Novice Investing - January Result for Retailers

Date: Monday 01st 2008f December 2008 05:46:21 PM

January Result for Retailers - 02/06/2006

By: Novice Investing Staff

A slew of retailers report their same store sales for the month of January. January is the next busiest month after December, which is the period where retailers try to make it. Some retailers have as much as 40% of their sales tied up during the November-January period. Therefore, the month of January is an important month for retailers. The full report can be viewed here, among others. Here, we are tracking a list of retailers that interests us the most.

Sharper Image Corp. (SHRP). The company again reported a double digit drop in same-store sales. For January, same-store sales decrease 13 % and year to date, same-store sales had dropped 16%. Analysts had expected Sharper Image to report a 90 cents per share loss as opposed to an 88 cents estimate last month. The trend seems to indicate that things will continue to get worse for Sharper Image. As of October 2005, the company has a mere $ 1.86 Million cash on hand versus a $ 45 Million cash three months earlier. Meanwhile, inventory rose $ 50 Million as of October 2005. This indicates that the company expects a good holiday season. Meanwhile, the result is a double digit decrease in same-store sales, which is not a good sign. Someday, Sharper Image needs to discount all those bloated inventory and it will hurt profitability.

Pier One Imports Inc. (PIR). Pier One reported an 8.2 % rise in same-store sales for January, which is a rarity for this company. Analysts expect a 1.9% decline in same-store sales during the period. Last month, management had stated that they will initiate a new marketing initiative in March 2006. They expect February to be a transition period as new merchandise are coming in and old inventories grew leaner. While gross margin fell due to promotion, at the very least, Pier One is able to increase sales for the January period. That will be positive for the stock as it has reported periodic increase in same-store sales.

Jo-Ann Stores Inc. (JAS). The fabric retailer reports a 3.2% decline in same-store sales for the month of January. Stock has fallen by more than 60% for the last 52 weeks. Therefore, a weak performance is expected for this retailer. Its high debt load make it susceptible to stock's wild fluctuation as it is deemed to be a speculative investment.

Here is the number for the a few select companies. Abercrombie & Fitch (ANF) reported a whopping 33% increase in same-store sales in January. Gap Inc. (GPS) reported a 1% rise in same-store sales for the month of January. Meanwhile, Walmart (WMT) reported a 4.7% rise in same-store sales.

END

You can view other helpful commentary by clicking here

You can also submit your own investing articles here

Disclaimer: The sole purpose of this article is educational. This article is merely the opinion of the writer and is not in any way a buy/sell recommendation regarding Pier One Imports Inc. (PIR) or any other securities.

[Resources] [Forum] [Link Partner ] [Novice Investing Directory ] [ Submit Your Article Here ]