Bill Dreher
Bill Dreher
chains department discount line mostly results sales
The sales results from the department and discount chains were mostly in line with expectations.
average believe benefit christmas consumer department exuberance gasoline higher irrational jobs shown stock stores suffer target worried
We believe our competitors have shown irrational exuberance with Christmas forecasts, ... We believe the average consumer is worried about higher gasoline prices, jobs and doesn't believe he will benefit from the stock market. With this climate, if you're just a 'me-too' retailer, you'll be in a world of hurt. The department stores will suffer but the discounters Wal-Mart and Target will do well.
brutal department stores throwing
As we get through the season, department stores are going to be brutal in throwing merchandise back to vendors.
brutal department focusing inventory looking promote rejecting shipments stores throwing
Department stores are already focusing on rejecting shipments from vendors that they ordered. They are also looking to promote inventory they already have in hand. As we get through the season, department stores are going to be brutal in throwing merchandise back to vendors.
alan bad confidence convinced dealing deceitful department feeling head hiding investor restore sounds tackling
He (Lacy) was dealing with a deceitful department head who sounds like he was hiding some bad news, ... Our feeling is Alan Lacy is being very forthcoming and straightforward with the problems, and is tackling them very aggressively. But we're not convinced that's going to be enough to immediately restore investor confidence in shares.
acquiring card companies continues cost credit department gross improved improving lowering margin problems retailers seeing stores strong struggle target turnaround
The companies that are seeing strong gross margin improvements are getting it not from improving their merchandising mix, but from improved buying. Retailers like Wal-Mart and Target are lowering their cost of acquiring products. Sears on the other hand, continues to struggle with the turnaround of its department stores and problems with its credit card unit.
admit clearly comparison department direct job quite stores talked
All the department stores we talked to admit quite clearly it's an unprecedented environment, and they have no direct comparison in being able to plan. It makes their job very, very difficult.
considered far financial impact item limited
It would be considered a non-operating item and really will have a very limited financial impact as far as analysts are concerned,
accept annual clear closer deep false management meeting might sober though willing work
It was very clear to us that ... this year's annual meeting had a new, more sober tone. In the past, (Wal-Mart management) was willing to accept their shortcomings, though some might say it was closer to false modesty. This year, it was very clear that management realizes they have a lot of work to do and are deep into the transition.
appears form holiday season
The shopper appears to be in mid-season form with the holiday season just having started.
concerned economy investors stock weaker
The stock is manipulated by perceptions of the future, and investors are very concerned right now that the economy is weaker than we thought. Wal-Mart is doing a superb job. On other the hand, the stock is vulnerable.
admittedly admitting cloudy critical holiday investors might second though visibility
They are admitting they have very cloudy visibility on the very critical holiday season. What might be more significant to investors is that even though they had an admittedly superb second quarter, where are we going from here?
buying christmas circle clearly confidence consumer decadent depress depressing four generous gift giving hog holiday issues levels numbers people presents question return shows spending three wide year
The same issues which are depressing the consumer confidence numbers are going to depress holiday sales, ... Christmas is going to show up this year as it shows up every year. The question is, how generous are people going to be? Are they going to go whole hog and return to the decadent spending levels of three or four years ago? No, clearly not. People are going to be buying toys, but how many presents they buy, how wide that circle of gift giving is really is in question.
absorb definitely others period position retailers though tough
Even though Wal-Mart is definitely in a better position than most retailers to absorb any shortfalls, others could be in for a very tough period ahead.