Seeking Alpha
 

Consumer Discretionary Select Sector SPDR ETF (XLY)

- NYSEARCA
  • Jan. 16, 2014, 1:12 PM
    • Retail ETFs continue to under-perform market indexes for the year as the hits keep coming in the sector. Today's dismantling of Best Buy follows up a relentless string of guidance cuts from apparel sellers and department store chains.
    • Though many companies are taking advantage of their vibrant e-commerce channels, in most cases it's not enough to make up for soft store traffic.
    • Weakness at malls in particular is a risk for the group. In that vein, five of the top ten holdings (FRAN, ANF, M, FINL, CAB) of the S&P Retail ETF (XRT) are companies that frequently set up shop at or near malls.
    • Related ETFs: XLY, VCR, IPD, RTH, RETL, FXD, RXI, PMR, FDIS, RCD, PEZ, PSCD, AXDI
    | Comment!
  • Jan. 14, 2014, 10:34 AM
    • The National Retail Federation reports holiday sales rose 3.8% Y/Y to $601.B to fall just short of the forecast for a 3.9% gain.
    • If the 3.8% rise doesn't jibe with the rash of sales warnings piling up in the retail sector, it's due in part to the reliance of the industry on promotions and e-commerce channels this year to pick up the slack from soft store traffic. For the most part, margins suffered mightily this holiday season.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, IYC, FXD, SCC, UCC, PMR, FDIS, UGE, RCD, PEZ, SZK, PSCD
    | Comment!
  • Jan. 13, 2014, 3:13 PM
    • Retail ETFs are getting harder hit than the market as a whole as a slew of profit and sales warnings pile up with the XCR XChange Conference in full swing.
    • While data reads showing weak store traffic and heavy promotions in the sector during the holiday shopping season have been out for a few weeks, there have also been a few surprises on the low-end with discounters and with high-end apparel sellers which has chipped away at trust in Q1 retail sales.
    • What to watch: A report of December retail sales is due out tomorrow. To take a pulse on the sector, back out automobiles, housing-related purchases, and furniture to see what kind of growth rate survives. The number could come in flat.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, PMR, FDIS, RCD, PEZ, PSCD
    | Comment!
  • Jan. 12, 2014, 2:10 AM
    • Major retailers other than Target (TGT) were the victims of cyber-attacks on customer credit card data during the holiday season, with Reuters reporting that hackers breached at least three well-known chains using methods similar to those used on Target.
    • However, as is often the way in the sector, the companies involved have yet to disclose the assaults.
    • The attacks are in addition to one on Neiman Marcus. The luxury retailer said on Friday that it is looking into the theft of data from customer payment cards, although the luxury department store doesn't know how many people have been affected.
    • Gartner analyst Avivah Litan says she learned about a separate series of beaches going back to a few months before Thanksgiving. These could have been used as trial runs for the big assault on Target, which said on Friday that the data of up to 70M people may have been stolen, not the 40M that was previously disclosed.
    • ETFs: XLY, XRT, VCR, RTH, RETL, PEJ, IYK, FXD, PMR, FDIS, UGE, RCD, PEZ, SZK, PSCD
    | 19 Comments
  • Jan. 9, 2014, 3:13 PM
    • Though the economy might pick up this year and provide a little more spending cash for consumers, analysts warn that retailers will face the tricky task of reversing the dependence of shoppers on deals and promotions.
    • A younger generation of consumers is growing up shopping empowered by their mobile devices and deal sites such as RetailMeNot.com (SALE).
    • Deloitte's Alison Paul thinks brands which come up with a must-have product or can differentiate themselves will be the ones to emerge from the promotional setting.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, IYC, FXD, SCC, UCC, PMR, FDIS, UGE, RCD, PEZ, PSCD, SZK
    | Comment!
  • Jan. 9, 2014, 8:26 AM
    • After the S&P Retail ETF (XRT) rose 36% last year some analysts are openly wondering if it's time for investors to pay the piper as negative momentum in the sector picks up even more steam.
    • SW Retail Advisors' Stacey Widlitz thinks that judgement day might be here after taking in the early round of disappointing reports on holiday sales from the retailer group. The final straw could be a disappointing read on the dollar store group which was forecast to be a resilient trade-down bet.
    • Related ETFs: XLY, VCR, RTH, RETL, FXD, PMR, FDIS, RCD, PEZ, PSCD.
    | Comment!
