Posted on 07/05/2012 1:23:30 PM PDT by Signalman
The annual Macy's 4th of July fireworks show in New York City provided the usual oohs and ahhs. But the pyrotechnics were quickly replaced by a dud of a June sales report from Macy's Thursday morning.
Macy's (M) said that sales at stores open at least a year, the most widely watched measure of health in retailing, were up just 1.2% from a year ago. Analysts were expecting so-called same-store sales growth of 2.3% according to Briefing.com.
But the tone of Macy's CEO Terry Lundgren makes the sales miss even more alarming. In a press release Thursday, Lundgren described the macroeconomic environment as "stagnant at best" and noted that tourists were spending less in New York and other cities.
That's obviously not a good sign. Macy's, because of its flagship store in midtown Manhattan, is a great barometer of global consumer sentiment. When the euro was significantly stronger than it was in years past, the store was deluged by European tourists looking to capitalize on the weaker dollar -- especially around the holidays. (For a look at how strong the world's economy used to be, check out this Black Friday piece I did five years ago on the eve of the Great Recession.)
Now, it would be one thing if sluggish sales could be written off as something unique to the company. But it's not. Target (TGT), Costco (COST), Kohl's (KSS) and The Gap (GPS) also reported same-store sales that were below forecasts.
(Excerpt) Read more at buzz.money.cnn.com ...
How did you know I was in VA?
Look at the Richmond Most wanted list and you’ll see.
“How did you know I was in VA?”
I guessed, because I’ve had the very same observation.
(then I clicked on your profile)
You must not dislike cooking as much as I do. ;-)
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