The early results of Black Friday 2019 are in. The big winners — aside from the ongoing success of Nintendo’s Switch video game console — were online retailers. Shoppers increasingly did the majority of their bargain hunting online. Why leave the comfort of home with warm fires and full bellies?
According to Reuters, online sales rose more than 20% from last year to $7.4 billion. Yet visits to stores fell a combined 3% during Thanksgiving and Black Friday combined compared to 2018. Early data from RetailNext showed net sales at brick-and-mortar retailers fell 1.6% on Black Friday.
Overall, a pretty grim result as Amazon (NASDAQ:AMZN) continues to dominate. Traders are reacting by pushing down the stocks of key physical retailers. Here are five to sell:
Despite billions spent in an effort to push its ecommerce presence, Walmart (NYSE:WMT) continues to lag behind Amazon as it struggles to find the next growth catalyst. Shares are dropping back below their 20-day moving average and look vulnerable to a return to the early August lows, which would be worth a loss of more than 10% from here.
The company will report results on Feb. 18 before the bell. Analysts are looking for earnings of $1.44 per share on revenues of $142 billion.
Costco (NASDAQ:COST) shares are also dropping back below their 20-day moving average, threatening to fall away from a three-month resistance level, setting up a test of the 200-day moving average that would be worth a loss of more than 10% from here. Although not known as a major Black Friday destination, the company had its fair share of promotions but fell flat in the ecommerce area.
The company will next report results on Dec. 12 after the close. Analysts are looking for earnings of $1.72 per share on revenues of $37.4 billion.
Did you catch the crazy Nutcracker balloon at the Macy’s (NYSE:M) Thanksgiving Day Parade? It’s worth a look if you missed it. The poor marcher who was squished by the balloon is probably how Macy’s management feels as it surveys the damage of what is likely to be a disappointing Black Friday performance. The crowds were thin as shoppers focus on toys and electronics, not apparel. Shares continue to languish near four-month lows.
The company will next report results on Feb. 25. Analysts are looking for earnings of $1.88 per share on revenues of $8.3 billion.
Foot Locker (FL)
Struggling with a variety of competitors, a lack of a differentiated experience, and a reliance on suppliers for innovation, there isn’t much to like about Foot Locker’s (NYSE:FL) business model. Shares continue to languish in a trading range going back to May.
The company will next report results on Feb. 28 before the bell. Analysts are looking for earnings of $1.62 per share on revenues of $2.3 billion. Wedbush analysts recently highlighted headwinds in a note to clients including poor trends in the basketball category.
Abercrombie & Fitch (ANF)
[Editor’s Note: This section has been edited to revise ambiguities around Abercrombie’s earnings date and recent trading performance.]
As retail as a sector continues to see a number of struggles, Abercrombie & Fitch (NYSE:ANF) shares are down 45% from their May highs as management continues to fight to reclaim the company’s late 1990s glory days of overpriced hoodies. ANF stock has traded in a tight range for the past two quarters, however, as it looks for a turning point.
ANF management has not finalized when the company will report earnings. But when it does, analysts are looking for earnings of $1.24 per share on revenues of $1.2 billion.
As of this writing, William Roth did not hold any of the aforementioned securities.