  • Jan. 8, 2014, 9:59 AM
    | Comment!
  • Jan. 7, 2014, 8:12 AM
    • A brutal weekly reading on store sales from ICSC-Goldman is directly attributable to winter storms and "statistical noise" from the end of the year.
    • Sales fell over 5% on the year-over-year comparison.
    • The research firm notes that the frigid weather has cut across retail except for grocery stores (KR, SVU, SWY, DEG, IMKTA) and online sellers (OSTK, NILE, BIDZ, AMZN) which saw sales levels hold up during the week.
    • Family dining restaurants (CAKE, RRGB, IRG, DIN, DENN, CBRL) saw traffic slow to a crawl due to the winter weather slam.
    • Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, PMR, FDIS, RCD, PEZ, PSCD
    | 1 Comment
  • Jan. 6, 2014, 8:58 AM
    • Winter storms which dumped over ten inches of snow in a large number of U.S. cities (Boston, Chicago, Detroit, St. Louis, NYC region) has wreaked havoc on mall traffic, according to retail watchers.
    • In some major cities, malls were completely closed down due to the extreme snow.
    • The extended bout of wintry weather hit right as the sector was looking for a bounce from post-holiday deal shoppers and gift card conversions.
    • Analysts think most of the anticipated sales will be recouped, although a lag factor could in play. Apparel sellers could be the hardest hit as inventory starts to look stale.
    • On watch: AEO, ANF, ARO, JCP, JWN, KSS, URBN, APP, TLYS, GES, BKE, CHS, ASNA, CWTR, ANN, CBK, NWY, CACH, BODY, WTSL, CATO, BEBE, DDS, LB, PSUN, EXPR, DDS, M, GPS, SHLD.
    • Related ETFs: XLY, VCR, FXD, FDIS, RCD, PEZ, PSCD
    | Comment!
  • Dec. 27, 2013, 7:32 AM
    • Holiday sales rose this year by 2.3% to easily top last year's 0.7% rise, according to fresh data from MasterCard Advisors. The mark falls short of the early projections from ShopperTrak and the NRF.
    • Jewelry (ZLC, SIG, NILE, TIF) and children's clothing were two categories that showed strong gains.
    • The shift to online channels was pronounced this year with mall traffic slow.  Online sales for the holiday season were up at a double-digit pace, but also fell short of some forecasts.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, ECON, IPD, KXI, BJK, RTH, PBJ, RETL, PEJ, IYK, FXG, IPS, IYC, SCC, FXD, RXI, UCC, RHS, PMR, UGE, EMCG, FDIS, RCD, PSL, FSTA, PSCC, SZK, PEZ, PSCD, EMDI, AXDI, AXSL
    | 2 Comments
  • Dec. 23, 2013, 3:55 AM
    • The number of transactions at Target (TGT) stores slid 3-4% at the weekend compared with the same pre-Christmas period last year, retail consultancy Customer Growth Partners estimates.
    • The fall comes after Target disclosed that hackers accessed the information on up to 40M payment cards between Nov. 27 and Dec. 15 by infiltrating swipe machines at checkout counters.
    • The drop may be part of an overall trend: RetailNext estimates that sales fell by a mid-single-digit percentage at brick-and-mortar stores on Friday and Saturday, although that doesn't include online sales. Store visits tumbled 7%. In response, retailers have been offering heavy discounts in order to lure shoppers.
    • ETFs: XLP, XLY, VDC, XRT, VCR, RTH, PBJ, RETL, PEJ, IYK, FXG, IYC, SCC, FXD, UCC, RHS, PMR, UGE, RCD, FDIS, PSL, FSTA, PSCC, SZK, PEZ,
    | 4 Comments
  • Dec. 22, 2013, 5:30 AM
    • With Christmas fast approaching but shoppers not so care free with their cash for a variety of reasons, retailers have been slashing their prices to lure them in.
    • Discounts are "35-40% if you are doing well. And it's 50% if you are feeling the heat," says analyst Stacey Widlitz.
    • However, even a late surge of consumers may not make it a great holiday shopping period for retailers. "There will be a massive last minute rush, the biggest surge in history," says one senior retailer. But "it ain't going to rescue anything."
    • And not everyone is convinced that the endless bargains are healthy for shops. Constant discounting is "like a drug. You need a higher dose each time you do it, and you need a shorter period of time (in between)," says Anthony Thompson, CEO of British retailer Fat Face.
