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.
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.”
After this website repeatedly warned that the massive inventory buildup that helped boost Q3 GDP was unsustainable and woulre resulted in major liquidations and matched earnings reduction, today Macy’s confirmed just that when the giant retailer cut its 2018 guidance, saying the company will continue to take necessary steps in January to “ensure a clean inventory position”. As a result, Macy’s now sees adjsuted year EPS $3.95 to $4.00, down from $4.10 to $4.30 previously.
Macy’s also reported that November and December owned comp sales were up 0.7%, also missing expectations.
As a result of the sales miss and guidance cut, Macy’s shares imploded in early trading, dropping as much as 17% premarket. This is what 16 years of buy and hold… and make no profits looks like.
Macy’s wasn’t alone. Because shortly after Target reported ok number, Kohl’s defecated all over the bed and its shares plunged 8% after the company reported Nov. and Dec. holiday-period comp sales rose 1.2% on a shifted basis, much lower than its prior year holiday sales growth of 6.9% and falling short of Wall Street est. of +1.5%, cut from +~2% on Jan. 4.
The abysmal numbers from M and KSS dragged down the entire department sector space with J.C. Penney and Nordstrom also falling in pre-market trading, and even Target was down after earlier reported holiday comps. up 5.7%, stronger than expected, as suddenly the narrative of the strong US consumer is once again on the rocks.
In light of these disappointing spending numbers, it is almost as if the market not only leads the economy, but a sliding market crushes US consumer spending intentions.
Do you wonder if 9 rate increases by TPTB since Trump was elected had anything to do with this unfortunate Economic accident? Do you wonder if the Democrat objection to The Wall has anything to do with Home Grown Communism? Do you suppose that BLM, Antifa, La Raza etc are sharpening their spears?
Party’s over, big retail.
Expanded to every mall in America when the booze and bucks were flowing fast & furious, but now?
With food, gasoline, cars, utilities, all insurance, particularly healthcare costs ALL skyrocketing,
not too many working stiffs have a couple hundy to go blow at Macy’s once a month.
The wimenz will still patronize, cuz they loves to spend their hard earned dohlahrs on another pair of shoes,
another outfit, or some expensive make up. Treating themselves makes ’em feel good.
The less affluent ones: headed to Kohls, or Tar-gzhey.
The freaks: Wally’s
Once again, it all leads back to the devaluation of the fiat, by stealth inflation, robbing us blind.
So, retail is suffering.
Rising interest rates are not the cause of retail’s demise, imho.
Savers and pensioners have been taking it in the ass ever since the price of credit’s been kept cheap.
For the last what, 15-20 years?
People and Corporations who owe too much, because they stretched too far, because rates were so low,
sorry, no sympathy here.
Should have only taken on what you can handle paying back, regardless of interest rate movement.
WTF happened to living within your means?
Surprise Surprise Surprise … really ? You mean the Wall Street to K-Street to Capitol Street circle jerk with their bought and paid for MSM have been spreading false information and lies by omission for not months but decades . As the likes of Mitt Romney gets a new chance and continuing to bankrupt pensions and jobs of middle Americans while babbling how he and his circle jerk friends saved jobs long enough to suck every dime out of a company before they slaughter it and the futures of middle working Americans . When they finished that and when everything these white collar criminals touch is laid to waste but their bank accounts they want to be thanked bailed out to do it again . With 100 MILLON would be working Americans idle the power of the circle jerk has overplayed this poker hand .
The industries are gone and the skilled people that made America great are out here willing and ready just not for part time work at $15 bucks an hour must have transportation so some government employee from school teacher to police fire and paper pushers retire in their mid 50’s while they go till they drop !
Jealous you say , how so ? If I use the states power to take what you earn for my self or use the courts to wipe out what you were assured under a legal binding contract and I walk away with a bonus what is going on here ??
Now tell me life is not fair ! No Shit “BUT” in this country American citizens are gaurenteed “EQUAL PROTECTION UNDER THE LAW”
My point here is to inform all such is no longer the case and that must end and reperations for all financially injured parties must be made whole !
I know fat chance , those who laid waste to this nations economy and profited from it read this and laugh till they wet their pants . This is because those in government that allowed this to happen with a wink and nod do not fear the American people and why should they ? They know we won’t do shit and will vote them back in office ! LMAO to early for bourbon !
It’s 5:00 somewhere…
@Boat
I’ve always enjoyed the way you rant.
+100
Sears / JC Penny / KMart / Macy’s / Sak’s 5th Ave closed their flagship store in Manhattan. All this retail is circling the drain.
The cost to build / furnish / utilities for a department store are huge. People have finally figured out that they are paying for all that. It’s much cheaper to have the same merchandise in a low cost building, in an industrial park, and have a web site.
Read this morning that Oracle just paid 350 million to have their name attached to what is now AT&T Park, home of the San Francisco Giants. My question: Why would I purchase stock in a corporation that pisses away 350 million dollars? I don’t get it.
I imagine it is a tax write off (advertising) so the American citizens get hosed in the process; at least those of us that pay any taxes do.
Multiple times over the last few months as I’ve been out and about, I’ve thought “hey I’ll stop there and see if they have X”. Every place I stop at thinking they might have X…they don’t. Their inventory is shit and everything I’ve considered buying, they don’t have on hand.
Stopped by Fry’s just the other day on my way back from the airport. Found a tablet that I thought about for some time. Stood in line for 15 minutes. About 30 people in line and 4 cashiers. Get to the cripple manning the station and he rings it up and it’s about $100 more than the price was on the shelf. He informs me I have to get a quote sheet from the people back in electronics. I go back and one guy is on the phone and no one else is around. After about 5 minutes, I throw the tablet back on the shelf and leave.
Retail wonders why amazon is eating their lunch.
I wear medium size clothes. I can’t tell you how many times (in the past) I’ve shopped for shirts, sweaters, etc – and all they had was large and x-large. Fuck these department stores. I can go on-line and they have all the sizes.
I kid you not, go buy shirts at Good Will or Salvation Army. Better yet, go to the best part of town and shop at the local thrift store.
I like what the Yellow Vests in France are going to do (apparently this Saturday), but they shouldn’t have announced it in advance.
They all plan on draining their bank accounts on Saturday to gauge the impact.
What a novel idea, they should NOT have given advance warning.
Tangent, ooops.
People can’t afford/don’t want trash and trinkets from communist china.
They can’t do it en mass without announcing it.
They should have done it on November 5th.
yeah….i guess so….you’re correct
Remember, remember,
the 5th of November,
The bank run,
Their treason and plot,
Make sure you always remember,
The 5th of November.
No one is protesting tyranny, but Americans insist that they are resisting the police state.
I personally prefer purchasing clothes in person, rather than on-line. I have found that nearly all of Macy’s men’s clothes (at least at the store near me), are geared towards the “metrosexual” crowd rather than the heterosexual male crowd. No problems at Kohl’s, Penny’s, or other retailers, so I know its not just the locale. Meet the needs of your customers or goodbye.
Plus, Macy’s clothing quality has seriously declined. The women’s department has clothes that seem more on par with Kmart. And who are their buyers? At Christmas, there were racks and racks of very fancy (read garish) party dresses. There are not enough parties in the world for all those dresses to be worn. No doubt, the economy is problematic but alot of their woes seem to be self-inflicted.
Buy from Walmart through the TBP link as often as possible.
Quite right, OTC! Support this site even if you
don’t send a check.
And Walmart (just like Amazon) has many small
business affiliates that sell through their web.
For other than extreme specialty items, the Walmart
site usually has much better prices, as well.