GO
Loading...

Enter multiple symbols separated by commas

Retailers Get Back To Basics

Most of the large retailers have reported, and the results are better than expected, at least on the bottom line.

Remember desperate efforts to clear merchandise over Christmas? Remember Macy's infamous 50 PERCENT OFF EVERYTHING sale? That is gone.

Companies are beating earnings on:

-cost cutting, and

-much better inventory management.

That's fine, and it's good news...but what about the topline? When will sales stabilize? Look at this comparable store guidance for the full year from these companies:

    • Saks: down low double-digits
    • Home Depot: down 9%
    • Lowe's: down 4%-8%
    • Dick's Sporting Goods: down 6-9%
    • Nordstrom: down 10-15%
    • JC Penney: down 9%

Pretty poor, eh? But traders keep saying it's better than down 20 percent that a lot were expecting earlier in the year.

Bottom line: most professional traders in retail stocks are not worried about the lack of topline growth. The position of the bulls is:

1) The most important story is that companies are SURVIVING

2) Topline growth is a 2010 story

3) 2009 is the trough year for earnings

Symbol
Price
 
Change
%Change
DKS
---
HD
---
JCP
---
JWN
---
LOW
---
M
---
SKS
---

_____________________________

_____________________________


Questions? Comments? tradertalk@cnbc.com

  • Bob Pisani

    A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

Wall Street

  • Robert Shiller

    Nobel Prize-winning economist Robert Shiller says that his key valuation indicator is flashing warning signs.

  • Lael Brainard

    The Fed is in the early stages of an analysis on changes in bond market liquidity, amid signs that liquidity may be less resilient than in past.

  • Bill Gross

    Janus Capital acquired a majority interest in Kapstream Capital and said Kapstream's Palghat will support Bill Gross as co-portfolio manager of the Janus Global Unconstrained Bond strategy.