‘Amazon Effect’ on Retail Margins Not Over, Morgan Stanley Says
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Hardline retailers are in for continued margin pain following the prevailing third-quarter theme of “profitless growth,” according to Morgan Stanley.
“The margin damage isn’t done” for companies like Lowe’s Cos., Target Corp., Best Buy Co., Williams-Sonoma Inc. and BJ’s Wholesale Club Holdings, wrote analyst Simeon Gutman in a note. Third-quarter Ebit dollars fell for four of the five companies, he said.