The holiday shopping season got off to a fast start, but concluded with a whimper and not the anticipated bang. It appears that the booming start pulled sales forward and retailers didn’t do enough — i.e., add to discounts — to attract shoppers between Black Friday and mid-December.
Source: Thinkstock
Retail Metrics said this morning that it is now expecting December same-store sales to rise by just 1.9% year-over-year, down 60 basis points from an initial estimate of 2.5% growth at the beginning of the month. Excluding drug store sales, same-store sales are now expected to rise 3%, a full percentage point below the earlier estimate.
The retail research firm noted that expectations for specialty retailers Gap Stores Inc. (NYSE: GPS), Limited Brands Inc. (NYSE: LTD), Ross Stores Inc. (NASDAQ: ROST) and The TJX Companies Inc. (NYSE: TJX) have all been lowered.
Department stores did not escape the sales slowdown, with projections falling by 0.5% to 3.6% growth. Estimates declined for Kohl’s Corp. (NYSE: KSS), Nordstrom Inc. (NYSE: JWN) and Macy’s Inc. (NYSE: M) as well. J.C. Penney Co. Inc. (NYSE: JCP) is now expected to post a quarterly same-store sales decline of 24.9%, following a 26% drop in the previous quarter.
Paul Ausick
Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
