Macy’s Plummets 17% After Cutting Guidance As Retailers Tumble

A critical thinking person might wonder how retailers across the board, plus Apple, can be reporting shitty sales and profits if the average American is doing as well as Trump and the MSM keep touting. If unemployment is really 3.9%, wages are really rising by 3.2%, and credit card debt is at an all-time high, why aren’t consumers buying more shit they don’t need? If things are so fucking great, why are auto sales and home sales falling? Is it possible we are already in recession, and your government and MSM propaganda machine don’t want you to know the truth. The bullshit is so deep, you need to wear hip boots.

Via ZeroHedge

One week after Apple stock crashed when the company cut its revenue guidance for the first time in 16 years, today it’s the retailers fault to pull the rug from under investors when first Kohl’s then Macy’s slashed guidance following weak holiday spending, crushing the narrative of the “strong consumer.”

Continue reading “Macy’s Plummets 17% After Cutting Guidance As Retailers Tumble”

Why the Retail Apocalypse Has Only Just Begun…

Guest Post by Justin Spittler

One of the world’s most iconic retailers is on its deathbed.

Sears is one of America’s oldest companies. It opened its first store in 1886, five years before the zipper was invented.

The company later pioneered the mail-order catalog business. At one point, it was also the world’s biggest retailer.

Those were the good ol’ days. But they’re never coming back.

Just look at this chart. You can see that Sears Holdings Corp. (SHLD) has plunged more than 90% over the last decade. That’s a staggering decline.

Anyone could look at this chart and tell you Sears is finished.

Continue reading “Why the Retail Apocalypse Has Only Just Begun…”

WHAT THE HELL IS GOING ON?

“The older I grow, the more I distrust the familiar doctrine that age brings wisdom.” –  H.L. Mencken

 

“The older I get the less I listen to what people say and the more I look at what they do.”Andrew Carnegie

I’m 53 years old. The older I get the less sure I am about things I was sure about when I was 25 years old. I believed stocks for the long run was an unquestioned truth. I believed our economy was based on free market capitalism. I believed stock prices were based upon profits and cash flows. I believed a home was a place to live – not an investment. I believed the Catholic Church was run by good men doing good things. I believed journalists and the media were watchdogs working on behalf of the public. I believed our military was protecting our interests. I believed politicians legislated on behalf of the people. I believed the main purpose of bankers was to loan money to businesses and consumers in order to support economic growth. Boy, was I dumbass.

My skeptical nature, reliance on data I’ve personally vetted, and judging our leaders based on what they have done versus what they say, has allowed me to escape the Matrix. I wasn’t truly awakened until I watched Bush, Cheney, Powell, the rest of the neo-con prevaricators and fake news mainstream media utilize propaganda to railroad Americans into a $6 trillion unnecessary war, resulting in 36,000 American casualties, the destruction of a country and the creation of thousands of new Muslim terrorists.

Continue reading “WHAT THE HELL IS GOING ON?”

Macy’s, Kohl’s Crash After Reporting Abysmal Holiday Sales; Cut Guidance; Announce Mass Layoffs, Store Closures

One of my 2017 forecast predictions didn’t take long to be right. Shitty Christmas sales, retail implosion, store closings, and in a couple weeks a Sears bankruptcy announcement. Reality bites. Time to short mall developers as ghost malls are the wave of the future. Can Trump tweet that Macy’s can’t close the 68 stores and must continue to employ those 10,000 workers? 

Tyler Durden's picture

Remember when market cheerleaders said that holiday sales were expected to be far stronger than usual, if only as a result of the newly-discovered optimism from the Trump election? Well, at least when it comes to conventional retailers like Kohl’s and Macy’s… not so much.

First, it was Kohl’s, which announced it was slashing its full year forecast, and now sees FY2017 adjusted EPS of $3.60-$3.65, down from $3.80-$4.00 less than two months ago, in the day after the election (ronically). It wasn’t just the future: the company revealed that comp sales were also down 2.1% y/y in fiscal months November and December combined.

As Kohl’s CEO Kevin Mansell said, “sales were volatile throughout the holiday season. Strong sales on Black Friday and during the week before Christmas were offset by softness in early November and December.”  

But an even greater surprise was revealed moments later by retail belwether Macy’s, which not only reported a drop in same store sales, not only slashed guidance, but also announced it would close 68 stores and lay off over 10,000 workers.

