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Posted
Sep 15 2009, 01:30 PM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
This article is written by Minyanville's Kristen Graham
As one of the few freestanding electronic retailers left standing, I’ve found myself warming up to Best Buy (BBY) lately. See, Best Buy is a retail winner. This morning, the company released second-quarter results have further piqued my interest in the company.
The retailer missed earnings estimates as profits fell 22%. But total revenue rose 12%, boosted by the 170 new European stores it opened over the last year. And domestic sales increased 2% -- a solid figure in my mind as positive sales growth is pretty rare in the retail space these days. See Also: Best Buy boosts full-year forecast More importantly though, inventory fell 6.1%, positioning the company to enter the holiday season with a lean balance sheet. And market share soared 2% as its formerly crippled rival Circuit City is no longer in operation and current competitors just don’t offer as impressive of a selection of merchandise.
Despite increased traffic flow, the average ticket fell. This comes as no surprise as consumers simply don’t have the funds to make larger purchases right now. The key point here, though, is that consumers are still going to Best Buy for their electronic needs. Sure -- they may not be making purchases as large as they once would have, but they're still going or switching to the big-box retailer when they need electronic goods.
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Posted
Sep 09 2009, 11:38 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
This article is written by Minyanville's Kristin Graham It’s only September, but retailers already have their eye on the upcoming holidays. With the disastrous 2008 shopping season in our rear-view mirror, many analysts are hopeful that the 2009 holidays will be a bit more joyous.
According to a survey by Information Resources Inc (IRI), roughly 77% of respondents said they're willing to splurge on a gift for the 2009 holidays even if times are tough. Based on its data, the market research firm stated that it's “conservatively optimistic” about holiday spending. For more on retailers, see "Retailers Go Back-to-School." As a retail analyst, it's become depressing to watch over the sector in the past year. I know it’s easy to wish for an industry-wide improvement. But to be frank, I just don’t foresee recovery anytime soon -- at least not before the holidays are over. And I think investors should be prepared for another gloomy shopping season. Bing: Retail Stocks
Right now, the economy is still in the beginning states of recuperating from a very traumatic recession. Consumer spending is usually one of the last pieces of the economy to recover. So consumers may respond to surveys saying the want to splurge and spend more. My question is whether that’s really feasible.
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Posted
Aug 14 2009, 04:04 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Two pieces of information came into the market today, both about the troubled housing situation. The foreclosure filings and the interest rates on 30-year fixed rate mortgages affect the housing market in different but disturbing ways.
RealtyTrac released its monthly data on the state of foreclosures. They rose 7% in July from June to 360,150. The service said that one in every 355 housing units in America received a foreclosure filing last month, a clinical way to say that an unbelievable number of people are losing their homes.
Nevada, still probably the gambling capital of the world, fittingly was first in foreclosure rates for the 35th consecutive month. Foreclosures in the state are six times the national average.
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Posted
Jul 02 2009, 03:24 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
 Several car companies have offered to make monthly payments for new auto buyers who lose jobs. Hyundai even has a program to take some vehicles back if their owners can’t find work.
The Kmart division of Sears (SHLD) is joining the parade of firms hoping to aid those down on their luck. According to the Financial Times, the program will start in Michigan, the hardest-hit state where joblessness is above 14%. It is also the home of Kmart’s former parent.
The paper writes that Kmart will give unemployed people in Michigan a “Smart Assist Savings” card for six months, which gets them 20% off the store’s private label goods.
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Posted
Jun 08 2009, 10:07 AM
by
Kim Peterson
Money Blog: Top Stocks Blog - MSN Money
Some consumer stocks have shot up too far too fast, warns Bloomberg's John Dorfman. He suggests that investors trim their holdings in the following: Amazon, Starbucks, Sears Holding and Whole Foods. Dorfman is concerned about the high debt levels that Americans have run up. Consumer debt was about 97% of the U.S. gross domestic product at the end of last year, Dorfman writes. And while Americans are starting to behave more responsibly, saving more and borrowing less, that's a long and slow process, he adds. Amazon (AMZN) has risen 71% this year, but how long can this go on, Dorfman asks. "Amazon is retailing an increasing variety of goods, and is a more mature company than it was five years ago," he writes. "The chance of its sustaining an earnings growth rate above 50 percent is remote." And Starbucks (SBUX), while up 59% this year, earned a so-so return
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Posted
Jun 04 2009, 03:37 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Many big-box retailers, including Best Buy (BBY), Target (TGT), and Costco (COST), are struggling as the recession beats down their same-store sales. General retailers such as Sears (SHLD) are not faring any better. That means that the layoffs in the retail industry, which have already been extensive, are likely to continue, especially if the 2009 holiday season is weak.
