Retail shares slide as otherwise strong consumer spending didn't boost holiday sales enough
Added 01-10-19 11:02:02am EST - “Shares of the country's biggest department stores tumbled on Thursday, led by disappointing holiday results delivered by the biggest department store in the U.S. by market cap, Macy's.” - Cnbc.com
CLICK TO SHARE
A strong U.S. consumer wasn't enough for department stores to counteract broader challenges facing the industry and investors' high expectations for the holiday season.
Shares of the country's biggest department stores tumbled on Thursday, led by disappointing holiday results delivered by the biggest department store in the U.S. by market cap, Macy's.
Macy's said holiday sales disappointed in sportswear, sleepwear, jewelry and cosmetics, and it now expects no growth in net sales for fiscal 2018, instead of its previous projection of an increase of 0.3 to 0.7 percent. The news put Macy's stock on track for its worst day ever, falling by about 19 percent in morning trading.
"Macy's we thought ... was the best of the worst," Stacey Widlitz, president of SW Retail Advisors, told CNBC.
"But the divide between the survivors and the struggling is every year getting deeper and deeper," she said. And department stores are struggling more than other retailers to maintain any sales momentum, as more purchases are taking place online and brands that typically have received prime placement in department stores are investing more in their own sales channels.
Post a comment.
CLICK TO SHARE