Seeking Alpha

Ugly forecast from Family Dollar could resonate in sector

  • The dollar store group and related discounters could feel pressure today after Family Dollar chops down its forecast for 2014 profits considerably.
  • While Family Dollar had tobacco and food sales to provide some support, companies relying on a higher mix of apparel and merchandise are at risk.
  • Retail analysts note that Family Dollar has a tendency to aim too high with its guidance, so the carnage in the sector could be spotty with some companies already leaning to the conservative side.
  • On watch: DG, DLTR, FIVE, BIG, GMAN, SMRT, ALCS, ROST.
Comments (1)
  • harryjack
    , contributor
    Comments (473) | Send Message
     
    $FDO pulling down $FIVE is not logical as $FIVE is on totally different playing field relating to product mix, store expansion being in earlier phase, and $FIVE had strong seasonal product offerings for holidays. Financially, FIVE also much more conservative. $FIVE is a buy on the dip.
    9 Jan, 01:54 PM Reply Like
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