Lots of retail earnings being reported this week. Earnings included in the report for May 16th, 2012 include:
Limited Brands (LTD)
NetEase Inc. (NTES)
Hot Topic (HOTT)
Deere & Co. (DE)
Target (TGT)
Abercrombie & Fitch (ANF)
Staples (SPLS)
Retail sales came out yesterday and while positive and in line with analysts expectations, they were only up by one tenth of one percent or 0.1% on a month over month basis.
Most of the draw down was attributed to building materials, department stores, and clothing. With this in mind, traders will need to be cautious about going long into any of the earnings coming out tomorrow.
However, it is important to note that on a year over year basis, we are still seeing growth of retail sales at about 6%. This amount has come down slightly over the past few months from the high of about 9% and has slowly stagnated to around 6%. Despite the month over month data, this is still fairly good growth, this may just be a disappointing month / quarter for retailers, especially considering seasonality.
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