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Same Store Sales Color

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"Plenty of retailers are packed with customers one month and out of business the next!"

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With the obvious exception of consumer electronics, more investors have lost money by confusing their personal experience with an investment opportunity in retail than any other sector. In part this traces back to Peter Lynch's seminal 1988 book One Up on Wall Street. The intent of the book was encouraging readers to use what they see around them as a starting point for investment research.

What that intent morphed into was "I walked past that store and it was PACKED! The stock must be a screaming buy!"

Suffice it to say, that's a dangerous way to make investment decisions.

As part of the 'Ville's mission to translate some of the mysteries of the Street in a way that can be understood by all, we have created a living spreadsheet that will be updated the first Thursday of every month when retailers release same-store-sales. The goal of the feature is to become a one-stop source for sales estimates and how the actual results compared for each period.

Most importantly, we'll try to provide a quick breakdown of the "color" of the data in a way that translates how the numbers are viewed by the Street and the potential effect on the underlying stocks. In other words, we want to answer questions like "Why is KSS up w/ flat SSS when Abercrombie & Fitch (ANF) is dropping a buck despite 2% gains?" (Because Kohl's is heavily shorted, has low expectations and got an upgrade this morning on the notion that KSS is setting up remarkably easy comps going forward.)

This month marks a somewhat thin debut of the feature which will be fleshed-out over the next few months. We welcome feedback and ideas for ways we can make it add maximum value for you all!

Click here for some vibes on the same store sales figures

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No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

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