Retail Rapid Fire: Earnings Roundup

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Feb. 27 (Bloomberg) –- Customer Growth Partners President Craig Johnson discusses earnings for major retailers including Costco, Best Buy, and Gap and what the numbers can tell us about consumers. He speaks to Pimm Fox on Bloomberg Television’s “Taking Stock.” (Source: Bloomberg)

Thoughts on gap.

They are both california-based.

Cap is ok.

They had a strong quarter.

Retail is very soft right now.

1% is not great.

2% is better.

They are lagging.

They reported a 3%. pretty good result this afternoon.

It has been a challenging time in retail.

Let's turn our attention and add to the mix, abercrombie & fitch.

Some stores are still reporting.

All of the three a's, the teen retailers, everybody is struggling.

The entire sector, which is about 70% female.

Why is it struggling?

There is a macro rotation out of discretionary to nondiscretionary.

There is no income growth.

No one has excess money to spend.

Very few people.

Then you jump down.

Whether it is 18 retailer or a women's retailer, they have reported slow growth.

They were down.

Then you jump to the teens.

They have very dated concept.

The concept has been in the same place where they have been for the last 10 years.

They all locked customers to fax fashion.

-- lost customers to fax fashion.

Forever 21, h&m. they cannot get the inventory in the other stores?

Is a shorter leadtime cycle that is why they call it fax fashion.

You can see it on the runway and then you will see it at h&m 82 weeks later.

-- a few weeks later.

Exactly.

They are able to deliver fashion that is current.

Fashion is not about fabric.

It is about newness.

H&m brings newness into the game.

They have been doing a great job on it.

I was just in the fifth avenue store and it looks great.

And that are on an interesting -- new fashion that is fun and interesting that you do not see everywhere.

Are they competing against macy's for example?

To some degree.

Macy's in jcp have department that cater to millenial and teens.

That is not their strong suit.

Who is doing the best right now?

You mentioned h&m, who is the retailer that you think of capturing the most mind share question mark cosco has been knocking it out of the park.

Big fellow carol too.

-- they fell apparel too.

The apparel side has been doing very well.

It is not fast fashion, but is the trend continues as you described, people's's bending money on nondiscretionary items, they do not have the money, what will they buy?

Food and the things they need.

Costco has household chemicals and consumables.

They are very strong in consumer electronics.

That is a low margin business.

If you buy a tv, you do not go to walmart or best buy.

You go to costco.

Sales are soft overall.

Loudly margins, down 1%. they are trying to figure out a way.

They had to go so deep.

They are competing against walmart and amazon.

They have a millstone on their back.

Is that like sears?

Harshly.

-- partially.

You go get the amazon, and you are losing.

Best buy had a huge outage it that.

Walmart also competes on price.

They have long-term changes in demand.

They must repurpose some of the space.

I learned a lot.

Craig johnson, president at

This text has been automatically generated. It may not be 100% accurate.

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