This country is completely dependent upon delusional consumers spending money they don’t have on shit they don’t need. It’s financed by a criminal banking cabal, with the debt payments made from a dwindling level of real household income. With over 102 million working age Americans not working, unemployment compensation declining, food stamp payouts being reduced, and Grandma Yellen curtailing the easy money heroine to her owners, we’ve got ourselves a perfect storm brewing. Retailers, restaurants, and every company dependent upon consumers to consume are shocked at the collapse in their sales. It seems the non-existent and shit service jobs aren’t paying enough to service credit card debt payments, so consumers are being forced to not spend. They prefer to keep the utilities on.
There is a reason the greatest stock market collapses in history have happened in October. Companies finally admit that they are not going to hit their profit numbers because the year is running out. All the lies, misinformation, propaganda and forecasts are revealed to be a sham.
The five profit warnings below all happened this morning. There are many more to come.
Consumers can’t spend money they don’t have. So they aren’t. look out below.
The Container Store slumps after it lowers forecast
NEW YORK (MarketWatch) — The Container Store Inc. TCS, -3.86% shares slumped 11% in after-hours trading Monday after the storage organization retailer lowered its profit and sales outlook. Adjusted profit for the year is expected to be 41 cents to 46 cents a share, versus its prior guidance of profit of as much as 54 cents a share. The retailer sees sales of as much as $810 million, lower than its previous forecast of sales of as much as $830 million. It also lowered its comparable sales outlook. The company reported a second-quarter profit of $6.96 million, or 14 cents a share, from a loss of $17.7 million, or $6.06 a share, a year earlier. On an adjusted basis, the company said profit was 11 cents a share, matching analysts’ consensus estimate. Second-quarter sales of $193.2 million, however, missed Wall Street expectations
SodaStream warns of revenue shortfall as U.S. performance disappoints
NEW YORK (MarketWatch) — SodaStream International Ltd. SODA, -4.60% on Tuesday warned that its third-quarter revenue would fall far short of estimates, weighed down by a slump in demand in the United States. “We are very disappointed in our recent performance,” Chief Executive Daniel Birnbaum said in a statement. “Our U.S. business underperformed due to lower-than-expected demand for our soda makers and flavors which was the primary driver of the overall shortfall in the third quarter.” The Israeli drinks company said the results “are a clear indication that we must alter our course.” The company has started to shift its brand toward health and fitness, especially in the U.S. The company now expects revenue for the quarter of about $125 million, well below the FactSet consensus of $153.6 million. The company is expecting operating income of about $8.5 million. SodaStream is scheduled to report third-quarter earnings on Oct. 29. Shares were halted until 8.00 a.m. Eastern , but are down 44% in the year to date, while the S&P 500 has gained 6.3%.
Christopher & Banks warns of quarterly sales shortfall
NEW YORK (MarketWatch) — Women’s apparel retailer Christopher & Banks Corp.’s shares CBK, -2.88% slumped 12% in premarket trade, after the company warned that third-quarter sales would fall below estimates, due to soft mall traffic, weak demand and the fallout from the West Coast port disruption. The company said it now expects sales for the quarter to range from $114 million to $118 million, below the FactSet consensus of $124 million. Margins are expected to show less improvement than previously announced. “We are operating our business with the assumption that the current environment will remain challenging and promotional activity will continue to be aggressive, creating continued pressure on sales and margins,” Chief Executive LuAnn Via said in a statement. The company has seen some recent improvement in the sales of fashion merchandise and is focused on managing costs, she said. Shares were up 6.6% in the year through Monday’s close, while the S&P 500 has gained 6.3%.
Agco shares tumble after lowered profit outlook
NEW YORK (MarketWatch) — Shares of Agco AGCO, +1.42% tumbled 7.6% in premarket trade Tuesday, after the agricultural equipment company cut its profit outlook for the year because of weaker-than-expected demand. Agco cut its full-year outlook to $4.10 to $4.30 a share from a previous target of $5 a share. The revised outlook includes restructuring and other expenses. Agco expects third-quarter per-share earnings of 60 to 65 cents, which also includes a 15-cent benefit for reversing previously recorded long-term stock compensation expense. “During the third quarter, we experienced weaker than anticipated levels of demand and are responding by making more aggressive cuts in production schedules and expenses,” said Chief Executive Martin Richenhagen. The stock has gained 4% since closing at a near two-year low of $45.31 on Oct. 1 through Monday, but was still down 20% year to date, compared with a 6.3% gain in the S&P 500.
Samsung Electronics third-quarter profits plunge
SEOUL– Samsung Electronics Co. estimated its third-quarter operating profit more than halved from a year earlier, hit by weak smartphone sales, leaving the company little choice but to rely more on its chip business to drive future earnings growth.
As stiff competition from Chinese vendors continues to pressure its mobile division profits–it derives more than 60 % of its profit from the sale of mobile phones–investors have sold off Samsung shares on concerns about its outlook.
The world’s largest smartphone maker by shipments said Tuesday its third-quarter operating profit likely fell 57.8% to 61.8% from a year earlier to between 3.9 trillion won ($3.6 billion) and 4.3 trillion won. A year earlier, Samsung reported an operating profit of 10.2 trillion won. A poll of seven analysts indicated Samsung’s operating profit would come in at 4.3 trillion won.
Expectations for the quarter have already been low as sales of Samsung’s flagship device, the Galaxy S5 have been weaker than expected and the company only began to sell its new smartphone-tablet hybrid, the Galaxy Note 4, in recent weeks.
