This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Jim Cramer's Best Blogs

Stocks in this article: AAPL CVX COST

Retail Is Alive and Kicking
Posted at 5:30 p.m. EST, Feb. 17, 2010

The most maligned industry out there might be retail. No matter what happens to the companies, people think the news is bad. These people are stuck in the past.

In the past few days, we have had fabulous reports from VF Corp (VFC), Perry Ellis (PERY) (mentioned in the columnist conversation ) and Phillips Van Heusen (PVH). These three pretty much run the full spectrum in clothing retail. But The North Face, Arrow and Perry Ellis seem to mean nothing to people.

To me, they are terrific barometers. So is Jones Apparel (JNY), another company that last week reported a nifty quarter, which was obscured by some one-time hits.

Darden (DRI) and Whole Foods (WFMI) are two other plays I consider quintessentially retail. Whole Foods in itself is a sign of a healthy consumer because it is as expensive as all getout to go there; yet, its take-home business is booming. But it isn't so booming that it's hurting the Olive Gardens and the Red Lobsters of the world.

Or, consider Panera (PNRA), Chipotle (CMG) and Cheesecake (CAKE). These are moderately priced places, and you could argue that strength there doesn't mean much. I say, "Wait a second, these places saw slowdowns when things got tough; the slowdown is over."

Speaking of places that saw slowdowns, how about Abercrombie & Fitch (ANF), the quintessential overpriced teen retailer? Even this company has its act together now.

I can throw in a whole bunch that haven't recently reported, Tiffany (TIF) and Nordstrom (JWN) being the best examples.

Also, do you think we would get all of those upgrades of Home Depot (HD) if business wasn't improving? How about that great recent number from Costco (COST), which is propelling that stock up nicely?

The simple conclusion: Retail is alive and well. Once again, because unemployment is high, we dismiss it, or we say it is an unimportant time of the year, or that a calendar shift helped the results.

I say, give me a break. Things are better. That's all there is to it.

Random musings: Applied Materials (AMAT) and Hewlett-Packard (HPQ) seem pretty terrific to this guy.

At the time of publication, Cramer was long Costco and Home Depot.

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs