Last Friday — known as "Black Friday" — kicked off the start of the holiday shopping season. Charles Grom, retail analyst at JPMorgan, shared his views on the strength of the retail sector.
“Our winners on Black Friday were Wal-Mart, Target and Kohl’s,” Grom told CNBC. “We thought all three did a great job advertising their door-busters earlier on and that helped gain traffic early on.”
Grom said the strong Black Friday weekend may have created enough momentum to offset the weak retail start to the November month for discounters and department stores.
“It’s important to recall that the first three weeks of the month were very soft so we do think that some of the retailers were able to make it back, but it’s likely that most of the retailers in our coverage group will miss Street estimates for November comps,” he said.
Grom has an “overweight” rating on Wal-Mart , Target , Kohl’s , Costco, JCPenney and Macy’s.
He has a “neutral” rating on Saks, Nordstrom, Family Dollar and BJ’s Wholesale.
- Watch Grom's Previous Appearance on CNBC (Nov. 24, 2009)
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CNBC Slideshows:
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Disclosures:
Grom has investment banking clients who own shares of M, KSS, JCP, JWN, COST, DLTR, TGT, KR, WMT and SKS.
JPMorgan owns shares of SKS.
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