Tue, Jun. 28, 9:21 AM
Tue, Jun. 21, 9:27 AM
Tue, Jun. 14, 9:04 AM
Tue, Jun. 14, 8:49 AM
- Retail sales topped expectations in May with some categories tipping off a healthy spending trend.
- Nonstore retailers once again led all categories with 12% Y/Y growth. Amazon (NASDAQ:AMZN) had a lot to say with that strong performance.
- Health and personal care stores were also solid with an 8% Y/Y rise in sales. Chains such as Walgreens (NASDAQ:WBA), Rite Aid (NYSE:RAD), Ulta Salon (NASDAQ:ULTA), and Sally Beauty Holdings (NYSE:SBH) continue to draw millennial interest.
- Department stores lagged once again with a 0.9% M/M drop and 6% Y/Y tail-off. A tough month of weather contributed to a 2% M/M drop in the building materials and garden equipment (HD, LOW) category.
- Restaurants performed ahead of expectations, sales were up 0.8% M/M and 6.5% Y/Y. That mark bodes well for McDonald's (NYSE:MCD) continuing its streak of staying in positive territory with comparable-store sales.
- Previously: Retail sales decelerate from April's pace (June 14)
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, JHMC, CNDF.
Thu, Jun. 9, 12:23 PM
- Retail stocks are broadly lower after a weak earnings report from Restoration Hardware (RH -21.2%) set a gloomy tone. The S&P Retail ETF (NYSEARCA:XRT) is 1.91% lower on the day.
- Williams-Sonoma (WSM -4.8%) and Bed Bath & Beyond (BBBY -3.7%) are down sharply after the RH guidance dud.
- Mall chain and department store stocks are also seeing some anxious trading as investors continue to bet on discounters and variety stores which target budget shoppers.
- Notable decliners include Ascena Retail (ASNA -5.4%), Guess (GES -3.2%), Nordtrom (JWN -3.1%), Urban Outfitters (URBN -2.6%), Cato (CATO -2.6%), DSW (DSW -2.6%), and Gap (GPS -2%).
- Target (NYSE:TGT) is down 1.6% after a rough annual meeting where there was much more attention paid to the company's transgender bathroom policy than execs probably desired.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, JHMC, CNDF
Tue, Jun. 7, 9:09 AM
Wed, Jun. 1, 9:15 AM
Fri, May 27, 7:53 AM
- A strong Q1 report from Big Lots (NYSE:BIG) adds more confirmation that pockets of strength exist in retail at the right price points. After a rough start to the retail earnings season, Wal-Mart (NYSE:WMT) surprised last week on the upside and the dollar stores had their say yesterday
- Big Lots is already up 16% YTD, while Dollar General (NYSE:DG) is 22% higher and Dollar Tree (NASDAQ:DLTR) has gained 14%. Compares those audacious returns to the YTD slides of former mall chain standouts such as Gap (NYSE:GPS) -27%, L Brands (NYSE:LB) -30%, and Macy's (NYSE:M) -10% which are more in the direct line of fire of Amazon.
- In an interesting twist, it turns out those thrifty millennials who are MIA at malls are behind some of the strength in the discounter sector.
- Dollar General CEO Todd Vasos tipped on the company's earnings call (transcript) yesterday that millennials make up 12% of traffic and 24% of sales -marks that may have caught a few analysts by surprise.
- Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, CNDF
Tue, May 24, 9:17 AM
Thu, May 19, 9:51 AM
- Wal-Mart (NYSE:WMT) holds on to most of its post-earnings premarket gain with shares on track to have their biggest day since 2008.
- A couple of retail reads from Bentonville are that some of the concerns over labor wage increases may have been overblown. Wal-Mart has said often that with higher wages also comes improved efficiency which may have played out a bit in Q1. Shrink fell back and inventory was well-managed.
- Wal-Mart is also much more of a force in groceries than apparel which means that the trend toward tepid clothes buying by consumers doesn't hit it to the same degree as it does with Target (8% of sales vs. 19% at TGT via CNBC's Courtney Regan). As part of its prerecorded conference call, Wal-Mart announced it's adding 9 new markets to the grocery pickup program.
- On an even broader scale, Wal-Mart management didn't throw out any alarming adjectives to describe the U.S. consumer like some other chain stores execs. The tone is steadier and more confident on the full year.
- Retail ETFS are higher on the day after the Wal-Mart report.
- Wal-Mart prerecorded earnings call (no Q&A).
- Previously: Wal-Mart spikes after earnings top estimates (May 19)
- Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, RCD, PMR, UGE, SZK
Wed, May 18, 12:21 PM
- The Obama administration is officially announcing new rules on overtime pay in the U.S. later today.
