10 Shopping Days Until Christmas

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By Douglas A. McIntyre Updated Published
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The race that began at the start of November, peaked on Thanksgiving — or Black Friday or Cyber Monday — is nearly over. Only 10 shopping days remain until Christmas. Among the retailers and shipping companies, the home stretch could be the difference between a good holiday, a mediocre one or a disaster.

United Parcel Service Inc. (NYSE: UPS) and FedEx Corp. (NYSE: FDX) are bound to do well no matter what. Along with the U.S. Postal Service, they have a monopoly. Hundreds of millions of packages will pass through their hands. Market share is important, but the market is massive.

Amazon.com Inc. (NASDAQ: AMZN) will have a spectacular quarter no matter what. The problem is that management has already flagged that it will not make money. Investors are more than annoyed about this and have driven the stock down, because of a very few words from management when it posted its most recent quarterly results:

Fourth Quarter 2014 Guidance

  • Net sales are expected to be between $27.3 billion and $30.3 billion, or to grow between 7% and 18% compared with fourth quarter 2013.
  • Operating income (loss) is expected to be between $(570) million and $430 million, compared to $510 million in fourth quarter 2013.

ALSO READ: Walmart Cuts More Prices

In the meantime, Amazon has cut prices, particularly on its failed phones and troubled tablets. The price for the Fire HD7 has been chopped from $139 to $114. Amazon will take the lion’s share of 2014 online sales but could still be the goat on Wall Street.

For several retailers, this holiday could be the watershed for viability. Without any question, this applies to RadioShack Corp. (NYSE: RSH), the shares of which have traded below $1 for weeks. The company disclosed when it posted earnings this week:

Joseph C. Magnacca, chief executive officer, said, “Overall our sales for the quarter declined 16.1 percent year over year, including a comparable store sales decline of 13.4 percent. This primarily reflected challenges in the postpaid mobility business. However, in our retail segment, the other half of our business, comparable store sales at U.S. company-operated stores were only down 2.0 percent compared to last year, and improved throughout the quarter as we focused on higher margin products, including private brand, and innovative new programs like Fix It Here. Moreover, our core network of “Interactive Remodel” stores collectively performed 12 percentage points better than the total chain on a comparable basis, and in the retail segment performed almost 15 percentage points better on a comparable basis.

While the retailer’s management wants to close more than 1,000 stores, its lenders have pushed it hard to close fewer. There is plenty of speculation that RadioShack will file for Chapter 11.

ALSO READ: 10 Brands That Will Disappear in 2015

In shape to hold on through the holidays, maybe, are J.C. Penney Co. Inc. (NYSE: JCP) and Sears Holdings Corp. (NASDAQ: SHLD), which has Sears and Kmart stores under its umbrella. Each company has enough cash to make it into 2015. How far into the year is another matter, especially if holiday sales are a disaster.

Merry Christmas.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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