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Two Stocks for the Unique Boom Opportunity in the Fashion Space (FBCD, FTCH, NKE, SKX, LULU, SFIX, TJX, TGT)

As LA Market Week gets set to kick off for fashion brands this weekend (1), major brands could see some extra focus. This is a critical time for fashion…

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As LA Market Week gets set to kick off for fashion brands this weekend (1), major brands could see some extra focus. This is a critical time for fashion brands because apparel is actually emerging as an unlikely growth market opportunity due to the reopening dynamic in the wake of the global COVID-19 pandemic. (2)

It’s not rocket science if you think about it.

People went two years in cultural “hermit” mode, conducting meetings over Zoom or audio only, avoiding restaurants, bars, public meeting places, concert halls, sports events, nightclubs – anywhere where people might care how they looked – due to the risk of viral infection in social settings.

As a consequence, the fashion industry was one of the hardest hit spaces in the stock market. (2)

But it may turn out that abstaining from fashion consumption simply amounts to a recipe for pent-up demand now that we are all emerging back out into the world, suddenly concerned again about what we are wearing.

We are also generally a bit bigger around the middle according to a few studies (3). We ate more, moved less, and were less concerned about our appearance for two years. As a result, we gained weight. A lot. That translates into a need for new clothes because the pre-pandemic wardrobe doesn’t fit quite as well. (4)

To sum up, fashion brands could be poised for a near-term boom as the post-pandemic reopening process plays out, resulting in pent-up demand for apparel augmented by the need to upsize wardrobes. That could extend as people eventually get their diet and gym routines ramped up and then need to go shopping for another round to downsize the wardrobe.

In any case, the apparel space is rarely situated as a growth leadership theme. But these are unusual times, and savvy investors stand to benefit from a dynamic that the crowd seems to have failed to spot so far.

That could help companies like Nike Inc. (NYSE:NKE), Skechers USA Inc. (NYSE:SKX), lululemon athletica inc. (Nasdaq:LULU), Stitch Fix Inc. (Nasdaq:SFIX), TJX Cos. (NYSE:TJX), and Target Corp. (NYSE:TGT).

Farfetch and FBC Holding in Focus

However, there are a couple of names that might deserve extra attention because they’ve embraced a model that capitalizes on top brands through marketing networks, hubs, and stores: Farfetch Ltd. (NYSE:FTCH) and FBC Holding Inc. (OTC US:FBCD).

Both look especially interesting and could represent significant opportunities as the growth theme discussed above plays out over coming months.

Farfetch Ltd. (NYSE:FTCH) bills itself as the leading global platform for the luxury fashion industry. The company was founded in 2007 by José Neves and began as an e-commerce marketplace for luxury boutiques around the world.

Today, according to company materials, the FARFETCH Marketplace connects customers in over 190 countries and territories with items from more than 50 countries and more than 1,400 of the world’s best brands, boutiques and department stores, delivering a truly unique shopping experience and access to the most extensive selection of luxury on a single platform.

Farfetch Ltd. (NYSE:FTCH) recently announced the closing of the $200 million common equity minority investment by FARFETCH Limited (NYSE: FTCH), the leading global platform for the luxury fashion industry, in NMG, and the signing of the commercial agreements with FARFETCH Platform Solutions (FPS). NMG will use the proceeds to further accelerate growth and innovation through investments in technology and digital capabilities to make life extraordinary for its customers.

“We are pleased to share the successful closing of the investment by FARFETCH in NMG and now that the commercial agreements are final,  we are excited to transition to realizing the important benefits of this partnership,” said Geoffroy van Raemdonck, CEO of Neiman Marcus Group. “FARFETCH’s investment demonstrates its confidence in our omnichannel strategy, and we look forward to partnering with them to continue revolutionizing the luxury customer experience and delivering value to all our stakeholders.”

The context for this announcement is a bit of a bid, with shares acting well over the past five days, up about 17% in that timeframe. Shares of the stock have powered higher over the past month, rallying roughly 17% in that time on strong overall action.

Farfetch Ltd. (NYSE:FTCH) managed to rope in revenues totaling $514.8M in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top line growth of 6.1%, as compared to year-ago data in comparable terms. In addition, the company has a strong balance sheet, with cash levels exceeding current liabilities ($1B against $865.6M). (6)

FBC Holding Inc. (OTC US:FBCD) has a similar model in terms of reselling top luxury brands through its Hyperviolent distribution business (https://hyperviolent.com), where it sells apparel from leading names including Dior, Adidas, COMME de GARCONS, Palm Angels and other trendsetting labels. However, when compared alongside FTCH, FBCD is much earlier stage name that trades much cheaper, with a market cap of only just above a million dollars at present. (7)

FBCD also has its own bourgeoning brand, Formrunner (https://formrunnerapparel.com/), which is a wholly owned subsidiary of FBC Holding, Inc. Formrunner Apparel Inc. carries a variety of Top-Notch Streetwear & Accessories located in Scottsdale, Arizona.

