Retailers See Dismal January Sales, but Stocks Rally
Providing further evidence of a slowing U.S. economy and a more cautious consumer, Wal-Mart Stores and other retailers reported the weakest month of retail sales in about five years
Everyone's being hurt right now," said Dana Telsey, chief research officer at Telsey Advisory Group, in an interview on CNBC's "Squawk Box."
"The slowdown of the consumer is occurring, and I think we're going to see this continue, probably into February and March. March comparisons are very tough," she said.
Collectively, same-store sales fell short of expectations. The Thomson Financial Same Store Sales Index was projected to increase 1 percent, but it only inched up 0.3 percent. Excluding Wal-Mart, Thomson's index rose 0.2 percent. Year-earlier growth was 3.9 percent and 5.2 percent, respectively.
Excluding seasonal fluctuations, the sales were the worst since March 2003, when the Thomson Financial index was flat.
Despite the tough environment and the sluggish sales, retail stocks rallied Thursday.
Shares of both JCPenney and gap surged and were among the retail stocks posting the largest percentage gains. These two companies were among those retailers who showed that they were able to manage through the tough times in January and woo consumers with deep discounts. Although sales fell at both stores, the declines weren't as large as analysts were expecting. In addition, JCPenney expects fourth-quarter earnings to be at the high-end of its forecast, while Gap raised its guidance.
http://www.cnbc.com/id/23050232
Good read. (If you are into business) market consumer spending in retail is always slow after the holidays. What do you think.
Providing further evidence of a slowing U.S. economy and a more cautious consumer, Wal-Mart Stores and other retailers reported the weakest month of retail sales in about five years
Everyone's being hurt right now," said Dana Telsey, chief research officer at Telsey Advisory Group, in an interview on CNBC's "Squawk Box."
"The slowdown of the consumer is occurring, and I think we're going to see this continue, probably into February and March. March comparisons are very tough," she said.
Collectively, same-store sales fell short of expectations. The Thomson Financial Same Store Sales Index was projected to increase 1 percent, but it only inched up 0.3 percent. Excluding Wal-Mart, Thomson's index rose 0.2 percent. Year-earlier growth was 3.9 percent and 5.2 percent, respectively.
Excluding seasonal fluctuations, the sales were the worst since March 2003, when the Thomson Financial index was flat.
Despite the tough environment and the sluggish sales, retail stocks rallied Thursday.
Shares of both JCPenney and gap surged and were among the retail stocks posting the largest percentage gains. These two companies were among those retailers who showed that they were able to manage through the tough times in January and woo consumers with deep discounts. Although sales fell at both stores, the declines weren't as large as analysts were expecting. In addition, JCPenney expects fourth-quarter earnings to be at the high-end of its forecast, while Gap raised its guidance.
http://www.cnbc.com/id/23050232
Good read. (If you are into business) market consumer spending in retail is always slow after the holidays. What do you think.
