Target CEO was on CNBC this morning. Earnings came out this morning and disappointed and stock off 20%.
His complaints were that buyers were shopping but switching from higher margin items to lower.
Expenses like Wal-Mart were way up. Due to fuel prices alone expense was up 1 billion in transportation costs in quarter. Labor costs way up .
Keep in mind fuel prices are worse now than early in quarter .
Lowes also had disappointing results this morning. Blamed weather for some of it but their business is more based on dyi business than home depot which had better than expected earning. My guess is that consumers are having a last harrah with travel and eating out from pent up pandemic demand. But prices, utilities and gas and price of everything they purchase will stop consumers . Meanwhile interest rates rising won't be creating any soft landing.
Anyway the lack of oil and gas isn't going to be solved by current industry situation and this administration . 1 billion $ increase in cost to one company Target shows just how big a problem this is. I think if this quarter manages a positive GDP (I kind of doubt it) , by fall we will be in a recession .
Watch for the administration to quit trying to tell people everything is great or address the energy prices and concentrate on abortion and blaming the other party for being the no Klux Klan . Economy could go south and take market with it quickly. Lowes down 25% ytd. Looks to me like we could be a good long ways from a bottom .
www.cnbc.com
His complaints were that buyers were shopping but switching from higher margin items to lower.
Expenses like Wal-Mart were way up. Due to fuel prices alone expense was up 1 billion in transportation costs in quarter. Labor costs way up .
Keep in mind fuel prices are worse now than early in quarter .
Lowes also had disappointing results this morning. Blamed weather for some of it but their business is more based on dyi business than home depot which had better than expected earning. My guess is that consumers are having a last harrah with travel and eating out from pent up pandemic demand. But prices, utilities and gas and price of everything they purchase will stop consumers . Meanwhile interest rates rising won't be creating any soft landing.
Anyway the lack of oil and gas isn't going to be solved by current industry situation and this administration . 1 billion $ increase in cost to one company Target shows just how big a problem this is. I think if this quarter manages a positive GDP (I kind of doubt it) , by fall we will be in a recession .
Watch for the administration to quit trying to tell people everything is great or address the energy prices and concentrate on abortion and blaming the other party for being the no Klux Klan . Economy could go south and take market with it quickly. Lowes down 25% ytd. Looks to me like we could be a good long ways from a bottom .
Target shares sink 25% after company says high costs, inventory woes hit profits
The big-box retailer said it saw a healthy customer, but a shift to experience-based purchases, such as toys for birthday parties and luggage for trips.
