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Avery Enhances RFID-Enabled Solutions

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In an attempt to improve inventory accuracy and visibility for retailers and brands, Avery Dennison Retail Branding and Information Solutions (:RBIS), a unit of Avery Dennison Corporation (AVY), has widened its Radio-frequency identification (:RFID) portfolio.

Avery Dennison RBIS is an integrated solutions provider of ultra-high frequency (:UHF) RFID inlays. Avery Dennison RFID inlays are widely used by global apparel brands and retailers including Macy's, Inc. (M), Marks & Spencer, Lord &Taylor, Gerry Weber and C&A.

The world retail industry is continuously growing and requires appropriate technology to leverage data and analytics in brand and product management. Avery’s RFID-based unique identifier is beneficial in this respect as it can collect and organize data exponentially more speedily and accurately without the line of sight required by traditional barcode systems.

The new RFID portfolio, which contains UHF Gen2-compliant inlays, will help in inventory management including jewelry, cosmetics, healthcare, houseware and footwear. It will also improve labor efficiency and loss prevention. Retail transactions will become simpler and more convenient with this advanced system.

The latest UHF solutions comprise various inlays like AD-320u7, AD-172u7, AD-160u7, AD-180u7, AD-383u7 and AD-381m5. These new solutions will be exhibited at RFID Journal Live 2014 in Orlando from April 8 to April 10.

AD-320u7, which is a tested and qualified solution, is the smallest label size to provide excellent read range performance on a broad range of item-level apparel categories, reducing label complexity across the supply chain. In addition, AD-383u7 and AD-381m5 have been developed for item-level apparel applications and major global retailers.

On the other hand, AD-172u7 has been optimized, tested and qualified for excellent hand-held performance for use in retail environments for fashion and fine jewelry. AD-160u7 caters to the cosmetic category in high-density read environments. This inlay is for packaging with limited space, as necessary in the case of lipstick tubes, eyeliner pencils as well as bottled liquids and lotions. AD-180u7 is designed for eye shadow and cylindrical type packaging.

Avery Dennison RBIS has also introduced RFID inlay solutions that provide significant benefits for a wide variety of non-retail verticals, including pharmaceutical and healthcare, aviation baggage, food and automotive, library/media and logistics.

For full-year 2013, Avery reported adjusted earnings per share (EPS) of $2.68, a 37% improvement from $1.96 in 2012. Revenues for the year 2013 increased 5% year over year to $6.14 billion. Both revenues and earnings surpassed the Zacks Consensus Estimate.

Avery expects its full-year 2014 adjusted earnings in the range of $2.90 to $3.20 per share. The company will benefit from the recent divestiture of its weaker Office Products business, which will facilitate focus on market-leading, pressure-sensitive materials business, along with the Retail Branding and Information Solutions segments.

Furthermore, Avery will gain from restructuring program implemented in 2012 to cut costs across all its business segments. Additionally, active capital deployment through share repurchases and dividend payouts are expected to aid the company’s growth. However, the uncertain macroeconomic environment remains a challenge.

Pasadena, CA-based Avery Dennison manufactures pressure-sensitive materials and tickets, tags, labels and other converted products. The company has over 200 manufacturing and distribution facilities in more than 60 countries.

Currently, Avery has a Zacks Rank #4 (Sell). Some better-ranked players in the industrial product sector include Alamo Group, Inc. (ALG) and Altra Industrial Motion Corp. (AIMC), both of which have a Zacks Rank #2 (Buy).

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