Continue reading “Macy’s, Kohl’s Crash After Reporting Abysmal Holiday Sales; Cut Guidance; Announce Mass Layoffs, Store Closures”

Initial Jobless Claims Soar Most In 11 Years To 15-Month Highs

The last nail in the MSM narrative of economic recovery. Jobs are always a lagging indicator. The retailer results this week have been disastrous. Kohl’s and Macy’s shit the bed. Consumers aren’t spending money they don’t have anymore. All those Obama jobs barely pay the bills. Obamacare is bankrupting small businesses and using all those gas savings windfalls. Now companies are handing out pink slips at a rapid pace, while gas prices have surged by 30% in the last three months. Best time to buy stocks. Right?

Tyler Durden's picture

Macy’s Massacred After Slashing Outlook On “Uncertain Consumer” As Inventories Reach Record Highs

Wow!!

Who could have possibly seen this coming?

Oh Yeah. Me.

http://www.theburningplatform.com/2016/01/06/and-it-begins-2/

http://www.theburningplatform.com/2015/11/11/macys-imploding-catching-down-to-sears-penneys/

http://www.theburningplatform.com/2015/10/14/ignore-the-media-bullsht-retail-implosion-proves-we-are-in-recession/

http://www.theburningplatform.com/2015/08/15/department-store-results-imploding/

http://www.theburningplatform.com/2015/06/14/consumers-not-following-orders/

http://www.theburningplatform.com/2014/09/13/kohls-the-rest-of-the-retailers-are-in-deep-doo-doo/

http://www.theburningplatform.com/2014/05/25/retail-death-rattle-grows-louder/

http://www.theburningplatform.com/2014/04/15/why-retailers-are-closing-thousands-of-stores-summarized-in-one-chart/

 

Tyler Durden's picture

The retailer apocalypse continues this morning with Macy’s crashing almost 10% in the pre-market after missing top-line and slashing its outlook citing the “uncertain direction of consumer spending,” which seems odd given the confidence with which The Fed, Obama, and every talking head proclaims the US consumer’s health. Comp store sales plunged 6.1% (almost double expectations) and this comes at a time when clothing inventories are at an all-time record high relative to sales.

“We are seeing continued weakness in consumer spending levels for apparel and related categories. In particular, our sales trend relative to expectations meaningfully slowed beginning in mid-March, and first quarter results are below our original outlook. Headwinds also are coming from a second consecutive year of double-digit spending reductions by international visitors in major tourist markets where Macy’s and Bloomingdale’s are key destinations, as well as a slowdown in some center core categories – further intensifying the challenges associated with growing topline sales revenue,” said Terry J. Lundgren, Macy’s, Inc. chairman and chief executive officer.

Continue reading “Macy’s Massacred After Slashing Outlook On “Uncertain Consumer” As Inventories Reach Record Highs”

Malinvestment In US Malls—-800 Department Stores Or One Fifth Of Capacity Now Uneconomic

Oh look. The MSM is now writing stories I already wrote four years ago. They are really adding value.

 

By Suzanne Kapner at The Wall Street Journal

Department stores need to close hundreds of locations if they want to regain the productivity they had a decade ago, according to new research from Green Street Advisors.

The real-estate research firm estimates that the closures could include roughly 800 department stores, or about a fifth of all anchor space in U.S. malls.

Sears Holdings Corp. alone would need to close 300, or 43%, of its Sears stores to regain the sales per square foot it had in 2006, adjusted for inflation, according to Green Street.

“Department stores used to be a great catchall for different brands, but today many of the brands have stores of their own, and shoppers can also find them online,” said DJ Busch, a senior Green Street analyst.

Sears and other retailers including Macy’s Inc. and J.C. Penney Co. have closed hundreds of stores in recent years as business has shifted to discounters or online merchants likeAmazon.com Inc. But the closures haven’t been enough to offset a drop in sales, Green Street said.

MOTHER OF THE YEAR NOMINEE

At least the kid has a nice stolen jacket and backpack. The kid is clearly a high performer, as Philly “youths” usually don’t know their address until they are 12 or 13 years old.

Police issue warrant for suspected shoplifter who left child behind

PHILADELPHIA (WTXF)- Police have now issued an arrest warrant for a mother they say left 4-year old daughter behind at Macy’s after a $1500 shoplifting spree.

Central Detectives has obtained an Arrest Warrant for 27-year-old Mahogany Ashly Terry.

