Weekly Top 5 Articles – Five Articles Worth Reading

Each week, we highlight five articles of interest focusing on the retail/consumer space. Enjoy.

Wal-Mart Stock Near All-Time High Click to Open PDF

Josh Goldstein at Invesco says that the +2.6% comp in Q1 2012 and the expense management progress “got people excited.” So, an improved comp in a quarter when essentially EVERYONE reported an improved comp and a continuation of expense control/GPM% declines gets folks excited?

What’s really driving WMT high is the fact that the company can continue to under perform and still exceed consensus EPS expectations over the course of the next 6-9 months. Click to see our latest research note on WMT
Date Published: Thursday, June 28, 2012
Source: WSJ

Citi Downgrades Saks, Nordstrom and Macy’s Click to Open PDF

Deborah Weinswig at Citigroup comes up with the standard “slowdown is being led by high-income consumers” boilerplate language. This is why savvy buy-siders largely ignore the analysis of the traditional sell-side community (and instead use folks like Ms. Weinswig for her “access to management”).

Conversely, Craig Johnson espouses a more plausible scenario…warm weather in the winter/spring skewed results earlier in the year and we’re now seeing some separation between the winners and losers. That, my friends, is a more intellectual and thought provoking perspective on the retail sector today.
Date Published: Wednesday, June 27, 2012
Source: WWD

China’s E-Commerce Potential Seen Greatest Click to Open PDF

After having visited Muscat, Oman 25 years ago when in the U.S. Navy, I’m personally having a difficult time believing Oman is ranked #10 here…especially since “road infrastructure” is a big attribute being evaluated for this particular study.
Date Published: Monday, June 25, 2012
Source: WWD

Best Buy Founder Weighs Buyout Click to Open PDF

Just what BBY needs, the guy that was responsible for a lack of major strategic changes and running the brand into the ground privately declaring that he needs to come back because major changes are needed to preserve the value of his holdings. Good grief.
Date Published: Tuesday, June 26, 2012
Source: WSJ

Wal-Mart Beats Amazon Prices Including ‘Glee’ DVD Set Click to Open PDF

Is WMT beginning to fight back? Early concerns for AMZN? It’s worth noting that WalMart.com still only generates less than 2% of WMT’s total U.S. sales.
Date Published: Friday June 22, 2012
Source: Bloomberg