Shop Talk

Retailers, consumers and prices

Check Out Line-Retail sector racks up more bad news

February 5, 2009

Check out the not-so-chipper news in the retail world.

bk1Restaurant chain Burger King reported lower profits and cut its full-year forecast due to the currency fluctuations, while cosmetics and perfume companies Estee Lauder and Elizabeth Arden rang up lower, albeit better-than-expected, profits and said they would cut jobs.

Indeed, retailers overall posted the second weakest monthly same-store sales performance since Thomson Reuters began tracking the data in 2000 as heavy job losses, weakness in the U.S. housing sector and the still-tight credit markets have many consumers closing their wallets.

In the mixed-bag camp, apparel retailer Gap saw same-store sales fall more than expected, but raised its full-year profit outlook.

There is some good news out there, however. 

Discount giant Wal-Mart posted a better-than-expected increase in sales at U.S. stores open at least a year, almost double what analysts had expected. Meanwhile, Kellogg’s quarterly profit rose and the cereal maker stood by its 2009 profit outlook, and department store operator Macy’s saw a smaller-than-expected decline in same-store sales and raised its fourth-quarter profit forecast.

Also in the basket:

Talbots announces cost cuts, $200 mln loan

Signet to cut costs as Q4 sales fall sharply

Flash is out for wealthy on Valentine’s Day

(Photo/Reuters)

Comments

It will continue to drop…it’s like a domino effect and we should expect to see things get worst before they get better. I’d give it a year!

 

The economy health is in the twist eye. 700 b dollar might be inmprove something in the debt bank, but the amount is not recommended published. Obama didn’t it for the congress

Posted by Drigor Leds | Report as abusive
 

Overall scenario is Not positive at Present. Though some stores are doing well, But that may be due to their Own Image and clientage.
This Junbo stimulus package may hopefully help revive the economy. However,it may be too soon to think that Bad days are over.
Still,we need to remain positive in such odd times.

 

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