Don't Be Fooled: Retail Sales Were Strong

Dillard's (DDS Quote) numbers also disappointed, with a 2% drop rather than the 1.2% decline Wall Street expected. Conversely, Kohl's (KSS Quote) continued to get it right and was rewarded with a 10.5% comp, much higher than the already strong 6.2% estimate.

The teen retailers were mixed. Abercrombie & Fitch (ANF Quote) missed badly with a decline of 5%, compared with Wall Street's forecast for a 1.2% decline. Year-to-date same-store sales are off 4%. Hot Topic's (HOTT Quote) same-store sales slumped 6.1%.

On the other hand, Pacific Sunwear (PSUN Quote), The Buckle(BKE Quote) and Zumiez (ZUMZ Quote) all posted strong results.

Stick with companies that are simply managing their businesses well, on both the sales and the cost side. Names like Kohl's, Costco and Target immediately come to mind.

Sure, Gap (GPS Quote) and Wal-Mart are enticing turnaround plays, but as I've been advising for months, wait until there is more evidence that things are improving. These businesses and stocks won't turn on a dime.

Closing Thoughts

This is my final column for TheStreet.com. It has been an honor for me to have had you as an audience. I appreciate all of the feedback and notes that I've received from readers over the course of my tenure (even the nasty ones). I'd also like to add that the writers, editors and contributors at TheStreet.com are the finest I have ever worked with and I'll continue to read the site on a daily basis. I hope that our paths cross again.