- The threshold at which full-time employees can earn overtime pay will be lifted to $47,476 in annual wages per year from a prior level of $23,660.
- The Labor Department thinks over 4M American workers will be impacted by the change.
- Retail companies are expected to respond to the new OT rules by either raising compensation for employees just under the $47.5M mark or reducing some incentive payments. A switch to hourly wages with tighter schedules in some industries may be instituted, while some retail sectors will no choice but to swallow the extra labor costs.
- ETFs: IYC, SCC, UCC, BITE, XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR.
Wed, May 18, 9:15 AM
- Retail stocks are poised for some volatile action after Target warns on an "increasingly volatile" consumer in the U.S. Shares of Target were down as much as 9% off of disappointing Q1 numbers and guidance.
- Though the Commerce Department's read on April retail sales came in positive, Wolfe Research isn't so sure that major chains are getting the dollars anticipated.
- "The climate appears to have deteriorated to a certain degree across retail from late March and into April," says analyst Scott Mushkin.
- The biggest name in all of retail reports earnings tomorrow out of Arkansas. Shares of Wal-Mart (NYSE:WMT) are down 3.38% in premarket action with anxiety ratcheted up another notch.
- Costco (NASDAQ:COST) is down 2.65% in early action and J.C. Penney (NYSE:JCP) is off 1.4%.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, RCD, PEZ, PMR, UGE, SZK.
Tue, May 17, 10:07 AM
Tue, May 17, 9:18 AM
Sat, May 14, 11:01 AM
- The retail sector stays in focus next week with Target (NYSE:TGT), Wal-Mart (NYSE:WMT), TJX Companies (NYSE:TJX), and Ross Stores (NASDAQ:ROST) all due to report on Q1 earnings to follow on a week of dismal reports and guidance from the department store sector (Nordstrom, L Brands, Macy's, Kohl's). Home improvement chains Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) are also due to spill numbers.
- The story from the Commerce Department's April read of retail sales (+3.0% Y/Y, +1.3% M/M) is one of a consumer spending on housing, entertainment, and personal care/fitness over apparel and general merchandise. The 10% Y/Y gain in the nonstore retailer category also tipped that the Amazon (NASDAQ:AMZN) Effect is magnifying.
- Amplify ETFs CEO Christian Magoon tells Seeking Alpha that the traditional retail model appears to be broken. Amplify's Online Retail ETF (NASDAQ:IBUY) is a bet on companies such as Netflix (NASDAQ:NFLX), GrubHub (NYSE:GRUB), Blue Nile (NASDAQ:NILE), and Shopify (NYSE:SHOP) that are reeling in millennial dollars.
- Magoon on retail: "Traditional retailers face the headwinds of higher cost structures including the very real threat of increasing wages in the form of the $15 minimum wage campaign. Less flexible with inventory management, they also are more vulnerable to issues like weather and changing consumer preferences."
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE.
- Apparel stocks: KATE, ANN, LULU, PVH, VNCE, CRI, UA, HBI, VFC, COLM, GIL, SQBG, JCP, KSS, DDS, M, JWN, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, GIII, SQBG, HBI, VRA, ICON, SHOO, PERY, DXLG, BONT, GES, URBN, RL,GIL, NKE, OXM, HBI, VNCE, PERY, ICON, FL.
Fri, May 13, 8:54 AM
- Tongues are wagging over this mornings's fast April retail sales report, which comes amid a steady flow of weak earnings and lowered guidance from retailers like Macy's (NYSE:M), Kohl's (NYSE:KSS), and Nordstrom (NYSE:JWN), to name just three. So what's up?
- It turns out consumers are spending plenty, just not at traditional department stores, where sales are lower by 3% Y/Y through the year's first four months. In the meantime, sales at nonstore retailers are higher by 8.1%.
- Other areas of strength are building supplies up 9.7%, sporting goods up 7.4%, furniture up 5.6%, auto vehicle and parts up 4.5%, food services & bars up 7.4% (Shake Shack is ahead 5% this morning after strong results).
- Ten-year Treasury prices have given up their gains, with the yield now flat on the session at 1.745%.
- Consumer ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, RHS, FDIS, FSTA, RCD, PMR, UGE, SZK, BITE, IBUY
The PowerShares Retail Portfolio (Fund) is based on the Retail Intellidex Index (Index). The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors. Securities shown to possess the greatest capital appreciation potential are selected by the Index.
See more details on sponsor's website
See more details on sponsor's website
Country: United States
Other News & PR