Philadelphia police were left stunned following the theft incident in Center City on the evening of February 11.

Only FOX 29 was there when a 4-year-old girl left Macy’s just before 8 p.m She wasn’t with her mom. She was with a police officer after investigators say her mom left her behind when she got caught shoplifting.

Police arrived at Macy’s just after 6 p.m. when store security grabbed the little girl’s 27-year-old mother.

Authorities say she tried to leave Macy’s through the exit to Chestnut Street with over $1,500 worth of merchandise.

Police tell FOX 29 the mother, her daughter and the stolen merchandise were taken to the store security office.

As security staff checked in and began removing the stolen merchandise from the mother’s belongings, she took off and left her little girl behind, police say.

Officers raced to the scene trying to locate the mother. Investigators arrived and spoke with the little girl who was able to tell them her name and where she lived. Police contacted family members and took the little girl to the Department of Human services Headquarters to be reunited with her grandmother.

Police say the little girl kept asking why her mommy left her behind.

THE GREAT CORPORATE EARNINGS FRAUD

“What are the odds that people will make smart decisions about money if they don’t need to make smart decisions–if they can get rich making dumb decisions? The incentives on Wall Street were all wrong; they’re still all wrong.” Michael Lewis, The Big Short: Inside the Doomsday Machine

Corporate earnings reports for the fourth quarter are pretty much in the books. The deception, falsification, accounting manipulation, and propaganda utilized by mega-corporations and their compliant corporate media mouthpieces has been outrageously blatant. It reeks of desperation as the Wall Street shysters attempt to extract the last dollar from their muppet clients before this house of cards collapses.

The CEOs of these mega-corporations accelerated their debt financed stock buybacks in 2015 as stock prices reached all-time highs and are currently so overvalued, they will deliver 0% returns over the next decade. This disgraceful act of pure greed by the Ivy League educated leaders of corporate America to boost their own stock based compensation is reckless and absurd.

It is proof education at our most prestigious universities has produced avaricious MBAs following financial models and each other like lemmings going over the cliff. Proof of their foolishness is self evident after perusing the chart below. These intellectual giants evidently never learned the basic rule of buying low and selling high in order to make a profitable trade.

Continue reading “THE GREAT CORPORATE EARNINGS FRAUD”

DERANGED CENTRAL BANKERS BLOWING UP THE WORLD

It is now self-evident to any sentient being (excludes CNBC shills, Wall Street shyster economists, and Keynesian loving politicians) the mountainous level of unpayable global debt is about to crash down like an avalanche upon hundreds of millions of willfully ignorant citizens who trusted their politician leaders and the central bankers who created the debt out of thin air. McKinsey produced a report last year showing the world had added $57 trillion of debt between 2008 and the 2nd quarter of 2014, with global debt to GDP reaching 286%.

The global economy has only deteriorated since mid-2014, with politicians and central bankers accelerating the issuance of debt. These deranged psychopaths have added in excess of $70 trillion of debt in the last eight years, a 50% increase. With $142 trillion of global debt enough to collapse the global economy in 2008, only a lunatic would implement a “solution” that increased global debt to $212 trillion over the next seven years thinking that would solve a problem created by too much debt.

Continue reading “DERANGED CENTRAL BANKERS BLOWING UP THE WORLD”

AND IT BEGINS

Last year it was the polar vortex that caused retail sales to be terrible at Christmas. This year it was too warm. How come it can never be just right? What a load of bullshit. If Macys really believed their bad sales was due to warm weather, why the fuck would they announce the closing of 36 more stores and the firing of 3,000 more employees? Who does that because of weather?

This is just the beginning. It is only January 6. Over the next month dozens of retailers will report atrocious results. Some might report positive sales, but they needed to slash prices to achieve any sales gains. Profits will be non-existent. Sears, JC Penny, and numerous other bricks and mortar retailers will announce the closings of hundreds more stores. There will be 5 to 10 retail bankruptcies in the next few months. Ghost malls will become spookier.

This always happens when the economy is recovering. Right? The consumer doesn’t have a pot to piss in. They can’t handle a $500 emergency expenditure. They’re up to their eyeballs in auto, student loan and credit card debt. An economy built upon people buying shit they don’t need with money they don’t have has hit the wall. I wonder who could have foreseen the collapse of retail in America.

Oh yeah. That was me.