Wal-Mart (WMT) is at the other end of the spectrum, by itself. The world’s largest retailer says it will add 22,000 jobs at its U.S. stores this year. That is down slightly from 2008, but in an economy that is forcing hundreds of thousands of people out of work each month, it is extremely impressive.
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Posted
May 22 2009, 05:16 PM
by
James Dlugosch
Rating:
Money Blog: Top Stocks Blog - MSN Money
Boy, these guys are good. Last December when Sears (SHLD) announced earnings, the company tried to sugarcoat significantly worse-than-expected results with an announcement of a stock buyback.
They've gotten clever again.
On Thursday, after the market closed, Sears announced earnings ahead of schedule. The news was positive, and management knew it would be received by the market. Reporting a profit excluding items of 38 cents per share was too good to wait to report.
More importantly, Sears had secured a line of credit for $2.4 billion that would immediately put to rest concerns about credit.
Sears indeed jumped way up at the open, ending Friday's trading up 10%. Can you say short squeeze?
But not so fast, buster. Before you celebrate the rise of a grand old name, recognize that Sears still has major problems.
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Posted
Mar 31 2009, 04:17 AM
by
Douglas McIntyre
Rating:
Money Blog: Top Stocks Blog - MSN Money
Toyota’s (TM) share of the U.S. light vehicle market is 18% and Honda’s (HMC) is 10%. General Motors (GM) claims about 22%. Fifty-five years ago, the No. 1 U.S. car company had 54% of the market. By this time next year, GM’s piece of the American car pie could drop another 50%, bringing it closer to Honda’s.
It seems improbable that GM could lose that many customers so fast. But Rick Wagoner, the recently departed chief executive of the company, told Congress in December that people won’t buy cars from a bankrupt company. Some at the hearings figured Wagoner was bluffing, trying to convince Washington that a Chapter 11 filing would end the firm’s ability to market products because customers could turn to cars made by competitors in reasonably good financial shape.
But most research done recently indicates that Wagoner was probably right, at least right enough that GM’s sales could be clobbered by consumers who believe that their warranties will be worthless and that their dealers will disappear.
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Posted
Dec 31 2008, 06:43 AM
by
Minyanville
Rating:
Money Blog: Top Stocks Blog - MSN Money
Goodbye, malls. Paltry sales at retailers have finally taken a toll on the buildings that house them, and many economists are predicting serious trouble ahead for mall owners.
According to an article on CNBC.com, “the dismal holiday shopping season… could take down some US malls struggling with vacancies, softening rents and their own large debt loads.”
Some mall staples, like KB Toys and Circuit City, have already filed for bankruptcy. The International Council of Shopping Centers estimates national chains closed approximately 6,100 stores in 2008, and fourth-quarter mall vacancy rates could top 7%, the highest since regional mall performance was first measured.
Moreover, anchor stores like Sears or Macy's, critical to a mall’s well-being, are suffering badly.
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Posted
Dec 01 2008, 12:30 AM
by
Andrew Horowitz
Rating:
Money Blog: Top Stocks Blog - MSN Money
 So far this season, we have seen a mixed bag of earnings. Earnings are light this week but several important economic indicators are coming out over the next few days.
While earnings and market news are both important, economic data is considered a general measure of our system's financial stability. Though many of these indicators are lagging, since they look back at the previous month, they can provide us a with good indication of where our economy may be heading.
Typically these numbers are issued monthly and the market will usually only react to substantial deviations from expectations. In fact, if investors have already priced in a disappointing outcome, the market may be muted following the data release. Here's what is coming out this week and what to expect
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