Ever so quietly, retail stocks are being driven to their demise — leading all industries to the downside over the past month.
Some notable decliners include SHLD -33%, DDS -18%, M -18%, RH -16%, BBBY -11%, BOOT -24%, CROX -19%, DECK -17%, KORS -12%, GES -24%, DEST -22%, ANF -21%, EXPR -21%, FINL -18%, AEO -17%, URBN -17%, JWN -17%, GPS -13%, BGFV -14%, DKS -13%, VRA -24%, RL -21%, OXM -19%, PVH -17%, KATE -13%.
These losses come amidst the backdrop of the strongest consumer sentiment numbers in 12 years. The final December readings came in today at 98.2 — up from November’s reading of 93.8.
“Ongoing solid readings on consumer confidence reinforce our view that GDP growth should remain firm in the near term, and we see the level of confidence as consistent with ongoing strength in consumer spending,” said Blerina Uruci, economist at Barclays.
I find this divergence to be apropos of 2016, where the exact opposite occurred. This was, without question, a George Constanza year.
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Average Americans feel good about the economy overall but do not have the buying power to make purchases.. goes along with the idea that wages aren’t rising at even a reasonable rate.
I don’t get that AT ALL…the malls where I live have been absolutely JAMMED PACKED for weeks. It’s pandemonium. If retailers are unable to make $$ in this environment, something is very wrong with their business model. Just sayin’..
I think, based on what I see in our store, traffic count will be up but per ticket $$ volume will be down. AKA…more people out shopping but spending less.
Thank God the middle class oppression by the entitled socialist globalist communist warming scumbag PCist is ending!
I’m a Dow 30 employee (mgt) – second year of no raises.