From The Average Joe Investor
I don’t know that I’m all that pessimistic about the December retail sales, and, in fact, I think it could be creating some buying opportunities in the retail industry. Same store sales were up 3.1% over last December, which was no slouch of a Christmas season. Sure this is less than the 3.3% of 2005, but looking at the big picture, it’s still moving well in the right direction. Other than that – and this is something that others have also pointed out – online sales and gift card sales continue to rise. Neither of these contribute to the same store sales numbers that everyone is looking at – gift cards are only recorded when they are redeemed and online sales just get lumped into overall revenue.
I haven’t done my deep digging on it yet, but Limited Brands (NYSE: LTD) is one in particular that I think could have created a good opportunity. I remember thinking before Christmas what a great group of brands the company has. Vicky Secret is rock solid, Bath and Body works is a good one, and even Express seems to be getting itself back in order. I didn’t buy then, but now that it got hit for 7.5% after the sales numbers came out, well, it may just be time to start some diligence.
So maybe give retail another look right now while everyone is flicking their nose at it, and I’ll tune back in with more when I have some more.
-AvgJoe
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