Reply #12: Wal-Mart and the Retail-Stock Markdown [View All]

[ozymandius]

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The world's largest retailer had looked like it was actually benefiting from the economic slowdown as consumers flocked to its low-priced offerings. Wal-Mart's stock posted a gain in 2008, one of just a handful of large-company stocks to do so.

But on Jan. 8, Wal-Mart warned that fourth-quarter profits could be 12% below previous estimates. December same-store sales, which had been rising strongly as consumers sought out deals, missed expectations by rising only 1.7% in the U.S.

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Higher-end retailers were hit hard. Saks (SKS) last month saw same-store sales drop 20%. Abercrombie & Fitch (ANF) posted a 24% plunge in same-store sales.

At Sears' (SHLD) Kmart chain, December same-store sales fell 1.1%, but the chain's domestic same-store sales was off 7.3%.

Nordstrom reported a decline in same-store sales of 10.6% in December.

http://www.businessweek.com/investor/content/jan2009/pi2009018_275086.htm?chan=investing_investing+index+page_top+stories