The company doesn’t provide a breakdown of profit estimates by businesses. Actual results are due later this month.
Yet, those companies you listed are all viable businesses . Businesses that have weathered the storm of being start ups.
Capitalism is a profit and loss system. That requires entrepreneurship. Recessions are a normal part of a functioning system.
If there is no risk taking. Can there be a subsequent recovery and a subsequent recession that will assured follow from failed start ups?
Agco is not a consumer products company – they make farm equipment and related crop-handling equipment. A slowdown there is an indication that farmer demand is slowing down.
Who buys what the farmers produce?
Oh my, the very upper middle and elite aren’t buying as many gadgets for the home, and overpriced clothing. Outliers.
Agco is the result of commercial farms growing while mid-sized ones are run out of biz by one of the dozens of predatory regulators, insane laws like the Michigan Feral Pig Law, or the war on raw milk. Industries that go from many small and mostly medium sized, to giant agri-interests (or anything else, it has happened in multiple industries already), have but two goals: maximizing profits and minimizing costs. And Capex spending (so expansion and maintenance to continue on) has been on a decidedly downtrend sense the (slightly, as we will see) great reset. Again, outlying symptoms showing rot at the core.
Samsung is the canary. The underemployed millennials, and their overextended benefactors (parents and grandparents I imagine) have hit the reality of “free” healthcare.
I can tell you in the nut & bolt business, there is a marked downturn in activity. Little quoting, mostly niche and specialty. We always experience a slowdown right before national elections. Always (what a huge destruction of economy elections are). But this started much earlier, and just feels different. It’s hitting nearly all our customers and vendors across the way. The steel guys are calling all the time with specials and I would guess 10% of the time our phone rings it is from a salesguy.
The real economy is getting ready to fall off the cliff.
Keep believing this “downturn” is the same as all the rest Mark. The past 100 years have been an anomaly and we are getting ready to return to mean. We’ll overshoot mean by a long shot with the reality of our government easily controlling over 50% our economy. People just can’t understand that.
Everything we see/hear/are shown is bullshit, understated (with the exception of GDP), and lies.
There is NO returning to normal. We left normal before the days of being molested at the airports became the horrific norm.
I know you won’t believe me. That’s ok. All that matters to me is that I know what is coming. Good luck to you and yours.
If the economy was as bad as TE said, it would be a step up.
It is worse.
ECONMAN ,WHAT YOU KNOW ABOUT ECONOMICS:?HAVE EVER DID ANYHING BUT TEACH ? WHAT DID YOU DO AT DUMB FUCK UV?
@bb: ” DUMB FUCK UV”
It’s now known as “Clown College.” Use to call it “High School with Ash Trays.” But you can’t smoke anymore.
“Who buys what the farmers produce?”
Lots and lots of people, not just end users. Ethanol plants, exporters, livestock producers. Yeah, all of that eventually trickles down to the consumer, but it’s not the same as a company like Mallwart or piKEA that sells only to consumers as end-users.
JoS A. Bank:
Men’s suits- buy one get THREE free!!!!
Haven’t they noticed we’ve become a blue jeans and tee-shirts, sweatpants and sweatshirts, athletic gear-wearing people?!?
And the investment bankers probably don’t shop there.
Hahahahahahah!!!
@Admin you got it all wrong! 😉
http://www.reuters.com/article/2014/10/07/us-usa-retail-holidays-idUSKCN0HW1BV20141007
Everything is rosy and good! Retail sales will pick up this year. The U.S. economy could be shifting into a higher gear they say!!! It must be true!!
Hahahah…
Yum Brands profit, outlook miss estimates
By Andria Cheng
Published: Oct 7, 2014 4:31 p.m. ET
NEW YORK (MarketWatch) — Yum Brands Inc. YUM, -2.31% the parent of Kentucky Fried Chicken and Pizza Hut, said Tuesday that its third-quarter profit rose to $404 million, or 89 cents a share, from $152 million, or 33 cents, a year earlier. Total revenue fell 3% to $3.35 billion. Excluding one-time items, the company said it earned 87 cents a share. That missed the 88-cent average estimate of analysts surveyed by FactSet. Sales also missed estimates of $3.37 billion. Yum, whose China sales fell 9% after an issue with a meat supplier, said it’s difficult to forecast the exact trajectory of its sales there. It forecast 2014 per-share profit to rise between 6% and 10%. Analysts surveyed by FactSet were looking for profit to increase 13% for the year on a per-share basis. Yum, which closed down 2.3% in regular trading, dipped 0.6% after hours.
Stocks Continue Moving Lower On Weak Economy
US equities moved sharply lower today on weak economic news out of Germany, and jitters as we approach the US earnings season once again.
Consumer Credit expansion missed forecast in a big way, helping to encourage doubts about the ability of the working classes ability to sustain their consumption with stagnant wages and a weak household balance sheet.
This is not a sustainable recovery. It will keep going while the Fed keeps pumping money, like a car grinding its engine off a battery jump, but unable to fire on its own.
The reason? The financial system is draining all the fuel from the real economy, and the corporate profits are flowing largely into the already stuffed pockets of the one percent.
The Fed is supporting the Banks, and the public be damned.
It really is about that simple.
Jesse
TE: Couldn’t agree more. Our phones are cold and new business is D.O.A. Running on fumes here.
@Westcoaster, that sucks. Business has now slowed down enough that nearly every call in, from vendors to customers, it is noted.
And my health insurance broker mentioned they lost about 15-20% of their small biz accounts this year so far.
The future is so bright….