BofA analyst Justin Post reiterated a Buy rating on Amazon.Com Inc
The stock seems well-positioned to benefit from improving (post-reopening) online penetration growth.
The analyst views Black Friday Online sales data points as generally constructive (offline more subdued), though there is always a risk that promotions pulled forward December sales.
BofA analyst Robert F. Ohmes noted that Black Friday saw healthy consumer traffic from store visits.
Shoppers primarily sought discounted, lower-priced apparel and value items over high-ticket products.
Academy Sports And Outdoors, Inc
Dick's Sporting Goods Inc's
The competition for YETI Holdings, Inc
DKS and ASO are expanding their children's and toddlers' apparel selections.
Hibbett, Inc.
DKS showed mixed traffic across locations, with less promotional activity than competitors. Shoppers responded well to apparel discounts, as per the analyst.
ASO's traffic was robust, similar to last year, with solid sales in discounted apparel sections. Private-label apparel discounts increased year-over-year. Footwear selections improved. The hunting and ammunition section saw significant demand.
HIBB's strategy focused on promoting apparel purchases alongside footwear, with intense in-stock levels of key footwear styles but overall muted discounts. Apparel discounts were lower than last year.
Goldman Sachs analyst Kate McShane visited various retailers on Black Friday. Overall traffic still appeared muted relative to 2019 at most "traditional" Black Friday weekend destinations, with no lines waiting to get into stores at their openings.
There were certain retailers where traffic was a little stronger than average (DKS, Best Buy Co, Inc
Consumer electronics, toys, and sporting goods (footwear) were the areas within stores with the most traffic. Promotion signage was heavier in the stores than last year, with customers shopping in these areas more than in nonpromoted areas.
Morgan Stanley analyst Alex Straton's Black Friday store checks pointed to ~flat to down Y/Y traffic across Softlines Retail/Brands.
The analyst noted this sluggish demand outcome is potentially already accounted for in companies' cautious holiday and 4Q outlooks, given unchanged Y/Y Black Friday promotional and discounting levels and low initial holiday and 4Q expectations. Light traffic and limited promotions mean the margin over-sales trade-off across Hardline retail may persist through Q4.
Straton noted Aerie, Gap
Oppenheimer analyst Brian Nagel remains most upbeat upon athleisure, including Nike, Inc
During recent Black Friday visits and data analysis, Nagel found that despite Black Friday's decreasing significance in an extended, online-focused holiday season, robust spending data indicates a healthy consumer market, likely to maintain positive consumption into year-end.
The success is attributed to aggressive promotions and better inventory availability, driving year-on-year sales growth. The encouraging holiday season start should ease market worries despite investor concerns over a potential economic downturn. The softer spending in late October is a temporary, weather-related dip, not indicative of a broader negative trend.
Telsey Advisory Group analyst Dana Telsey noted that Black Friday weekend 2023 started earlier with promotions in mid-October amid cautious consumer expectations shaped by recent reports. Inventory was well-managed, and average discounts were 30%-40%. There were increases in in-store, online, and mobile sales.
The period between Thanksgiving and Christmas was the longest possible at 32 days, leading to more last-minute shopping. Store openings were later at 8:00-9:00 a.m., with peak traffic in the afternoon. Retailers used holiday decorations to enhance the shopping atmosphere. Early results indicate a successful weekend overall.
