By Michael Lombardi, MBA | June 2, 2014
In the first quarter of 2014, Retail Metrics, a retail industry research firm, found U.S. retailers missed their corporate earnings estimates by the most since the year 2000!
As I have been writing, consumer spending only increases when consumer confidence is rising. Unfortunately, in the U.S. economy today, that confidence is plummeting.
Last month, the Thomson Reuters/University of Michigan’s consumer sentiment index declined three percent from a month earlier. It … Read More
By George Leong, B.Comm. | January 7, 2014
I’m not a shopper by any means but I just got back from my annual trip to South Florida where I was able to take a look at the retailers that appear to be attracting tons of traffic in the retail sector.
First of all, the big-time shopping mall in the Orlando area is the “Premium Outlets” mall chain. The operator of these discount outlet malls across America (which recently … Read More
By Michael Lombardi, MBA | September 10, 2013
When retailers in the U.S. economy warn about their sales being in a slump or start to forecast rough roads ahead, it should be a warning to investors of an economic slowdown ahead. The logic behind this is very simple: Retailers in the U.S. economy show trends about consumer spending; if retailers are worried, it means consumer spending is in trouble.
One way to get an idea about bleak consumer … Read More
By Michael Lombardi, MBA | August 12, 2013
The retail sector of the economy acts as a gauge of consumer spending. When the retail sector shows weakness, it means consumer spending isn’t as strong. If that becomes the case, economists assume the U.S. economy will perform poorly since consumer spending makes up about two-thirds of U.S. gross domestic product (GDP).
As it stands, the retail sector is showing weakness and providing troubling news on consumer spending. According to … Read More
By Mitchell Clark, B.Comm. | May 7, 2013
The great outdoors are back—big time.
Among retail stocks, it was widely expected that Cabela’s Incorporated (NYSE/CAB) would report very good earnings results. But the company didn’t just announce good earnings—it hit a grand slam.
Cabela’s is the world’s largest direct marketer of hunting, fishing, camping, and other outdoors merchandise. It is one of those retail stocks that is implementing its business plan perfectly.
It currently has 41 stores in … Read More
By George Leong, B.Comm. | November 28, 2012
It’s now officially the holiday shopping season after a relatively decent Good Friday and Cyber Monday. Online spending, according to the Adobe Digital Index, is estimated to reach record sales of around $2.0 billion, up 17% year-over-year. (“Cyber Monday Sales Climb to Record $2 billion,” BGR, last accessed November 27, 2012.) If the numbers are any indication, the retail sector could be in for a strong holiday shopping season over … Read More
By George Leong, B.Comm. | November 23, 2012
Today is the big day for you shoppers! It’s Black Friday, and the retail sector is hoping you have the “shop until you drop” mentality this year. Retail heavyweights Wal-Mart Stores, Inc. (NYSE/WMT) and Target Corporation (NYSE/TGT) are two major retailers that decided to open their doors Thursday night and enter the Black Friday shopping window earlier.
At stake are billions of dollars and the potential to give the retail … Read More
By Mitchell Clark, B.Comm. | August 10, 2012
Want to know which stock market sector is making new record highs in this market? Retail stocks. Of course, the retail stocks that are doing great aren’t the big luxury names, but the discount retailers that are benefiting from the age of austerity. (See “Who Benefits in an Economy and Stock Market Like Today’s?”)
The stock market has been very kind to discount retail stocks that have produced solid revenue … Read More
By George Leong, B.Comm. | August 1, 2012
The shares of luxury stock Coach, Inc. (NYSE/COH) got sideswiped on Tuesday after the maker of high-end designer handbags and accessories fell short on its fiscal fourth-quarter sales. The company blamed the shortfall on lower-than-expected growth at factory stores. And if not for strong sales in China, the miss would have been much larger. China is extremely brand-conscious. Same-store sales from China grew at double digits versus a muted 1.7% … Read More