    • ETFs: XLP, XLY, VDC, XRT, VCR, RTH, PBJ, RETL, PEJ, IYK, FXG, IYC, SCC, FXD, UCC, RHS, PMR, UGE, RCD, FDIS, PSL, FSTA, PSCC, SZK, PEZ, PSCD
    | Comment!
  • Dec. 18, 2013, 10:27 AM
    • A survey from Shop.org indicates that 84.2% of retailers have a standard shipping deadline for guaranteed Christmas that lands before Friday, December 20. The timing of Christmas this year (mid-week) played a factor in the drop-dead date for late shoppers.
    • An interesting side-note from the data was that 21% of retailers polled say they increased their promotion of free shipping with no conditions this year. It's another sign that although late-season sales might come in after all for retailers, margins could be razor-thin.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, ECON, IPD, KXI, BJK, RTH, PBJ, RETL, PEJ, IYK, IPS, FXG, IYC, SCC, FXD, RXI, RHS, UCC, PMR, UGE, EMCG, RCD, PSL, FDIS, FSTA, PSCC, SZK, PEZ, PSCD, EMDI, AXSL, AXDI
    | Comment!
  • Dec. 17, 2013, 2:38 PM
    • ShopperTrak reports retail sales fell 0.8% Y/Y last week on traffic that was almost 20% thinner as the shoppers that did venture out were all business.
    • The retail-watching group says the wintry weather mix was a big factor and predicts a decent snap back in traffic this week.
    • The opposite effect could be in play with Amazon (AMZN) and eBay (EBAY -0.9%). The e-commerce tracking data for the two companies continues to dazzle as the typical post-Cyber Monday lull has been avoided. If there is a minor dip, analysts think it could be this week with decelerating Y/Y sales growth from the pair's dizzying pace.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, ECON, IPD, KXI, BJK, RTH, PBJ, RETL, PEJ, IYK, IPS, FXG, IYC, SCC, FXD, RXI, RHS, UCC, PMR, UGE, EMCG, RCD, PSL, FDIS, FSTA, PSCC, SZK, PEZ, PSCD, EMDI, AXSL, AXDI
    | Comment!
  • Dec. 12, 2013, 7:58 AM
    • The outlook for the retail industry hasn't brightened over the last 24 hours.
    • ShopperTrak's tally of post-Cyber Monday traffic came in shockingly low while Vera Bradley and Lululemon have both reported weaker-than-expected guidance for Q4 despite having strong brands.
    • Some analysts think the crowding-out impact of higher spending on automobiles and housing is a larger factor than expected for the soft store traffic and sales. Others warn of a consumer paradigm shift where promotion and deal hunting via mobile is starting to take over. The latter will be hard to reel back.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, PBJ, RETL, PEJ, IYK, FXG, IYC, SCC, FXD, RHS, UCC, PMR, UGE, RCD, PSL, PSCC, SZK, FDIS, FSTA, PSCD, PEZ.
    | Comment!
  • Dec. 11, 2013, 1:37 PM
    • Brick-and-mortar retail sales fell 2.9% Y/Y for the week following Black Friday, according to ShopperTrak.
    • The mark is less than impressive with the compact holiday shopping season supposed to make the comparable to last year a bit easier. Even worse, the consumer research firm reports a 21.6% drop in retail shopper traffic for the week of December 2 to December 8.
    • Though post-Cyber Monday letdown, wintry weather, and an early Hanukkah played a factor in the poor retail sales week - forward momentum appears lacking with only two weeks left before Christmas.
    • Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, PBJ, RETL, PEJ, IYK, FXG, IYC, SCC, FXD, RHS, UCC, PMR, UGE, RCD, PSL, PSCC, SZK, FDIS, FSTA, PSCD, PEZ.
    | 4 Comments
Visit Seeking Alpha's
XLY vs. ETF Alternatives
XLY Description
The Consumer Discretionary Select Sector SPDR® Fund, before expenses, seeks to closely match the returns and characteristics of the Consumer Discretionary Select Sector Index. Our approach is designed to provide portfolios with low portfolio turnover, accurate tracking, and lower costs.
See more details on sponsor's website
Sector: Services
Country: United States
ETF Hub
Find the right ETFs for your portfolio: Visit Seeking Alpha's ETF Hub