Thursday, October 15, 2009

Don't We Just Love Shoes?

I don't know about you. I , for one, am a little tired of all these big banks' earnings this week. Instead of going through numbers of Citigroup and Goldman Sacks that reported earnings today, I turn to off-beat news like" DSW raises outlook as sales improve".

"The company said it now expects earnings of 70 cents to 80 cents per share for its year ending in January, up from a previous forecast of 37 cents to 45 cents per share, issued in August. Excluding one-time items, analysts polled by Thomson Reuters expect a profit of 44 cents per share. This is the second time this year that the company has raised its outlook.

The company said it anticipates sales at stores open at least a year, a key measure of a retailers financial health, will climb 6 percent to 8 percent in the third quarter ending Oct. 31, partly on increased traffic.

The company expects flat full-year sales at stores open at least a year, compared with previous expectations of a mid-single digit decrease.

Despite a strong third-quarter outlook, DSW said it remains cautious about the fourth quarter and believes the economy will remain "challenging."

While top retailers managed a gain in September for the first time in more than a year, analysts said shoppers still expect discounts and bargains. Analysts said that could mean a slow recovery overall for retailers and the economy."
Despite the downbeat tone at the end of the news, it did sound a tune of "cautiouly optimistic". The optimism is not just DSW, it's shoes. When you look at the stock of shoes such as SHOO, SKX,NKE,KCP, DECK, almost all of them are not far away from 52-week high with SHOO not too far from all-time-high.

I guess for those who still think it's the end of retail, it's the end of spending, it's the end of capitalism, let's remember what Carries once said when she was purchasing a pregnancy test kit with Miranda.

Carrie: Which kind do I get?

Miranda: Here. This one's on sale -- half-off.

Carrie: I just spent $395 on a pair of open-toed Guccis last week. This is not the place to be frugal.

Disclaimer: Stocks/financial instruments mentioned in this blog are not to be taken as investment advice/recommendation. Readers must consult their own financial advisors and/or consider their own risk/reward profile before making investment/trading decisions. The blog author is not liable for any investment/trading decisions of readers should readers decide to base the decisions on information provided by the blog.

Disclosure: The blog author does not own any of the above mentioned stocks in her personal account as of October 15,2009

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