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February 2011

Recs

17

How Retailers Are Coping With Rising Costs

February 24, 2011 – Comments (3) | RELATED TICKERS: WMT , M , LOW

As major retailers report 2010 results, the focus will continue to be on the surging costs of commodities and labor. As oil once again hovers above $100 per barrel and cotton prices stand at a 150-year high, retailers have tough choices as far as raising prices or passing the costs onto consumers.  [more]

Recs

5

Retailers Kick off the Earnings Parade

February 22, 2011 – Comments (2) | RELATED TICKERS: WMT , M , HD

Earnings season is in full swing, as four major retailers including 3 of America’s top 15 largest retailers reported 4th quarter and fiscal year results this morning. Expectations were running high as consumers have regained confidence, but worries about inflation and persistently high unemployment will be the focus for the rest of the year.  [more]

Recs

5

January U.S. Retail Sales Rise Less Than Forecast

February 15, 2011 – Comments (1)

The severe weather across much of the country took a bite out of retail sales in January, as promotional activity and gift card redemptions were not enough to offset the effects of winter storms, limited winter merchandise stocks, and consumers who seem to be mired in a post-Holiday hangover.  [more]

Recs

3

January Retail Same-Store Sales Robust Despite Weather

February 03, 2011 – Comments (0) | RELATED TICKERS: ANF , LB , TGT

Despite record low temperatures and severe storms across most of the country, retailers managed to post stellar results in January. Consumers appeared to be mired in a post-holiday hangover and weekly sales tracking suggested performance was going to underwhelm during the month, but most companies were able to beat estimates and sustain margins on strong sales of winter clearance merchandise and limited discounting.

Total sales for the 30 retailers we track increased 7.3% from a year ago to $28.4 billion in January, while same-store sales rose 4.9% on top of a 3.2% gain last year – this was the 17th straight gain after 12 consecutive months of declines. For the 12 months ended January, which is the fiscal year-end for the majority of retailers, total sales rose 6.2% to $409.1 billion and same-store sales increased 3.8% after a 1.1% decline in the prior-year period.

22 out of the 30 retailers posted comparable sales gains for the month, compared to 17 of 30 last January. Top performers this month were Limited Brands (+24% comp), Zumiez (+15.3%), Neiman Marcus (+9.8%) and Costco (+9%), while laggards included American Eagle Outfitters (-6%), Abercrombie & Fitch (-4%) and Hot Topic (-3.3%).

Most retailers were up against tough comps from last January, storms negatively affected performance by about 1%-3% and rising gas prices are most likely eating into discretionary spending. However, the robust performance in January and for the fourth quarter suggests this retail rebound is sustainable.  [more]

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