June Terrible....July Worse?????
Do you think Crammer will inform you of the following?:
Governors accross America are terrified at the dramatic drop off in tax revenues for the month of June. Unprecedent steps are being taken to try to bridge the gap......such as firing 20K workers and reducing the pay to minimum wage for 200K others in just one state.
Homebuilder Standard Pacific told us that June was slower than the other two months in Q2 and the slowdown continued into July. Now CarMax reveals the following:
RICHMOND, Va.--(BUSINESS WIRE)--CarMax, Inc. (NYSE:KMX - News) today reported that comparable store used unit sales declined by an average of 17% for the months of June and July. “As reported in June, the sudden and dramatic drop-off in our sales beginning Memorial Day weekend caused us to withdraw our previous sales and earnings guidance for the fiscal year,” said Tom Folliard, president and chief executive officer. Through Thursday, May 22, our comparable store used unit sales for the month of May were slightly below our expectations, but they were still a positive 1%. From Memorial Day weekend through the end of May, however, comparable store used unit sales declined by 5 percentage points. The slowdown in customer traffic and sales closely followed the sharp rise in gasoline prices, which topped $4.00 per gallon nationally in early June. In June, our customer traffic and comparable store used unit sales eroded further, and July was somewhat weaker still, resulting in an average decline in comparable store used unit sales of 17% for the two months. CarMax, Inc.
As a result of these unprecedented declines, we have made dramatic reductions in our used vehicle inventory levels in June and July to bring them in line with the lower current sales rate and have adjusted the vehicle mix to reflect changes in consumer preferences. Compared with inventory levels of stores open at May 31, 2008, we reduced our used vehicle inventory by approximately 9,500 units as of July 31, representing $150 million. In addition, we have been aggressive in reducing our variable store staffing levels (primarily through scheduling and attrition), are reevaluating all open positions and are continuing to focus on controlling overhead expenses.
This tune is becoming more and more common for June and July....but Crammer says buy buy buy???????
Condo associations infested with trash up to the fourth floor and city officals say more on the way?????
States reducing the wage of 200K of its workers to minimum wage and few seem concerned??????
Three department store chains(about 500 large stores) within a few weeks declare BK and everything is fine????
Thousands upon thousands of other retailers shutting down and the second half looks better?????
Priceline tells us airlines dramatically cutting capacity in the Fall and over 600K hotel units under construction?????
Vegas is supposed to be recession proof and now gambling revenues falling and major developments shutting down before completion and others having difficulties raising financing????
No wonder why revenues to our states are evaporating in June and July....things are simply slowing dramtically or shutting down. Get ready, your government should be knocking soon to help out with all these so called bail out packages. Remember that $600 we sent you....please send us back $6000. As Americans, isn't it our duty to pay more taxes????
It will be interesting what will happen when America wakes up one morning and llearns the truth......it will be interesting if Crammer tells you "I told you so"