From a most “ho-ho-hopeful” time of year, early 2017 has quickly turned into despair for retail stocks following warnings from department store operators Macy’s Inc (NYSE:M) and Kohl’s Corporation (NYSE:KSS).
But is it fair to lump retail stocks all together and summon up chatter of a retail recession? Probably not, though fear-mongering does sell 24/7.
The fact is, one might be reminded just days ago the President-elect was tweeting, “the world was gloomy before I won — there was no hope. Now the market is up nearly 10% and Christmas spending is over a trillion dollars!”
All the buying Donald Trump was referring to must be going somewhere, right? Of course, Amazon.com, Inc. (NASDAQ:AMZN) comes to just mind if you’re a consumer like me and open up a recent bank statement.
As important, retail stocks span from online and traditional brick-and-mortar sellers to those companies doing the actual manufacturing of goods such as apparel, accessories, games and toys, cosmetics, housewares — which consumers are buying by the boatload apparently.
Bearing all this in mind, let’s take a look, both off and on the price chart, of Thursday’s retail stock scream team Macy’s and Kohl’s, as well as athletics giant Nike Inc (NYSE:NKE) and specialty retailer Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA). From there, let’s see if there’s more to the story and actual investment opportunities beyond the headlines.