Amazon to Open First In-Person Clothing Store in Los Angeles

Amazon (AMZN) has announced plans to open an in-person clothing retail store, Amazon Style, the company’s first-ever apparel store that will deal in men’s and women’s clothes as well as shoes and other accessories. The Los Angeles-based store should be up and running before the end of the year. Shares of the company fell 2.96% to close at $3,033.35 on January 20.

Amazon offers a platform that allows people to buy and sell items online. It also provides cloud computing services. Amazon’s upcoming earnings report for the fourth quarter of 2021 is scheduled for February 03, 2022.

About the Store

Amazon says that the new store combines innovative technology and world-class operations to help customers find what they like. Built around personalization, Amazon Style leverages machine learning algorithms to provide real-time recommendations for each customer, the company added.

With the tap of a button, customers should be able to send an item they like to the fitting room or straight to the pickup counter. While browsing and scanning items, Amazon says it will recommend picks that customers can try out.

Analyst’s Take

J.P.Morgan analyst Doug Anmuth has reiterated a Buy rating on the stock with a $4,350 price target, implying 43.41% upside potential to current levels. However, the analyst has warned that Amazon stock performance could be affected by lagging electronic payments as labor and operational costs rise.

While the company did perform well during the holiday season, the analyst has lowered his first quarter revenue estimate to $120.5 billion and lowered yearly earnings to $75.17 a share from $79.47 a share, citing the impact of inflationary costs.

Consensus among analysts is a Strong Buy based on 30 Buys. The average Amazon price target of $4,157.76 implies 37.07% upside potential to current levels.

Smart Score

AMZN scores 7 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.

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