Sales Strong for Non-Home Retail Goods
David Schick, retail analyst at Stifel Nicolaus, told CNBC’s “Morning Call” that retail sales continue to be split between home and non-home expenditures.
“Everything in and around the home has been impacted –- home improvement and home furnishings,” Schick said. “Things outside the home are generally OK. I think May’s numbers suggest that. Late May is maybe a little better than early May in some cases. We haven’t seen much change, but that trend –- home vs. non-home (spending) –- has been in place for some time.”
He said luxury retailers can continue to post strong sales because big-ticket customers generally do well in the market and aren’t concerned about everyday expenses such as gas prices.
Brian Tunick, specialty retail analyst at JP Morgan, said the weak dollar is boosting luxury sales.
“The U.S. is now one of the cheapest places to buy luxury goods, and that has changed significantly over the last three or four years,” Tunick said. “Tourists also have been helping to drive these high-end increases.”