On the window sign of an iconic luxury-retail store on Madison Avenue, the message was loud and clear... "EVERYTHING MUST BE SOLD! GOODBUYS, THEN GOODBYE!"
If You Don't Keep Up, This Happens
By Marc Chaikin, founder, Chaikin Analytics
On the window sign of an iconic luxury-retail store on Madison Avenue, the message was loud and clear...
"EVERYTHING MUST BE SOLD! GOODBUYS, THEN GOODBYE!"
For decades, Barneys New York had been the premier fashion store in the city. The company's Madison Avenue headquarters boasted nine floors and about 275,000 square feet of retail space.
Barneys started out as a men's discount clothing store in Manhattan in 1923. Over the following decades, it transformed and grew into a luxury-retail powerhouse.
By the 1980s, the company had developed a reputation for introducing the best global luxury brands to an increasingly wealthy American consumer market.
Its flagship New York store featured wall-to-wall designer labels – from Giorgio Armani to Balenciaga. If it was expensive, Barneys had it.
In short, it was a traditional luxury shopper's paradise.
The store was even prominently featured in the hit TV series Sex and the City. Its fashionista lead character, Carrie Bradshaw (played by Sarah Jessica Parker), considered Barneys one of her favorite places to shop.
But on February 23, 2020, Barneys New York closed...
And so did the company's two other stores in New York, along with those in San Francisco and Beverly Hills, California. All branches closed, all on the same day.
Fashion-industry figures called it the end of an era.
But it was ultimately a failure to adapt to changing times...
It could double your portfolio by foreseeing the biggest stock jumps in 2025 – to the day – with 83% back-tested accuracy. Already, it would've pointed to gains of 250% in 38 days on TTWO... 101% in 10 days on WSM... 353% in 48 days on AON... and more in our study. You can try it yourself on 5,000 stocks right now, free of charge.
It doesn't matter if you have money in the markets right now, or if you've been holding off until the dust settles in Washington. Right now, it's critical you know about the big market shift kicking off on January 20 – and which stocks could be most impacted. If you want to be on the right side of history, you need to act now.
When Barneys opened its gigantic store on Madison Avenue in 1993, it set the bar for luxury shopping in New York.
But that came at a price – in the form of costly rent.
You see, Barneys didn't own the property it did business on. Most of the company's money was tied up in expensive goods kept in inventory. Barneys sold those goods at huge markups to store customers.
The company's annual revenue reached nearly $1 billion at its height. One-third of that figure came from Madison Avenue alone.
This allowed Barneys to make good on millions of dollars of rent – including $16 million a year just for the Madison Avenue store.
The business model worked... as long as people kept going into the stores to buy goods.
But then the Internet came along – and took off. It gave rise to e-commerce and a strategy called direct to consumer ("DTC").
Brand manufacturers could now use the Internet to sell products directly to their customers. This allowed them to cut out the middlemen – typically, owners of retail establishments.
It didn't take long for consumers to realize they could buy luxury goods – the same ones found on Barneys' store shelves – from authorized online retailers.
These online retailers often displayed more designs and models than what physical stores like Barneys could keep in stock. And of course, customers could shop right from home.
Foot traffic to Barneys declined. And then, the landlord doubled the rent at the flagship Madison Avenue store. It was too much for Barneys to bear.
In mid-2019, the company filed for bankruptcy. And the Madison Avenue location wound down... until shuttering in February 2020.
Barneys became a cautionary tale in the $1.8 trillion global fashion industry. Even a nearly century-old business institution could end up in the trash bin of history if it failed to adapt to changing times.
Of course, the fashion industry didn't go anywhere. It's still a big business.
Folks, my point with this story is simple...
The world around us is always changing. It was true when the iconic Barneys closed in 2020. And it'll be true in 2025.
The investment decisions we make this year will determine whether we keep up with the changes.
Good investing,
Marc Chaikin
Market View
Major Indexes and Notable Sectors
# Hld: Bullish Neutral Bearish
Dow 30
-0.39%
9
11
10
S&P 500
-0.25%
63
254
179
Nasdaq
-0.19%
18
55
27
Small Caps
+0.08%
344
1093
466
Bonds
+0.26%
Energy
+1.19%
0
14
8
— According to the Chaikin Power Bar, Large Cap stocks are more Bearish than Small Cap stocks. Major indexes are mixed.
* * * *
Sector Tracker
Sector movement over the last 5 days
Energy
+2.49%
Utilities
-0.04%
Real Estate
-1.42%
Health Care
-1.43%
Staples
-1.66%
Communication
-1.78%
Financial
-1.83%
Industrials
-2.2%
Materials
-2.55%
Information Technology
-3.6%
Discretionary
-5.23%
* * * *
Industry Focus
Bank Services
7
63
24
Over the past 6 months, the Bank subsector (KBE) has outperformed the S&P 500 by +10.94%. However, its Power Bar ratio, which measures future potential, is Very Weak, with more Bearish than Bullish stocks. It is currently ranked #13 of 21 subsectors and has moved down 12 slots over the past week.
Indicative Stocks
AUB
Atlantic Union Banks
BAC
Bank of America Corp
BOH
Bank of Hawaii Corpo
* * * *
Top Movers
Gainers
VST
+8.55%
CEG
+8.44%
TPL
+6.7%
FSLR
+5.8%
UBER
+4.72%
Losers
TSLA
-6.08%
GM
-3.57%
PPG
-3.37%
EMN
-3.07%
BA
-2.9%
* * * *
Earnings Report
Reporting Today
Rating
Before Open
After Close
WBA
CAG, LW, STZ
No earnings reporting today.
Earnings Surprises
No significant Earnings Surprises in the Russell 3000.
* * * *
You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here.
You're receiving this e-mail at indra21poetra@gmail.com.
For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized investment advice.
Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors.
Chaikin Analytics forbids its writers from having a financial interest in any security they recommend to our subscribers. All employees of Chaikin Analytics, LLC (and affiliated companies) must wait 24 hours after an investment recommendation is published online – or 72 hours after a direct mail publication is sent – before acting on that recommendation.
This work is based on SEC filings, current events, interviews, corporate press releases, and what we've learned as financial journalists. It may contain errors, and you shouldn't make any investment decision based solely on what you read here. It's your money and your responsibility.
Tidak ada komentar:
Posting Komentar