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Retail Sales Plunge In Italy On Surging Unemployment And Lack Of Confidence: Example Of What US Looks Like Absent Stimulus
The traditional hot bed of haute couture and fashion retail is experiencing an unprecedented plunge in end demand as Italy, absent trillions in fiscal and monetary stimulus boosts, has become a prime example of what US retail would look like absent the generosity of the government and the Fed. According to this Bloomberg TV report, "sales are worse than last year and business is getting worse and worse. The situation is not good." Summer sales revenues are expected to be down 5% across the board. Another factor blamed for poor sales: the weak performance by the Italian football team, and the resultant glut of jerseys. And when Prada and Gucci are seen offering extra discounts just to get shoppers into the stores, the whole concept of ultrapremium retail goes out of the window, putting the "aspirational shopper" paradigm on hold.
Looking back at our own back yard, as a reminder, last week's domestic retail sales were rather weak across the board, primary driven by ongoing margin pressures. As BofA Jeff Rosenberg said:
Out of our 9 retail companies that report same store sales, TJX was the only oneto raise guidance. TJX guided to 2Q11 and FY11 EPS of $0.70-$0.73 and $3.24-$3.33, respectively, which was still below street estimates of $3.35. On the whole, exuberance over top-line growth was muted as a number of companies remarked that promotional activity caused margins to compress. We believe this helps to explain the lack of changes to EPS guidance. Promotional activity is likely to continue into H2-10 as retailers compete for relatively tight consumer dollars. Efficient inventory management will prove to be especially important as companies begin to cycle tougher comps amidst margin pressures. For July 2010, LTD and TGT guided to SSS increases of +MSD and +LSD, respectively. While consensus is looking for positive July SSS for most retailers, we note that expectations are moderating, owing to the recent spate of negative consumer-related macroeconomic data.
Here is a chart of monthly sales performance by store concept bucket:
And here is Bloomberg with the sad state of events in Italy:
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At least in Italy the rioters will be nattily attired. Is it hard to hurl stones in $500 tight leather pants? Stay tuned.
Hey, the nice young entrepreneurs looting Foot Locker in protest sure looked snazzy in their $200 Air Jordans.
If you disagree it must be because you're racist(TM).
The oft mentioned 70% US retail shoppers are either broke or scared.
2 words......
School Clothes.
A lot of parents are probably very worried about upcoming back to school costs. Clothes, shoes, bookbags, supplies, haircuts, physicals, class fees and lunch money. Parents will forgo new furniture and house repairs in order to make sure their childs needs are met.
Lucky, you are right in the fact that some parents are soooooo obsessed with their image as to forgo other items for their childrens' clothes. What money they do spend on clothes is going to be less than last year. The result, plunging sales continue.
Does Italy not have the largest gold hoard per capita of any country in the world ?
They should find a way to crash the paper price of gold to solve their problems
wake me up when the "extra discounts" go into effect at the liquor stores.
that is my hotbed of haute couture stateside.
No doubt, with online designer sites with 80% discount, who needs to buy in store???
When in Rome do as the Romans do,buy Gold.
Price of Parmigiano Reggiano is coming down...
And also the Barolo to drink with it.
2004 Stefano Farina $28.95 @winex.com
K&L is selling 92 pt. Super Tuscans for under $20
2006 Poggio Al Tesoro Mediterra
Careful Tyler. Italy can always cut off our supply of spaghetti westerns. Is that a bad thing?
If that is the case, maybe we can cut the vaseline supply to Greece for retaliation
The next stage of the game is the unseen pressure online shopping will place on value seeking brick and mortart and subsequently retail space and commercial real estate investments. Let's buy some REITs?
lol +100
Why do Italian men grow mustaches?
To look like their Mothers.
Good thing we have...
OLD FAITHFUL:
http://williambanzai7.blogspot.com/2010/07/wonders-of-world-of-fraud-old...
