Winter Holidays

In the wake of mounting losses and increasing doubts about its viability, Sears Holding Corp. is facing pull back from some of its vendors.   That is according to a report by Reuters, which said that suppliers to Sears are becoming more defensive to protect themselves from the risk of nonpayment by doing such things as reducing shipments and asking for better payment terms.  

With Easter being almost a month later than last year, Americans are on track to spend more than ever, according to the National Retail Federation.  

After solid start to the year, retail is now back in softer growth territory. While the 2.1% rate of overall expansion is not disastrous, it is much lower than the past few quarters and is largely the result of higher gas prices which buoyed sales at gas stations by 15.8%. The pure retail number is more concerning, with the 0.8% increase being the slowest growth recorded since February 2013.  

The delay of tax refunds helped keep consumer spending in check on February.   Retail sales in February inched up 0.2% seasonally adjusted over January, according to the National Retail Federation. (The NRF numbers exclude automobiles, gasoline stations and restaurants.)   The industry’s performance in February was mixed. Electronics and appliance stores took the biggest hit, with sales falling 2.8% over the previous month.   

Strengthened by strong holiday performance, a steadily recovering housing market and an increasingly omnichannel approach, Lowe¹s reported fourth quarter net sales of $15.8 billion, up 19.2% from $13.2 billion in the same quarter a year ago.   Net earnings for the quarter swelled to $663 million, up from $11 million in the fourth quarter of 2015.   Comparable sales increased 5.1% in the quarter.  

The final clearance sale is already underway at Macy’s store in downtown Minneapolis.     Macy’s Inc. has officially completed the sale of its Minneapolis property to 601W Companies for $59 million in cash. The store is expected to close this spring.       The department store retailer will record a gain for the property of approximately $47 million in first quarter 2017. The gain was originally anticipated and included in 2017 earnings guidance previously provided by the company.

The off-price segment continues to be one of the brightest spots in brick-and-mortar retail.    Ross Stores on Tuesday reported earnings per share for the fourth quarter ended January 28, 2017 of $.77, up 17% from the prior year, on net earnings that rose 14% to a better-than-expected $301 million. But the retailer offered a cautious outlook amid economic and industry challenges.    Ross’ sales quarter grew 8% to $3.5 billion. Same-store sales increased 4%.   

The holidays did not bring much cheer for Target, which saw both sales and profit decline during the golden quarter. Worryingly, comparable sales fell at an accelerated pace, ending up at their most negative point for of the fiscal year. The one bit of sparkle in an otherwise dreary set of figures came from digital where sales grew by a stellar 34%, a pace of expansion well above online growth in the whole U.S. market.  

A week after bringing in advisers to determine how to return the chain to profitability, Hhgregg is preparing to file Chapter 11.  

A jolly holiday season helped Gap Inc. post fourth-quarter earnings and sales that beat expectations, leading to speculation that the chain’s turnaround may be starting to take hold.    The nation’s largest apparel retailer reported net income of $220.0 million, or 55 cents per share, up from $214.0 million, or 53 cents per share, last year.   Sales totaled $4.43 billion, up from $4.39 billion and ahead of the $4.41 billion analysts had expected.