2-8-18 11:35 AM EST | Email Article

Amazon.com Inc. (AMZN) has launched two private-label women's denim brands, which could have a "modest impact" on Gap Inc. (GPS) and Nordstrom Inc. (JWN), according to KeyBanc Capital Markets analysts led by Edward Yruma. The two brands are Hale and Denim Crush. Hale was designed by Adriano Goldschmid, who is behind the AG Jeans, Diesel and Gap 1969 brands. KeyBanc has identified 85 private-label Amazon brands, including 71 apparel brands, with many of them designated as Prime exclusive. "We view the continued push as detrimental to many of the traditional apparel companies under our coverage, and see Amazon's entrance to premium denim as most negative to Gap (denim focus but lower price points), VFC Corp. (VFC) (denim, but lower price points), and Nordstrom (strong premium denim assortment)," analysts wrote. Among VFC's brands are Wrangler and Lee. Amazon shares are up more than 69% for the past year, outpacing Gap (up 36.8%), VFC (up 63.4%) and Nordstrom (up 7.7%) for the period. The S&P 500 index is up 15.3% for the last 12 months.

-Tonya Garcia; 415-439-6400; AskNewswires@dowjones.com


(END) Dow Jones Newswires

02-08-18 1135ET

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