Macy’s cuts costs, and thousands of jobs

Published: Jan 6, 2016 4:45 p.m. ET

Macy’s Inc. on Wednesday reported a worse-than-expected holiday quarter and outlined plans to cut $400 million in annual costs by closing stores and cutting thousands of jobs.

Shares of Macy’s, down 44% over the past year through the close Wednesday, rose 3.4% to $37.38 in after-hours trading.

Macy’s, which called its 2015 performance “disappointing,” said it expects to cut about 3,000 associate jobs across its stores and implement a “voluntary separation opportunity” for about 165 senior executives. It also will cut 600 back-office jobs and eliminate 750 jobs by consolidating call centers.

Continue reading “AND IT BEGINS”

HOW MANY MORE RECESSION CONFIRMATIONS DO YOU NEED?

Despite the bogus BLS employment report last week (so the Fed could raise rates before the next financial crisis hits), all economic data confirms an economic recession. Corporate profits are falling, and their forecasts for next quarter are worse. Global trade is slowing dramatically. Oil prices and other commodities are plummeting to multi-year lows. Manufacturing and Services surveys are flashing red. China, Japan and European economies continue to suck wind. Layoff announcements by major corporations are up 40% over last year. A global deflationary recession is underway. Only a CNBC bimbo, shill or Ivy League educated economist isn’t bright enough to see it.

Retail sales came out this morning and they were worse than dreadful. They confirmed the horrific quarterly reports from Macy’s, Nordstrom’s, and Kohl’s. Total retail sales grew a minuscule 0.1% from September and only 1.7% versus last year. It’s even worse than it looks. When you back out the subprime auto loan spurred auto sales (long term rentals), retail sales grew only 0.5% over last year. That is far less than true inflation, so on a real basis retail sales are FALLING like a rock. This only happens during recessions. And it isn’t a one month thing. Retail sales, even including loan boosted auto sales, are flat over the last three months and up only 2.1% for the first 10 months of the year.

http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2015/11-overflow/retail%20sales%20November.jpg

The decline in gasoline sales due to plunging prices has contributed to the lousy retail sales numbers, but the storyline of the economic bulls was how this was going to boost the spending of consumers across the board. That storyline is as dead as an Obamacare patient. It seems all the gasoline savings immediately went to pay for the soaring cost of Obamacare, even though the BLS says there is no healthcare inflation. There are a few areas that jump out at me and paint an even darker picture:

Continue reading “HOW MANY MORE RECESSION CONFIRMATIONS DO YOU NEED?”

MACY’S IMPLODING, CATCHING DOWN TO SEARS & PENNEY’S

About that resilient consumer and the tremendously low unemployment rate of 5%, maybe someone should tell Macy’s why their sales and profits continue to plummet. Their stock is down 13% today to a three year low of $40. It has fallen 45% in the last four months. It seems the market doesn’t like it when your sales fall 5.2% over last year and your profits crash by 46%. And this is after you close a bunch of your worst performing stores. I have a feeling they might be announcing the closure of another 100 stores after this upcoming disastrous Christmas season.

It was interesting that when I looked for their earnings announcement link on Marketwatch, it was no where to be found. So I went to their website, and now I know why they don’t want the results too widely viewed. It’s much worse than the headlines reveal. When you examine their balance sheet and cash flow statement, you see the looming disaster on the horizon. The executives running this retail titanic might be the dumbest fuckers on earth.

Let’s examine their brilliant strategic moves:

Continue reading “MACY’S IMPLODING, CATCHING DOWN TO SEARS & PENNEY’S”

DEPARTMENT STORE RESULTS IMPLODING

The government issued their monthly retail sales this past week and four of the biggest department store chains in the country announced their quarterly results. The year over year retail sales increase of 2.4% is pitifully low in an economy that is supposedly in its sixth year of economic growth with a reported unemployment rate of only 5.3%. If all of these jobs have been created, why aren’t retail sales booming?

The year to date numbers are even worse than the year over year numbers. With consumer spending accounting for 70% of our GDP and real inflation running north of 5%, it’s pretty clear most Americans are experiencing a recession, despite the propaganda data circulated by the government and Fed. The only people not experiencing a recession are corporate executives enriching themselves through stock buybacks, Wall Street bankers using free Fed Bucks while rigging the the markets in their favor, politicians and government bureaucrats reaping their bribes from billionaire oligarchs, and the media toadies who dispense the Deep State approved propaganda to keep the ignorant masses dazed, confused, and endlessly distracted by Cecil the Lion, Bruce/Caitlyn Jenner, Ferguson, and blood coming out of whatever.

