Client News Release
Is Sears a bargain stock? No way (at Fortune) and Saks, National Coal: Biggest Price Decliners (SKS, NCOC) (at The Wall Street Journal Online)
City of Industry, CA --(www.FinancialNewsUSA.com)-- 11/20/2008 - Department Stores industry news provided by Financial News USA (OTC: FNWU). NEW YORK (Fortune) -- Investors who think shares of Sears Holdings are a bargain after plummeting 80% from their peak should think again.
That might sound like a no-brainer after retailers across the board - from Macy's (M, Fortune 500) to Best Buy (BBY, Fortune 500) - have been reporting dismal third quarter results amid one of the worst consumer spending downturns in decades. But there are reasons why Sears (SHLD, Fortune 500) is likely to disappoint more than most when it reports earnings Dec. 2.
A big chunk of the Hoffman Estates, Ill.-based retailer's sales comes from appliances, tools and electronics - categories that have been decimated by the housing collapse. Sears and its sister retailer Kmart have long been getting clobbered by competitors like J.C. Penney (JCP, Fortune 500) and Wal-Mart (WMT, Fortune 500). That drubbing is likely to get worse in an economic downturn. [Read the full article]
The holiday outlook for the luxury world turned grimmer Tuesday, after Saks Inc. reported a wider-than-expected loss in the fiscal third quarter, and both it and Burberry Group PLC offered downbeat forecasts.
Neiman Marcus, which is set to report fiscal first-quarter results on Dec. 10, has also suffered since the financial meltdown intensified in September. Last month, the chain saw a 14.5 percent drop in same-store sales for the quarter ended Nov. 1. Same-store sales are sales at stores opened at least a year and are considered a key indicator of a retailer's health.The silver lining? Shoppers with a big appetite for status handbags and fashions are getting fat discounts. Saks has slashed prices by up to 60 percent. Neiman Marcus is offering an additional 40 percent off on already reduced merchandise. [Read the full article]
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