Specialty Apparel Retailers Face High Commodity Costs And Wary Consumers Nov 11

Standard & Poors, November 2011

Abstract
2011 has been a challenging year for many specialty apparel retailers. Commodity price inflation, especially the quick escalation in cotton prices, has put margins under pressure. Meanwhile, the fragile recovery and worries over the longer-term health of the economy have hurt consumer confidence. At several large U.S. specialty apparel retailers, including Gap Inc. and J. Crew, same-store sales were flat or down modestly for the first six months of 2011. Still, a few specialty apparel companies such as Limited Brands Inc. and Express Inc., posted strong positive same-store sales in the past couple of quarters, reflecting an ability to keep up with fashion trends and to pass on higher costs. But while commodity prices have stabilized somewhat, margin pressures have...

Companies mentioned in this report are:
- Target Corp.
- Limited Brands Inc
- The Gap Inc.
- Kohl's Corp.
- J. Crew Group Inc.
- Fast Retailing Co. Ltd.
- BCBG Max Azria Group Inc.
- Express Inc.
- Jill Holdings LLC

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- Target Corp.
- Limited Brands Inc
- The Gap Inc.
- Kohl's Corp.
- J. Crew Group Inc.
- Fast Retailing Co. Ltd.
- BCBG Max Azria Group Inc.
- Express Inc.
- Jill Holdings LLC

Customers who bought this item also bought

• Analysis of the U.S. DoD Soldier and Crew Served Weapons Market
• Special Service & Homeland Security Vehicle Manufacturing in North America
• eLEARNING - Global Strategic Business Report
• Asia Pacific Aerospace Human Resource Market - Revenue Opportunities and Stakeholder Mapping
• Commercial And Military Flight Simulation - Global Strategic Business Report
• Commercial Unmanned Aerial Systems (UAS): Market Shares, Strategies, and Forecasts, Worldwide, 2012 to 2018
• Firstmark Corporation: Defense Company Profile and SWOT Report
• Unmanned Aerial Systems (UAS): Market Shares, Strategies, and Forecasts, Worldwide, 2012 to 2018
• Analyzing the Global Aerospace and Defense Industry
• Aerospace and Defense Industry - Global Strategic Business Report