You won’t hear CNBC, Bloomberg, the Wall Street Journal or any corporate mainstream media outlet reference the fact retail sales growth is at the exact same levels as when recession hit in 2008 and 2001. Their job is to regurgitate the message of economic recovery and confidence in the future, despite overwhelming evidence to the contrary.

Retail sales are actually far worse than the 2.4% reported number. Excluding the subprime debt fueled auto sales, retail sales only grew by 1.3% in the last year. The automakers are practically giving vehicles away as their lots are stuffed with inventory. The length of auto loans and the average amount of auto loans are now at all-time highs. The percentage of subprime auto loans is surging to record levels, as defaults begin to rise. The percentage of vehicles being leased is also at an all-time high. To call these “auto sales” strains credibility. These people are either perpetually renting their vehicles or just driving them until the repo man shows up.

Continue reading “DEPARTMENT STORE RESULTS IMPLODING”

TWO RETAILERS DOWN, WET SEAL & RADIOSHACK CLOSE BEHIND

Delia’s and Deb Shops filed for bankruptcy in December. That’s 438 more vacant storefronts across America. Now Wet Seal will close at least 338 more stores, and likely all 500 when they file for bankruptcy in the next couple weeks. Then the biggie. RadioShack will end up closing 5,000 locations when they file for bankruptcy in the very near future. Once the financial results are reported in February for all the major retailers you will see announcements from Sears, JC Penney, Macys and many others closing hundreds or thousands of more stores. Sure sounds like a consumer driven economic recovery.

Wet Seal may be too late to stave off bankruptcy

Published: Jan 7, 2015 12:16 p.m. ET

Teen retailer is closing most of its stores and laying off staff

 

NEW YORK (MarketWatch)—Teen retailer Wet Seal Inc. said Wednesday it is shutting two-thirds of its stores as it races to shore up liquidity and keep its operations afloat. But it may be too late to avoid the fate of former rivals Delia’s and Deb Shops, which filed for bankruptcy protection in December.

Already, a lender on some of the company’s senior convertible notes has issued a default notice with a deadline of Jan. 12. Unless Wet Seal meets its obligations or strikes a new agreement, the company is facing bankruptcy, said former bankruptcy attorney David Tawil of hedge fund Maglan Capital.

Wet Seal

 

“I don’t think that there is a good chance (of it surviving) unless there is a trick up someone’s sleeve that we haven’t seen yet,” Tawil told MarketWatch. “It has been a long time coming.”

Wet Seal didn’t respond to a request seeking comment.

Wet Seal said the store closings came after it failed to get concessions from its landlords. The retailer, once a destination for teen and college girls, has lost sales to other fast-fashion players such as Forever 21 and H&M.

The teen sector has generally underperformed the broader retail segment, and other companies including Aéropostale Inc. ARO, +2.23% and Pacific Sunwear PSUN, +4.55%  also are expected to shut stores this year. The sector is battling the trend in which teens are shifting spending to electronics and other items over fashion.

Read: here are some fashion stocks to buy and to avoid in 2015.

Wet Seal CEO Ed Thomas, who returned in September after heading the company from 2007 to 2011, has admitted the company has gotten “off-track,” skewing toward a younger customer with too much basic merchandise.

Thomas has promised to return the chain to “a fast-fashion model with emphasis on fashion product” that provides “constant newness.” The company will focus on fashion assortments over basics and define its target customer as 18-24-year-old women.

But that may be too late. Wet Seal has lost money in eight of the past 10 quarters, and is expected to lose money the next two quarters, according to Retail Metrics. Its comparable sales dropped 11 of the past 13 quarters. Holiday-quarter sales are expected to slump another 9.7%, after a 14.% drop in the third quarter, Retail Metrics data showed. Cash and cash equivalents tumbled 37% to $19.1 million as of Nov. 1 from a year earlier.

Some employees on Wednesday posted signs in store windows, with the hashtag #forgetwetseal, complaining that the company didn’t give them any prior notice of the closures and they weren’t paid for unused vacation and sick time.

“It’s possible but very unlikely” it will survive, said Retail Metrics President Ken Perkins.

It will be an uphill battle, he said.