FBC Holding Inc. (OTC US:FBCD) most recently announced that it is exhibiting at Label Array located at the California Market Center in downtown Los Angeles from June 13th-15th.

According to its release, with its rich legacy as the first wholesale fashion building on the West Coast, the newly transformed CMC continues to be the LA Fashion District’s premier hub connecting Buyers and Brands during LA Market Week. As the relaunched CMC grows and evolves, each new LA Market presents a fresh and exciting selection of new Showrooms and new Brands for retailers to shop, in addition to longtime favorites. Formrunner Apparel is always working diligently to expand and bring in additional streams of revenue, and this is a perfect opportunity to do so. (8)

President & CEO Lisa Nelson stated in the release, “After making successful connections at the Las Vegas Fashion Event, we are beyond thrilled to draw in more multinational companies to collaborate and work with! Doing these events are extremely beneficial in every aspect of the business and we can’t wait to yet again see the results.”

FBC Holding Inc. (OTC US:FBCD) is a penny stock trading on the OTC. But the company is showing tangible signs of growth at the brand level, and shares of the stock have been moving higher over the past month as the company ramps up its core model, up as much as 150% in that time after sinking to a successful test of the $0.0002/share level in May. (9)

 

References:

  1. https://www.californiamarketcenter.com/eventscalendar
  2. https://www.fool.com/investing/stock-market/market-sectors/consumer-discretionary/apparel-stocks/
  3. https://www.muhealth.org/our-stories/pandemic-weight-gain-its-thing
  4. https://www.health.harvard.edu/staying-healthy/pandemic-weight-gain-not-your-imagination
  5. https://finance.yahoo.com/news/farfetch-neiman-marcus-group-announce-171500438.html
  6. https://www.marketwatch.com/investing/stock/ftch?mod=search_symbol
  7. https://www.otcmarkets.com/stock/FBCD/security
  8. https://www.otcmarkets.com/stock/FBCD/news/FBC-Holding-Inc-FBCD-Set-to-Exhibit-at-California-Market-Fashion-Week-in-Los-Angeles?id=360147
  9. https://www.tradingview.com/chart/?symbol=OTC%3AFBCD

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The post Two Stocks for the Unique Boom Opportunity in the Fashion Space (FBCD, FTCH, NKE, SKX, LULU, SFIX, TJX, TGT) appeared first on Wall Street PR.

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Homes listed for sale in early June sell for $7,700 more

New Zillow research suggests the spring home shopping season may see a second wave this summer if mortgage rates fall
The post Homes listed for sale in…

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  • A Zillow analysis of 2023 home sales finds homes listed in the first two weeks of June sold for 2.3% more. 
  • The best time to list a home for sale is a month later than it was in 2019, likely driven by mortgage rates.
  • The best time to list can be as early as the second half of February in San Francisco, and as late as the first half of July in New York and Philadelphia. 

Spring home sellers looking to maximize their sale price may want to wait it out and list their home for sale in the first half of June. A new Zillow® analysis of 2023 sales found that homes listed in the first two weeks of June sold for 2.3% more, a $7,700 boost on a typical U.S. home.  

The best time to list consistently had been early May in the years leading up to the pandemic. The shift to June suggests mortgage rates are strongly influencing demand on top of the usual seasonality that brings buyers to the market in the spring. This home-shopping season is poised to follow a similar pattern as that in 2023, with the potential for a second wave if the Federal Reserve lowers interest rates midyear or later. 

The 2.3% sale price premium registered last June followed the first spring in more than 15 years with mortgage rates over 6% on a 30-year fixed-rate loan. The high rates put home buyers on the back foot, and as rates continued upward through May, they were still reassessing and less likely to bid boldly. In June, however, rates pulled back a little from 6.79% to 6.67%, which likely presented an opportunity for determined buyers heading into summer. More buyers understood their market position and could afford to transact, boosting competition and sale prices.

The old logic was that sellers could earn a premium by listing in late spring, when search activity hit its peak. Now, with persistently low inventory, mortgage rate fluctuations make their own seasonality. First-time home buyers who are on the edge of qualifying for a home loan may dip in and out of the market, depending on what’s happening with rates. It is almost certain the Federal Reserve will push back any interest-rate cuts to mid-2024 at the earliest. If mortgage rates follow, that could bring another surge of buyers later this year.

