Now affecting retail markets. Target down 25 per cent today on earnings. Wait til the labor market is hit then the commercial mortgage backed securities. This Biden "trasnsitory inflation" appears to be not so transitory.lol
We're in for fun times even though a good portion of the US populace is in denial mode
Mall stocks are reeling after Target drops a profitability bomb on the retail sector May 18, 2022 8:23 AM ETTarget Corporation (TGT)BBWI, TJX, M, JWN, KSS, DDS, GPS, AEO, VSCO, URBNBy: Clark Schultz, SA News Editor37 Comments Profit Rises 18 Percent At Target Corp Scott Olson/Getty Images News
The mall store sector fell in early trading on Wednesday after Target (NYSE:TGT) rattled the sector by lowering guidance on "unexpectedly" high costs that were not passed on fully to consumers.
Target (TGT) was less profitable than anticipated and guided for weak operating margin. The retailer was hit by inventory issues (too early and too late), wage pressure at distribution centers, and an unfavorable merchandise mix. Meanwhile, TJX Companies (TJX) also warned of higher freight and labor costs with its earnings report.
Target (TGT) fell as much as 24% in the premarket session. With many earnings reports and guidance updates still due out in the retail sector, traders are jittery again on the near-term outlook.
Macy's (M) -5.82%, Nordstrom (JWN) -5.56%, Kohl's (KSS) -5.10%, Dillard's (DDS) -3.05%, Gap (GPS) -3.59%, American Eagle Outfitters (AEO) -3.48%, Victoria's Secret & Co. (VSCO) -3.77%, Bath & Body Works (BBWI) -4.25%, and Urban Outfitters (URBN) -1.99% all showed losses in the premarket session.
In the consolidated statement of operations, I've highlighted the change in cost of sales and SG&A expenses. While total revenue rose 4.0% from last year, cost of sales spiked 10.4% and SG&A expenses rose 5.6%. The cost of sales makes this a supply chain story since those costs would include things such as truckload transportation, which as we know, has been at record levels. Likewise, higher prices for importing products would fall within this category.
•Looking within the "rate analysis," notice how the gross margin rate was down 430 basis points from last year. This is a massive drop and suggests consumers are buying a different basket mix. For example, more groceries and fewer electronics. This is why I keep stressing the key role of gross margin rate in shaping retailers' decisions.
Implication: for anyone who still questions why supply chain matters (after these past two years, I would seriously hope no one still has this question), watching Target's stock get crushed in pre-market trading this AM should make this point very clear.
Great information. This is one of the reasons why I come here. Information from the trenches and not from some talking head on TV.
kwg
For liberals and anarchists, power and control is opium, selling envy is the fastest and easiest way to get it. TRR. American conservative. Never trust a white liberal. Malcom X Current NRA member.
Implication: for anyone who still questions why supply chain matters (after these past two years, I would seriously hope no one still has this question), watching Target's stock get crushed in pre-market trading this AM should make this point very clear.
Azzholes like me hurting Walmart and FedEx #240 pounds of water softer salt at a time...
#1,000 pounds of fertilizer last week... FREE shipping... cheaper than bulk... 3% rebate from Active Junky...
There is a paradigm shift occurring... pay attention folks... gonna get ugly.
If you are not actively engaging EVERY enemy you encounter... you are allowing another to fight for you... and that is cowardice... plain and simple.
Retail sales are up 1% for the month of April according to the US Commerce Department even with adjusted for inflation at .3% on a monthly basis for April.
Retail sales are up 1% for the month of April according to the US Commerce Department even with adjusted for inflation at .3% on a monthly basis for April.
Cars, electronics, restaurants, etc.
lol. and inflation is only 8 per cent according out govt too
Retail sales are up 1% for the month of April according to the US Commerce Department even with adjusted for inflation at .3% on a monthly basis for April.
Cars, electronics, restaurants, etc.
lol. and inflation is only 8 per cent according out govt too
True, ribka.
That was April but May will probably tell another story more in line with what you’ve posted.
We're in for fun times even though a good portion of the US populace is in denial mode.
It isn't that a good portion is in denial mode, it is that a good portion is totally ignorant of anything going on in this country beyond their little bubble.
They never watch any news.
They never even read any headlines.
They're on pinterest looking at craft ideas for Little Suzies birthday party and tiktok watching some stupid video of a cat jumping from a table to a couch, and taking Little Johnny to his t-ball practice, crying that gas is $5/gallon and that McDonalds won't pay them a living wage higher than the $15/hour they're paying part time help.
And then come election day, they're voting for whoever is telling the best story on how much they're going to give.
We're in for fun times even though a good portion of the US populace is in denial mode.
It isn't that a good portion is in denial mode, it is that a good portion is totally ignorant of anything going on in this country beyond their little bubble.
They never watch any news.
They never even read any headlines.
They're on pinterest looking at craft ideas for Little Suzies birthday party and tiktok watching some stupid video of a cat jumping from a table to a couch, and taking Little Johnny to his t-ball practice, crying that gas is $5/gallon and that McDonalds won't pay them a living wage higher than the $15/hour they're paying part time help.
And then come election day, they're voting for whoever is telling the best story on how much they're going to give.
The bigger problem is that they don't understand it even if they do read it.