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US Retailers’ Funk

13 May 2016 by lberuti

The above grapple depicts the weekly change of the risk premia of the constituents of the US Corporate cluster identified by DataGrapple. Retailers are easy to spot. In an otherwise resilient market as shown by the greenish shades of most boxes, all of them are red (and some bright red). Most of them reported first quarter numbers, and all of them managed to disappoint. Today, JCP (J C Penney Company, Inc) posted revenues that trailed analysts’ estimates and joined fellow discount-oriented KSS (Kohl’s Corporation) which missed estimates yesterday. Higher end rivals did not fare any better. M (Macy’s, Inc) reported lacklustre results and lowered EPS guidance for the year by 57cts (to $3.15-$3.40 from $3.80-$3.90), while JWN (Nordstrom, Inc) also added to evidence that the department store industry is mired in a deep slump when it cut its annual earning forecast. Shoppers across the income spectrum appear to pull back on purchases of apparel and other discretionary goods.