News Releases

BMO Capital Markets Consumer Research Analysts:

Wayne Hood, Senior Research Analyst, Broadline Retail, BMO Capital Markets (covering: KSS, M, TGT, WMT, and more). Wayne Hood comments, “Retail sales continue to show sequential improvement against last year's easy sales comparisons; this should continue into the all-important Holiday Season. … We look for on-line sales to significantly outpace overall sales, as well as, “aggressive door-buster and two-for-one promotions” around key items over Black Friday. In apparel and dry grocery, sales of private/exclusive label merchandise are likely to continue to see stronger results than branded merchandise as consumers continue to gravitate to value.”

Gerrick Johnson, Senior Research Analyst, Toys, BMO Capital Markets (covering: HAS, JAKK, MAT and more). Gerrick Johnson notes ”Retailers have been managing inventory tightly. Meanwhile, consumers have begun their holiday shopping, but appear to be sticking to the promotions and advertised items.”

Connie Maneaty, Senior Research Analyst, Personal Care and Household Products, BMO Capital Markets (covering: AVP, EL, REV, and more). Connie Maneaty comments, “Consumer packaged goods companies have managed costs tightly all year, with most of the recent earnings upside deriving more from financial discipline than from sales growth. Their approach to the holiday season is cautious, but we think the purse strings are loosening. Advertising (and promotion) may have an impact on holiday shopping, but importantly, set the stage for a more sustained, if gradual recovery in 2010.”

John D. Morris, Senior Research Analyst, Apparel Retail, BMO Capital Markets (covering: ANF, ARO, GPS, JCG, and more). John Morris states “Retailers are reaching for the promotional lever a little earlier this season and we expect managements to curb their enthusiasm for Holiday ‘09 on upcoming Q3 conference calls. The BMO Sale Rack Index continues to run about 5-10% above last year. We would expect promotional activity to escalate in the remaining two weeks of November, given the month's slow start and unseasonably warm weather.”