Mizuho: Expect Mixed November Comps For The Gap, L Brands And Zumiez

Betty Chen of Mizuho Securities is expecting most retailers to demonstrate “flattish” sales trends in their November sales reports.

“Lower gas prices and improving unemployment trends have not been overtly visible in overall consumer spending,” Chen wrote in a note on Tuesday. The analyst adds that seasonal purchases may have been aided due to cooler weather in the North East and Midwest along with an elongated promotional days.

Chen expects Gap Inc (NYSE: GPS) to report consolidated November comps of negative 3 percent to 0 percent, below consensus expectations of -1.7 percent. In the same month last year the company reported a +2 percent comp.

Chen expects L Brands Inc (NYSE: LB) to report November same-store sales of +5 percent to 7 percent, above consensus expectations of positive 3.8 percent. In the same month last year the company reported a -5 percent comp.

Chen expects Zumiez Inc. (NASDAQ: ZUMZ) to report November comps of +2 percent to 4 percent, generally in-line with consensus expectations of +2.7 percent. In the same month last year the company reported a +1.7 percent comp.

Shares of The Gap are Buy rated with a $45 price target.

Shares of L Brands are Neutral rated with a $76 price target.

Shares of Zumiez are Neutral rated with a $30 price target.