The video that this transcript is based on appeared on Nov.12.
NEW YORK (TheStreet) -- Macy's and Kohl's have stagnant revenues, while the stock price rides the rally wave. Dish dishes out profits.
Good morning and welcome to wall and broad brought them here from the corner wall street Broad Street in lower Manhattan. Equity look to be pointing lower this morning in early trading and here's today's headlines Treasury yields continued to climb. The bond market was closed yesterday so look like the increases are continuing from last Friday. Homebuilder DR Horton (DHI) - Get Report reported a 2 percent fall in orders, but the orders that have are at higher prices and Rackspace (RAX) hosting is down over seven percent this morning after reporting it net income fell 40 percent as the cloud computing company deals with higher costs. It's beginning to look a lot like Christmas that the snow is falling outside our studios, but before we get in the holiday shopping of the fall for our good friends over at Macy's (M) - Get Report and Kohl's (KSS) - Get Report joining me now is Laurie Kulikowski our retail analyst so Lori it's going to be a big earnings week for retailers.
Yeah at Macy's kicks it off tomorrow we have Walmart (WMT) - Get Report we have Kohls we have Nordstrom (JWN) - Get Report on Thursday and then the following week we got a ton of our companies reporting.
Alright when we look at some other earnings estimates for Macy's and Kohl's and look like they're going to be a little bit higher for Macy's but a little bit lower for Kohl's.
I think what is the big issue there is going to be the estimates are calling for really pretty much stagnant revenue growth at some of these big department stores and let's just look at the third quarter I mean that was the back to school season and we saw that was softer than usual. We had the government shutdown last month even though we saw some of the department stores and on our stories that report monthly sales saying that it was OK in October but I think was a lot of promotion going on and we're gonna see that obviously continue into the holiday season.
Alright so the real story it seems to be here is that these revenue numbers are stagnant for these companies even though in my they might make it look like their earnings are hitting.
I think they're gonna have a lot of expense control, but also you really gonna need to watch what their margins are because again you know it's a lot of promotional activity so that could hurt margins for sure.
Right, Kohl's of course always has those great coupons. Let's look at the stocks though because up even though we're talking about the stagnant revenues a coupon for promotions you know the Macy's stock has started to comeback just a little bit here as well as the Kohl's stock.
I think what's going on in the retail just sort of what's going on with the broader market they just really riding the wave of this stock market right now.
Alright so we've seen other stocks move higher. Let's talk about the holiday hours because that's been in the news a lot we're hearing about always a companies are going to be opening on Thanksgiving I mean what do you think about that? Is it desperate?
I would say no, once you're finished with your turkey that the stores are open Best Buy, Walmart just announced earlier on Thursday, Thanksgiving Thursday. You know there's a ton of stores Target, Sears, Kmart there are going to be open on Thanksgiving there's been a lot a consumer backlash that everybody saying this is horrible people should be home with their families. Are they saying that but then they're gonna run out to the stores?
Well I think we see what up see what these are the stories are up against is of course Amazon which you know never closes you can shop online in your own home, but of course the stars want you to comment and buy their stuff.
All right thank for a while hopefully the New York Stock Exchange won't start opening on the holiday and it seems as if always talked about this year's Netflix, pretty much ignoring DISH Network, but it looks as if dish has been reeling in some new subscribers while we locked attention to that Britney you are is here to tell us more.
Yes Dish Network (DISH) - Get Report reported a surprise boost in subscribers during the third quarter, and return to profitability the company said it added 35,000 pay-tv subscribers in the third quarter compared to market expectations of a loss of 39,000. Now the company also reported a 24 percent rise sequentially in broadband subscribers beating estimates.
DISH reported net income of $315 million dollars or 68 cents a share in the quarter, compared with a net loss of $158 million or 35 cents a share a year ago. Revenue rose 2 percent as well, beating expectations.
Written by Debra Borchardt in New York.
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