The retail sector is getting slammed in the markets.
Stephen 'Sarge' Guilfoyle, a contributor for Real Money and author of TheStreet's Market Recon newsletter wrote about the retail sector and the companies that, as he put it, are getting "clobbered."
Macy's said it now expects comparable-store sales to increase 2% in the year, down from its previous estimate of between 2.3% and 2.5%. Net sales are now expected to be flat year over year, down from the previous estimate of a 0.3% to 0.7% increase, TheStreet's Tony Owusu reported.
Earnings are expected be between $3.95 and $4 a share, lower than its previous expectations of earnings between $4.10 and $4.30.
Guilfoyle wrote, "the real disappointment came from Macy's. How do we know that a negative wealth effect is what took place here? Easy. I'll let Macy's CEO Jeff Gennette tell you himself. He said, "The holiday season began strong, particularly during Black Friday and the following Cyber Week, but weakened in the mid-December period." Gee, I wonder what happened in mid-December? Oh, yeah, most of the financial buzz was around the December 19th FOMC policy meeting, and then Powell pulled the trigger and came off very hawkish in the press conference."
Target said same store sales for the two months ending in December rose 5.7%, well ahead of the 3.4% pace recorded over the same period last year. Target said full fiscal year earnings should come in between $5.30 and $5.50 per share, compared to a Street consensus of $5.39, with fourth quarter comparable revenues rising 5%, reported TheStreet's Martin Baccardax.
You can find wall-to-wall coverage on Constellation over on Real Money.
Kohl's is a holding in Jim Cramer's Action Alerts PLUS member club.