Mortgage rates have been impacting affordability and sale prices since they began rising rapidly two years ago. In 2022, sellers nationwide saw the highest sale premium when they listed their home in late March, right before rates barreled past 5% and continued climbing. 

Zillow’s research finds the best time to list can vary widely by metropolitan area. In 2023, it was as early as the second half of February in San Francisco, and as late as the first half of July in New York. Thirty of the top 35 largest metro areas saw for-sale listings command the highest sale prices between May and early July last year. 

Zillow also found a wide range in the sale price premiums associated with homes listed during those peak periods. At the hottest time of the year in San Jose, homes sold for 5.5% more, a $88,000 boost on a typical home. Meanwhile, homes in San Antonio sold for 1.9% more during that same time period.  

 

Metropolitan Area Best Time to List Price Premium Dollar Boost
United States First half of June 2.3% $7,700
New York, NY First half of July 2.4% $15,500
Los Angeles, CA First half of May 4.1% $39,300
Chicago, IL First half of June 2.8% $8,800
Dallas, TX First half of June 2.5% $9,200
Houston, TX Second half of April 2.0% $6,200
Washington, DC Second half of June 2.2% $12,700
Philadelphia, PA First half of July 2.4% $8,200
Miami, FL First half of June 2.3% $12,900
Atlanta, GA Second half of June 2.3% $8,700
Boston, MA Second half of May 3.5% $23,600
Phoenix, AZ First half of June 3.2% $14,700
San Francisco, CA Second half of February 4.2% $50,300
Riverside, CA First half of May 2.7% $15,600
Detroit, MI First half of July 3.3% $7,900
Seattle, WA First half of June 4.3% $31,500
Minneapolis, MN Second half of May 3.7% $13,400
San Diego, CA Second half of April 3.1% $29,600
Tampa, FL Second half of June 2.1% $8,000
Denver, CO Second half of May 2.9% $16,900
Baltimore, MD First half of July 2.2% $8,200
St. Louis, MO First half of June 2.9% $7,000
Orlando, FL First half of June 2.2% $8,700
Charlotte, NC Second half of May 3.0% $11,000
San Antonio, TX First half of June 1.9% $5,400
Portland, OR Second half of April 2.6% $14,300
Sacramento, CA First half of June 3.2% $17,900
Pittsburgh, PA Second half of June 2.3% $4,700
Cincinnati, OH Second half of April 2.7% $7,500
Austin, TX Second half of May 2.8% $12,600
Las Vegas, NV First half of June 3.4% $14,600
Kansas City, MO Second half of May 2.5% $7,300
Columbus, OH Second half of June 3.3% $10,400
Indianapolis, IN First half of July 3.0% $8,100
Cleveland, OH First half of July  3.4% $7,400
San Jose, CA First half of June 5.5% $88,400

 

The post Homes listed for sale in early June sell for $7,700 more appeared first on Zillow Research.

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Survey Shows Declining Concerns Among Americans About COVID-19

Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat"…

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Survey Shows Declining Concerns Among Americans About COVID-19

A new survey reveals that only 20% of Americans view covid-19 as "a major threat" to the health of the US population - a sharp decline from a high of 67% in July 2020.

(SARMDY/Shutterstock)

What's more, the Pew Research Center survey conducted from Feb. 7 to Feb. 11 showed that just 10% of Americans are concerned that they will  catch the disease and require hospitalization.

"This data represents a low ebb of public concern about the virus that reached its height in the summer and fall of 2020, when as many as two-thirds of Americans viewed COVID-19 as a major threat to public health," reads the report, which was published March 7.

According to the survey, half of the participants understand the significance of researchers and healthcare providers in understanding and treating long COVID - however 27% of participants consider this issue less important, while 22% of Americans are unaware of long COVID.

What's more, while Democrats were far more worried than Republicans in the past, that gap has narrowed significantly.

"In the pandemic’s first year, Democrats were routinely about 40 points more likely than Republicans to view the coronavirus as a major threat to the health of the U.S. population. This gap has waned as overall levels of concern have fallen," reads the report.

More via the Epoch Times;

The survey found that three in ten Democrats under 50 have received an updated COVID-19 vaccine, compared with 66 percent of Democrats ages 65 and older.

Moreover, 66 percent of Democrats ages 65 and older have received the updated COVID-19 vaccine, while only 24 percent of Republicans ages 65 and older have done so.

“This 42-point partisan gap is much wider now than at other points since the start of the outbreak. For instance, in August 2021, 93 percent of older Democrats and 78 percent of older Republicans said they had received all the shots needed to be fully vaccinated (a 15-point gap),” it noted.

COVID-19 No Longer an Emergency

The U.S. Centers for Disease Control and Prevention (CDC) recently issued its updated recommendations for the virus, which no longer require people to stay home for five days after testing positive for COVID-19.

The updated guidance recommends that people who contracted a respiratory virus stay home, and they can resume normal activities when their symptoms improve overall and their fever subsides for 24 hours without medication.

“We still must use the commonsense solutions we know work to protect ourselves and others from serious illness from respiratory viruses, this includes vaccination, treatment, and staying home when we get sick,” CDC director Dr. Mandy Cohen said in a statement.

The CDC said that while the virus remains a threat, it is now less likely to cause severe illness because of widespread immunity and improved tools to prevent and treat the disease.

Importantly, states and countries that have already adjusted recommended isolation times have not seen increased hospitalizations or deaths related to COVID-19,” it stated.

The federal government suspended its free at-home COVID-19 test program on March 8, according to a website set up by the government, following a decrease in COVID-19-related hospitalizations.

According to the CDC, hospitalization rates for COVID-19 and influenza diseases remain “elevated” but are decreasing in some parts of the United States.

Tyler Durden Sun, 03/10/2024 - 22:45

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Rand Paul Teases Senate GOP Leader Run – Musk Says “I Would Support”

Rand Paul Teases Senate GOP Leader Run – Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump…

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Rand Paul Teases Senate GOP Leader Run - Musk Says "I Would Support"

Republican Kentucky Senator Rand Paul on Friday hinted that he may jump into the race to become the next Senate GOP leader, and Elon Musk was quick to support the idea. Republicans must find a successor for periodically malfunctioning Mitch McConnell, who recently announced he'll step down in November, though intending to keep his Senate seat until his term ends in January 2027, when he'd be within weeks of turning 86. 

So far, the announced field consists of two quintessential establishment types: John Cornyn of Texas and John Thune of South Dakota. While John Barrasso's name had been thrown around as one of "The Three Johns" considered top contenders, the Wyoming senator on Tuesday said he'll instead seek the number two slot as party whip. 

Paul used X to tease his potential bid for the position which -- if the GOP takes back the upper chamber in November -- could graduate from Minority Leader to Majority Leader. He started by telling his 5.1 million followers he'd had lots of people asking him about his interest in running...

...then followed up with a poll in which he predictably annihilated Cornyn and Thune, taking a 96% share as of Friday night, with the other two below 2% each. 

Elon Musk was quick to back the idea of Paul as GOP leader, while daring Cornyn and Thune to follow Paul's lead by throwing their names out for consideration by the Twitter-verse X-verse. 

Paul has been a stalwart opponent of security-state mass surveillance, foreign interventionism -- to include shoveling billions of dollars into the proxy war in Ukraine -- and out-of-control spending in general. He demonstrated the latter passion on the Senate floor this week as he ridiculed the latest kick-the-can spending package:   

In February, Paul used Senate rules to force his colleagues into a grueling Super Bowl weekend of votes, as he worked to derail a $95 billion foreign aid bill. "I think we should stay here as long as it takes,” said Paul. “If it takes a week or a month, I’ll force them to stay here to discuss why they think the border of Ukraine is more important than the US border.”

Don't expect a Majority Leader Paul to ditch the filibuster -- he's been a hardy user of the legislative delay tactic. In 2013, he spoke for 13 hours to fight the nomination of John Brennan as CIA director. In 2015, he orated for 10-and-a-half-hours to oppose extension of the Patriot Act

Rand Paul amid his 10 1/2 hour filibuster in 2015

Among the general public, Paul is probably best known as Capitol Hill's chief tormentor of Dr. Anthony Fauci, who was director of the National Institute of Allergy and Infectious Disease during the Covid-19 pandemic. Paul says the evidence indicates the virus emerged from China's Wuhan Institute of Virology. He's accused Fauci and other members of the US government public health apparatus of evading questions about their funding of the Chinese lab's "gain of function" research, which takes natural viruses and morphs them into something more dangerous. Paul has pointedly said that Fauci committed perjury in congressional hearings and that he belongs in jail "without question."   

Musk is neither the only nor the first noteworthy figure to back Paul for party leader. Just hours after McConnell announced his upcoming step-down from leadership, independent 2024 presidential candidate Robert F. Kennedy, Jr voiced his support: 

In a testament to the extent to which the establishment recoils at the libertarian-minded Paul, mainstream media outlets -- which have been quick to report on other developments in the majority leader race -- pretended not to notice that Paul had signaled his interest in the job. More than 24 hours after Paul's test-the-waters tweet-fest began, not a single major outlet had brought it to the attention of their audience. 

That may be his strongest endorsement yet. 

Tyler Durden Sun, 03/10/2024 - 20:25

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