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U.S. Retailers Open on Thanksgiving: Desperate, or Smart?

By Money Morning Staff Reports, Money Morning - November 11, 2013

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U.S. Retailers Open on Thanksgiving: Desperate, or Smart?

By Money Morning Staff Reports, Money Morning - November 11, 2013

Best Buy Co. Inc. (NYSE: BBY) and Toys "R" Us Inc. are the two latest retailers to announce that they will open their doors on Thanksgiving. Other retailers like Target Corp. (NYSE: TGT) have expanded their "Black Friday" hours this year.

But does this tactic smack of desperation?

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The Weakest Holiday Sales Growth Since 2008 Means It's Time to Short These Retailers

By Keith Fitz-Gerald, Chief Investment Strategist, Money Map Report • @kfgtotalwealth - December 28, 2012

Initial U.S. retail sales figures released on Wednesday showed sales growth for the holiday season was the worst since 2008.

According to MasterCard SpendingPulse, holiday sales posted a paltry 0.7% increase against expectations of a 3-4% gain. That's below the same period last year when sales grew at a 2% pace.

Analysts looking for a convenient excuse have been quick to blame Hurricane Sandy. But in reality, there's something else much bigger at work here.

That's why I'm actively hunting for shorts in the retail sector right now and will be for much of the first quarter next year.

Following the holiday data and some moderate earnings that incorporate the extra week this quarter, I simply don't think hard-core retail companies like the The Gap (NYSE: GPS), American Eagle Outfitters (NYSE: AEO), The TJX Companies (NYSE: TJX), and Abercrombie and Fitch Co. (NYSE: ANF) – which are up 71.3%, 47.41%, 32.2% and 50.67% respectively year to date through Christmas Eve – will be able to sustain these big up moves.

In fact, there are several real reasons why I think holiday sales were down and consumer spending will continue to drop into 2013, making select retailers good short candidates:

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These Are the Retailers to Watch This Earnings Season

By Kerri Shannon, Associate Editor, Money Morning - October 14, 2011

There are a handful of savvy retailers that prepared for the tough economy by positioning themselves to profit - and now they're being rewarded with blockbuster earnings.

So far this earnings season, more than half of retailers have beat analysts' estimates for same-store sales, according to a Thomson Reuters survey.

These earnings season winners have streamlined inventories and catered to the consumers who are still spending - and the efforts have paid off. They're exceeding sales expectations, watching their stocks climb, and are expected to continue the streak in future quarters - meaning profit opportunities for investors.

Here are the companies coming out on top of the retail sector.

Discounters Deliver Profits

Discount retailers continue to profit from price-conscious consumers, and many chains saw a solid boost from a healthy back-to-school shopping season.

"Despite being buffeted by the winds of inflation, [Hurricane] Irene and unemployment, this back-to-school season was the best since 2006," Craig Johnson, president of retail consultant Customer Growth Partners, told Reuters.

One of the best performing discount retailers so far has been Family Dollar Stores Inc. (NYSE: FDO), which reported record sales and earnings for the fourth quarter and fiscal year ended Aug. 27. Net sales for the quarter were up 9.1% from the year before to $2.13 billion, with sales totaling $5.55 billion for the whole year.

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Leaders Emerging as the U.S. Economy Shakes Off Its Stupor

By Jon D. Markman, Contributing Writer, Money Morning - September 20, 2010

The past five days added more color to the emerging picture of U.S. economic growth that is slow and unsteady -- but still in gear. Investors decided that was good enough, and bid up risky assets. The Standard & Poor's 500 Index rose 1.4%, emerging markets rose 1.8%, gold rose 2.2% and bonds fell.

Underlying breadth modestly weakened, as the market is primarily being propelled now by a withdrawal of sellers -- not an increase in buyers. News late in the week typified the entire span, as it mostly favored bulls.

Indeed, the U.S. economy faces an uphill climb but some companies are emerging as market leaders.

To find out which companies are dragging the economy forward read on...

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Stock Market's Rally A Salute to Slow Growth

By Jon D. Markman, Contributing Writer, Money Morning - September 7, 2010

The markets staged a relief rally last week that reflects Wall Street's attitude about the overall economy. Simply put, investors are saying they can live with slow growth, so long as the U.S. can avoid a double-dip recession.

Stocks leapt around the world last week like jets of water shooting out of a fountain that had been closed down for weeks. The major U.S. indexes rose 3%, the NASDAQ rose 4%, non-U.S. foreign big-caps rose 3.6% and small-caps rose 4.6%.

Many of our plays on growth overseas rose even more: iShares MSCI Thailand Index Fund (NYSE: THD) jumped 4.9% and iShares MSCI Chile Investable Market Index Fund (NYSE: ECH) rose 4.4%, while iShares MSCI Singapore Index Fund (NYSE: EWS) rose 3.2% and iShares MSCI Turkey Index Fund (NYSE: TUR) rose 3.5%. Once again, as we have seen all year, the response in iShares FTSE/Xinhua China 25 Index ETF (NYSE: FXI) was more muted, up 2.4%.

Read on to see where the next turning point for the market will come...

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Brick-and-Mortar Retailers Moving Business Online as Foot Traffic Declines

By Kerri Shannon, Associate Editor, Money Morning - September 2, 2010

U.S. retailers this year geared up for the annual back-to-school shopping season, the parents and children didn't fill the streets and shopping malls - they stayed inside, and online, cruising for bargains on the Internet.

Overall sales this August were up only slightly from last year, failing to give stores the boost they needed after a sluggish summer.

A report from MasterCard's SpendingPulse released yesterday (Wednesday) showed that consumers gave a slight bump to children's clothing and consumer electronics with their back-to-school shopping, but pulled back in other areas of merchandise which cut into sales gains.

But among uneven retail numbers this year exists a bright spot that has been growing for years, and is leading companies to overhaul their traditional business models: the online retail market.

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During the Hottest Summer in Years, it's Time to Start Pursuing Cold Weather Profits

By Larry D. Spears, Contributing Writer, Money Morning - August 22, 2010

Take our word for it: Even though much of the nation has experienced record high temperatures this month, it'll be plenty chilly before you know it - and if you want some hot profits to warm you up come January, you'd be smart to think "winter" in August.

No, we haven't been sneaking refreshments from a St. Bernard's K9 cask: The reality is that a lot of companies that specialize in cold-weather products are stuck in the summer doldrums right now, meaning their share prices are in the cellar.

But, when rising winter demand ramps up their sales and profits, those stock prices will likely march higher, right along with your monthly heating bills.

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