) reported dismal first quarter results last Thursday, and the entire retail industry seemingly faced a massive sell-off as a result. Everyone from JCPenney (NYSE:JCP) and Sears (NASDAQ:SHLD) to Ralph Lauren (NYSE:RL) and Gap (NYSE:GPS) were down that day.

Check out the madness here: As Macy’s Stumbles After Earnings, It’s Bringing Other Retailers Down With It

But not every retailer is struggling. Home Depot (NYSE:HD) just reported a killer first-quarter earnings report, beating both top and bottom line estimates, and some companies are even expanding their store count, not shrinking it, reflecting certain aspects of the retail industry that are thriving.

Check it out here: What Retail Apocalypse? These Stores are Expanding, Not Closing

As a reminder, if you feel that something was missed, or if you want a different topic covered, send an email to podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcast, and remember to subscribe and leave a rating on iTunes.

Thanks for listening to this week’s episode of Shopping for Stocks!

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Home Depot, Inc. (The) (HD): Free Stock Analysis Report

Abercrombie & Fitch Company (ANF): Free Stock Analysis Report

Gap, Inc. (The) (GPS): Free Stock Analysis Report

Kate Spade & Company (KATE): Free Stock Analysis Report

Macy's Inc (M): Free Stock Analysis Report

J.C. Penney Company, Inc. Holding Company (JCP): Free Stock Analysis Report

Coach, Inc. (COH): Free Stock Analysis Report

Ralph Lauren Corporation (RL): Free Stock Analysis Report

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