28 Jan Sector Snap: Footwear Benefiting From Cold Weather
NEW YORK (AP) — A Canaccord Genuity analyst said Monday that retailers with cold-weather shoes and clothing appear to be getting a boost from the winter season thus far, thanks to a series of snowstorms and frigid temperatures.
Analyst Camilo Lyon said in a client note that Under Armour, Columbia Sportswear and Ugg maker Deckers Outdoor seem to be among the key beneficiaries of the winter weather.
The analyst said that Under Armour’s Cold Gear Infrared product line had a successful rollout and was timed well, given the weather conditions. The company also looks to gain from the addition of swimwear and boardshorts, Lyon said, as it will give the business a year-round approach to its shoppers.
Deckers should be able to use the strong response to its fall Ugg line to increase its orders in the third and fourth quarters. And Columbia Sportswear successfully worked through excess inventory and may stand to gain from its new Turbo Down jackets, the analyst said.
Lyon maintained “Buy” ratings on Under Armour and Deckers and kept a “Hold” rating for Columbia Sports.
Here’s how the companies are faring in midday trading on Monday:
Deckers Outdoor Corp. rose $1.27, or 1.7 percent, to $75.96
Under Armour Inc. slipped 40 cents to $83.09.
Columbia Sportswear Co. climbed $1.26, or 1.7 percent, to $75.80.