Consumers seeking move from couch to lap of luxury: CIBC World Markets
NEW YORK, July 2 /CNW/ - CIBC (CM: TSX; NYSE) - Investors wary of retail stocks amid a softening housing market can look beyond home-related companies to branded clothing and luxury retailers, says CIBC World Markets specialty retailing analyst Dorothy Lakner. "With the slowdown in housing, consumers are spending less on home-related items, which is freeing up disposable income to spend on themselves and ego-gratifying items such as apparel, accessories and footwear," says Lakner. She adds that the healthy job market is likely to keep consumers spending on these items into the second half of 2007. "The clothing, accessories and footwear retailers likely to do the best will be well known brands, especially among teens and kids," says Lakner. "For adults, branded and luxury items including denim, handbags, shoes, jewellery and sunglasses, should also continue to do well." And she adds that men, typically the first ones to cut spending when the economy appears to be softening, are continuing to spend, stepping up in such categories as premium denim. "We see a growing appetite for brands and ever higher levels of luxury," says Lakner. "Consumers continue to trade up to designer and other branded lines because they feel an emotional connection to the product. Teens and tweens are more aware of designer and luxury labels. And parents now want the same brands for their kids as they buy for themselves." Lakner also notes that among the softline companies she covers, the kids businesses in each brand are growing faster than the rest. These themes, and the outlook for retail and consumer spending, should be top of mind among investors at the CIBC World Markets Consumer Growth Conference in Boston July 10-11. The event, considered one of the leading consumer conferences, features more than 60 consumer growth companies. The conference provides a valuable mid-year opportunity for investors to assess the state of the consumer and the outlook for retail, restaurant, hardline and consumer products industries. More information including a conference agenda can be found at: http://conferences.cibcwm.com/consumer07/. An audio web cast of conference will be available: (http://conferences.cibcwm.com/consumer07/) (enter code: boston2007). CIBC World Markets is the wholesale and corporate banking arm of CIBC, providing a range integrated credit and capital markets products, investment banking, and merchant banking to clients in key financial markets in North America and around the world. We provide innovative capital solutions and advisory expertise across a wide range of industries as well as top-ranked research for our corporate, government and institutional clients. The Consumer Growth Conference is organized by CIBC World Markets Institutional Equities.
For further information:
For further information: Media contact: Dorothy Lakner, Executive Director, Equity Research-Specialty Retailing/Softlines, CIBC World Markets at (212) 667-7255; or Tom Wallis, Communications & Public Affairs, CIBC, (416) 980-4048