U.S. Aug. retail sales up 2.7% vs. 2.3% expected

[S2007S]

Quote from Kassz007:

The fact that retail sales didn't decline is bullish. Bears are convinced of a horrible Q4 for retail. Me? Not so sure...

Okay here is something really simple to understand, yes sales are higher in retail, BUT I think you do NOT understand that the products these retailers are selling are being sold with a decreased margin. Tell me how well there profits are doing year over year with a decreased margin.

Just take a walk around a mall and notice that in EVERY SINGLE window there is at least a 20% discount to actual signs that read every must go because they ARE GOING OUT OF BUSINESS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

 

[Free Thinker]

Quote from S2007S:

Okay here is something really simple to understand, yes sales are higher in retail, BUT I think you do NOT understand that the products these retailers are selling are being sold with a decreased margin. Tell me how well there profits are doing year over year with a decreased margin.

Just take a walk around a mall and notice that in EVERY SINGLE window there is at least a 20% discount to actual signs that read every must go because they ARE GOING OUT OF BUSINESS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

maybe but the strength in retail stocks is signaling something.

 

[ASusilovic]

Quote from Ivanovich:

I love this stat. I'll bet we could get home sales to go up that much if we subsidize the purchasing with government handouts.

Oh, crap. Wait...

Daimler Europe August sales - 25.5 %.

Green shoots.

 

[Ivanovich]

Are you saying

-25% or is that a dash between the number and your sentence?

 

[Kassz007]

Quote from S2007S:

Okay here is something really simple to understand, yes sales are higher in retail, BUT I think you do NOT understand that the products these retailers are selling are being sold with a decreased margin. Tell me how well there profits are doing year over year with a decreased margin.

Just take a walk around a mall and notice that in EVERY SINGLE window there is at least a 20% discount to actual signs that read every must go because they ARE GOING OUT OF BUSINESS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

I don't agree with you that every single window has at least a 20% discount because they're going out of business. That's a statement that is simply false.

Prices have declined on some prodcuts, lowering margins, but who cares? Inventories are being depleted, factories are starting up again, and who knows? Maybe we'll have actual job growth in the future. For this to happen, we need retail sales. Which are increasing (or at very least not decreasing).