Creative Language to mask Downturn???
WalMart gives terrible forward guidance AFTER stimulous check and record food price increases and now this from Target's CEO:
MINNEAPOLIS--(BUSINESS WIRE)--Target Corporation (NYSE:TGT - News) today reported that its net retail sales for the four weeks ended August 2, 2008 increased 4.7 percent to $4,566 million from $4,363 million for the four weeks ended August 4, 2007. On this same basis, July comparable store sales declined 1.2 percent.
“Our comparable store sales performance in July was near the low end of our -1% to +1% planned range,” said Gregg Steinhafel, president and chief executive officer of Target Corporation.
It is clear that Target MISSED the low end of its guidance. Not only that it missed the guidance and had negative SSS comps after the stimulous check, record food price increases, and heavy discounting.
Now unemployment is rising and so is mortgage rates. Students are having a very difficult time finding loans for this upcoming school session. Morgan Stanley is cutting off HELOCs to thousands of its customers. States are firing workers and cutting spending at unprecedented rates. Many businesses accross the country are going bankrupt.
It apprears, despite the $100 BILLION stimulous check, the June July slowdown is running into August. How about a $trillion dollar stimulous check....or maybe a gazillion dollar stimous check?
When your are insolvent, printing money only makes things worse because there is no way to ever pay back the debt. At some point, you simply have to let the chips fall where they may.....and the chips are starting to fall.