The De-Yuppification of Italy is underway. If it spreads to core Europe then can the UK be very far behind? Here in the US we're in a moment of indecision. But every passing day it seems like beamers, tasseled loafers, moussed hair and Armani suits are so old millennium.
Replaced by G IV, maserati , bironi/brunello cucinelli, and john loeb shoes.
The upper 1% have their standards. And with their recent increase in net worth courtesy of the other 99% of the US population, those standards are getting more expensive
Proving ad sense does in indeed have humor all ads today from Saks.....Christian Louboutin/Gucci.
There is no doubt that luxury has once again been top ticked with the recent announcement (once again) that Prada intends to go public.
140 million Euros lost due to missing jersey sales?
Now there is some news.
Overpriced jersey is now 80% off = actual value.
Slap the inside of the elbow real hard, it gets the veins to rise near the surface for injections and tie that band tight to bulge whats left.
The money junkie needs another fix.
Helicopter Ben and Uncle Barry are coming right up with the goodies.
It will help if you are loud, particularly pathetic or cuddly cute and persistent or the bastard spawn of a politician.
The big banks done stole the last of the money, we pissed our life savings away on big houses, vacations and restaurant living. The working man got sold out in the late 80's, the rest of us just lived off the residuals of the wealth created by our forefathers and the hard labor of people who took less than they gave to the system.
Universities now just spawn terrorists and idiot thinkers to lead us to the spectacular end of an ERA.
Feeling like an optimist today, just dug the root cellar a little deeper.
You were close. I spend 10 years wasting away life in a university. What they have really become are: 1. brain wash centers for future communists, 2. giant pyramid schemes for upper university administrators and 3. for the lucky wealthy kids, giant party zones.
Universities have no academic discussions or any kind of dissent. It is a monoculture to preserve those who benefit. It is not the average students, they are the losers. It is no mystery we get losers like Summers and Bernanke from such environments. Yes men to support the status quo.
People buy their clothes at outlets where everything costs 60% less. Some on internet, seems that Yoox is having success. And I don't know any men with moustaches or leather pants on either by the way. Remember that this is one of the best sites on the internet so don't stick stereotypes in your comments. I think Italy is very corrupt and deserves to go bankrupt, even if we have gold, we have a corrupt system which doesnt deserve to be saved, much more corrupt than the States. But let's clear some stupid comments from above. Most of the fashion clothing in the boutiques is sold to tourists really. Many italians buy during sales or in outlets, you only find the real fashon addicts in Milan and Rome. As for Parmigiano Reggiano, it is already sold at a very low price in Italy because there are bad imitations around like Parmesan (I think that is how you spell it) and other junk around which has ruined the foreign markets. Parmegiano Reggiano is the only cheese which people who cannot drink milk (because they dont tollerate it) can eat because it is easy to digest and has rare nutritional elements. if the price of Parmegiano Reggiano goes too low, many producers will have to close, and that's the end of Parmegiano. You cannot produce it elsewhere, only in the Parma area. I think that if the price of junk food went so low to drive the producers out of business would be good, but dont be happy when the price of quality products which come from a long tradition disappear because the price goes too low. what should be driven out of business are industrial food which has ruined millions of Americans.
rest assured, From Italy, that all smart ass comments here denigrating Italy are pretty much interchangeable with any country/person that is the flavour of the day to mock - if not Italy, then Greece, Spain, the UK, etc. etc. - it's just how ZH "rolls", eh.
it is sad to see yet another "unique" environment succumb to the bland corporate-style "nation state" environ, like the disney-fication of the world, everything must be mediocre and predictable, uniform. . . including corporate fud-stuffs, as GMO-produce, hormone & antibiotic pumped meats, and soon, codex alimentarius "rules" regulate everything edible. . .
Hey, Tyler. Can I autograph your cast after the Coleones bust your knee caps with baseball bats?
Don't worry as long as Giada's cans are still jiggling and she is still smiling, everything is ok.
More cheap chianti please!
Please, speak no ill of the girls.
It's going to turn out so much differently with stimulus.
www.deadmalls.com
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