I’m analyzing Apparel Stores in this post to give you an idea of what’s taking place outside Amazon. Retailfags try to justify the horrid state of retail by merely pointing to great success at Amazon. WRONG. You cannot simply ignore a major shift in human behavior that was built on economies of scale reliant upon shopping malls and the real estate they occupy.
Total revenues: $107 billion
Total FCF: $6.4 billion
Median YTD return: -20%
Median QT earnings growth: -36%
Median QT revenue growth: -1.35%
PE: 15.6x
PS: 0.39x (lowest since 2006)
Formula for success: earnings growth, as demonstrated by GES and GPS this year. People have resigned themselves to the idea that revenues will drop. Like in the case with McDonald’s, investors want to see massive downsizing and profits increase. Whoever is able to shrink their footprint fastest will win.
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the real estate issue is so fascinating and scary at the same time. How it gets replaced can have a big impact on society. Does it end up looking like Detroit from the original Robocop? Or does it become aesthetically pleasing parks and rec?
You mean like mining company dev. dig a hole. make money. get the fuck out (ie bankerupt) . Let public sector pay to fill the hole and clean shit up.
The iconic Lord & Taylor store and building in New York has changed hands and will become the new headquarters for WeWork.
It’s much simpler than that…. most of middle class is running out of discretionary income and already accumulated enough shit to last them many decades. Never mind the amount of debt and maxed out revolving credit damping shopping trips.
on the plus side the lower HMNY goes the less I have so the less I lose
win/win
GOOS tho
Based on my own shopping experience at big box brick and mortar, they are getting exactly what they deserve. Can’t blame consumers for finding what they want elsewhere.
AMZN coming out with private labels will crush the weak and lowly into fine dust.