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
(VFC - Get Report),
(PERY - Get Report) (mentioned in the
Phillips Van Heusen
(PVH - Get Report). These three pretty much run the full spectrum in clothing retail. But
The North Face,
Perry Ellis seem to mean nothing to people.
To me, they are terrific barometers. So is
, another company that last week reported a nifty quarter, which was obscured by some one-time hits.
(DRI - Get Report)
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
that it's hurting the Olive Gardens and the Red Lobsters of the world.
(PNRA - Get Report)
(CMG - Get Report)
(CAKE - Get Report)
. 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 - Get Report)
, 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,
(TIF - Get Report)
(JWN - Get Report)
being the best examples.
Also, do you think we would get all of those upgrades of
(HD - Get Report)
if business wasn't improving? How about that great recent number from
(COST - Get Report)
, 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.
(AMAT - Get Report)
(HPQ - Get Report)
seem pretty terrific to this guy.
At the time of publication, Cramer was long Costco and Home Depot.