NEW YORK, Nov. 22, 2013 /PRNewswire/ -- S&P Capital IQ Equity Research has published its 2013 Holiday Retail Outlook, which projects a 2.5% increase in general merchandise, apparel, furnishings, and other goods sales for the holiday season, which would be the weakest holiday season since 2008. Consumer confidence has fallen in recent months, and the equity retail analysts at S&P Capital IQ see many additional factors that are likely to make the 2013 holiday season a challenging one for retailers in general.
Despite the forecast for only modest retail growth, S&P Capital IQ equity analysts think Amazon.com (AMZN 363 ***), GameStop (GME 52 ****), and TJX Companies (TJX 63 ****) are well positioned for the holidays. "We think Amazon's recent rapid expansion of fulfillment centers gives it an edge over other online retailers when consumers are considering last-minute purchases since products can be delivered rapidly," said analyst Michael Souers. "Amazon's low prices, convenience of use, and a favorable returns policy should make the company a favorite of shoppers all season long. We see Amazon growing revenues 22% in the November-December time period, well above expected growth of online and traditional retailers."
GameStop should benefit from the introduction of the PlayStation 4 and Xbox One video game consoles, according to analyst Ian Gordon. "GameStop's marketshare in the video game industry has increased substantially over the last several years as competitors have de-emphasized the category given softening trends," added Mr. Gordon. "We think GameStop will be able to retain a significant portion of this share as others return, due to its large database of loyal customers and its buy-sell-trade ecosystem."
"We see TJX's T.J. Maxx, Marshalls, and HomeGoods brands attracting cost-conscious and time-strapped holiday shoppers this year with their strong value proposition and convenient off-mall store locations," said analyst Jason Asaeda. "We also look for the company, by operating its stores with lean inventories, to drive margin expansion through faster inventory turns and low markdowns."
About S&P Capital IQ's Equity Research
As one of the world's largest producers of independent research, S&P Capital IQ licenses its research to global institutions for their investors and advisors. S&P Capital IQ's team of experienced U.S., European and Asian equity analysts use a fundamental, bottom-up approach to assess a global universe of equities across industries worldwide. S&P Capital IQ's equity research can be found on MarketScopeAdvisor® and S&P Capital IQ. These online platforms provide financial advisors and investors with actionable investment intelligence on multiple asset classes including stocks, ETFs, mutual funds, fixed income and workflow tools that enable advisors to stay connected to the market and their investments. For more information, visit www.spcapitaliq.com.
About S&P Capital IQ
S&P Capital IQ, a business line of the McGraw Hill Financial (NYSE: MHFI), is a leading provider of multi-asset class and real time data, research and analytics to institutional investors, investment and commercial banks, investment advisors and wealth managers, corporations and universities around the world. Evaluated pricing is prepared by Standard & Poor's Securities Evaluations, Inc. a part of S&P Capital IQ and a registered investment adviser with the U.S. Securities & Exchange Commission. S&P Capital IQ provides a broad suite of capabilities designed to help track performance, generate alpha, and identify new trading and investment ideas, and perform risk analysis and mitigation strategies. Through leading desktop solutions such as S&P Capital IQ, Global Credit Portal and MarketScope Advisor desktops; enterprise solutions such as S&P Capital IQ Valuations; and research offerings including Leveraged Commentary & Data, Global Markets Intelligence, and company and funds research, S&P Capital IQ sharpens financial intelligence into the wisdom today's investors need. For more information, visit www.spcapitaliq.com.
All information provided by S&P Capital IQ is impersonal and not tailored to the needs of any person, entity or group of persons. Past performance is no indication of future results. S&P Capital IQ and its affiliates provide a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only correct as of the stated date of their issue. Prices, values, or income from any securities or investments mentioned in this report may fall against the interests of the investor and the investor may get back less than the amount invested. Where an investment is described as being likely to yield income, please note that the amount of income that the investor will receive from such an investment may fluctuate. Where an investment or security is denominated in a different currency to the investor's currency of reference, changes in rates of exchange may have an adverse effect on the value, price or income of or from that investment to the investor. The information contained in this report does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation of particular securities, financial instruments or strategies to you nor is it considered to be investment advice. Before acting on any recommendation in this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice.
This material is based upon information that we consider to be reliable, but neither S&P Capital IQ nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. With respect to reports issued to clients in Japan and in the case of inconsistencies between the English and Japanese version of a report, the English version prevails. Neither S&P Capital IQ nor its affiliates guarantee the accuracy of the translation. Assumptions, opinions and estimates constitute our judgment as of the date of this material and are subject to change without notice. Neither S&P Capital IQ nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance is not necessarily indicative of future results.
SOURCE S&P Capital IQ