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5 Retailers That Look Better Than Wal-Mart: Equity Pro

Thursday, 18 Feb 2010 | 11:10 AM ET

Wal-Mart reported sales that fell short of Wall Street estimates and said results for the current quarter could miss analysts' views. What do the numbers mean for consumers and retailers overall? Eric Beder, associate director of equity research at Brean Murray Carret shared his insights.

Wal-Mart Earnings & the Consumer
Eric Beder, of Brean Murray, Carret & Co., discusses Wal-Mart's quarterly results and what it tells us about the health of the consumer. Clarence Otis, CEO of Darden Restaurants, share his insight.

“This time last year, Wal-Mart was doing extremely well," Beder told CNBC.

"They were one of the few retailers that had positive comps and had a decent outlook, so in some respects, they’re facing tougher comparisons than a lot of players.”

Beder said Wal-Mart’s core customers’ economic situation hasn’t improved over the year. And the store's weak customer base will ultimately lead to weak results.

“We saw that in the fourth-quarter numbers and their first-quarter guidance,” he said.

Meanwhile, Beder said some fashion retailers are forecasting positive growth going forward.

“The consumer who hasn’t really shopped in a year driven by fashion and new products is tired of not shopping,” he explained. “So we’re starting to see a turn in some of the fashion-driven players, which usually leads us out from these kinds of downturns.”

As a result, companies like True Religion , Guess , and Urban Outfitters are going to benefit, said Beder.

He added that department store chains such as Nordstrom , Neiman Marcus and Saks will also see potential upside when they “get aggressive again.”

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  • Watch Beder's Previous Appearance on CNBC (Feb. 9, 2010)

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Disclosures:

Beder’s firm owns shares of TGT, ANF.

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