Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Retail Roundup: Same-Store Sales Up at Wal-Mart, Costco


Classic case of right place, bad time.


Wal-Mart (WMT) turned in better than expected Same-Store Sales this morning. Costco (COST) did the same.

If this sounds familiar, it should. It was the same story last month and the month prior to that. Indeed, ever since early January when unemployment and oil prices started ramping in earnest, reporting on SSS has been akin to being the beat reporter for the Harlem Globetrotters.

The details for Wal-Mart this month had some slight spins. Electronic sales were cited as particularly strong, which works for the "Man-Cave" thesis.

WMT also nudged estimates higher from 0.82 to a range of 0.82 - 0.84. As a Wal-Mart shareholder, which I remain, this was a nice release. If I were going to wager on the meaning of "0.82 - 0.84" I'd say it means the quarter will really come in at 0.85.

Alas, as would be the case if I were traveling with the Globetrotters, it's hard to find a good way to bet on another Trotters win. My "bet", such as it is, is staying long and sleeping well.

Sticking with the discount and clubbing theme: Costco came in at 5%, ex fuel. There's a reason Costco and Wal-Mart are near their 52-week highs as they manage to find consistent results in a world of consumer pain. The stimulus checks help but the business models for both Costco and Wal-Mart help even more. The companies are in the right place at a bad time for the consumer.

That's as good as it gets for retail stocks you can keep in your portfolio in a low-stress way in 2008. It's not the thrill ride of trying to catch the bottoms in specialty, and you're going to miss the roller-coaster of a "Long Children's Place (PLCE), long J. Crew (JCG) book" but, hey, I'll take it.

What are the pro traders saying about your stocks?
Minyanville's Buzz and Banter- 14 day FREE Trial
< Previous
  • 1
Next >
Position in WMT.

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.

Featured Videos