India  
NewsR.in
> >

The Year Without a Santa Claus: Why 2019 Holiday Sales Could Disappoint

Video Credit: The Street - Duration: 01:27s - Published < > Embed
The Year Without a Santa Claus: Why 2019 Holiday Sales Could Disappoint

The Year Without a Santa Claus: Why 2019 Holiday Sales Could Disappoint

Many see the consumer as strong currently, but we're about to get an honest check on that as holiday sales roll in for the season.

Goldman Sachs retail analysts say the holiday season could be a disappointment for retailers.

In 2019, it has been the consumer, which accounts for the majority of U.S. GDP, that has upheld economic growth in the world's largest economy.

In September, the consumer showed signs of weakness, as retail spend data showed a 3% decline in spending for September year-over-year.

This badly missed estimates of 3% growth.

Now, the always-telling holiday season is upon retail investors.

But Goldman cites a more benign reason for its warning.

"Although recent spending momentum seems supportive of a healthy holiday season in 2019, our analysis points to potential headwinds from a shorter holiday calendar, especially when examining retailer results in prior periods when this dynamic transpired," the Goldman analysts wrote in a note out Monday morning.

They mentioned that there will only be 26 days between Thanksgiving and Christmas in 2019, versus 32 days in 2018.

Goldman pointed to 2013 as a potentially representative year for predicting holiday sales in a short season.

That year, the seasons was short and results were "challenging, the analysts said.

Specifically, Walmart , Target and Macy's and Nordstrom reported a "deterioration" in same-store-sales for the fourth quarter.

The analysts also noted income growth that year was "anemic," largely the opposite of what 2019 has seen out of wage growth.

The National Retail Federation, unlike Goldman, is expecting strong results.

The NRF predicts between a 3.8% to 4.2% year-over-year increase in holiday sales for 2019, against the five year average increase of 3.7%.

The NRF expects sales to total $727 billion and $730 billion.

"The U.S. economy is continuing to grow and consumer spending is still the primary engine behind that growth," said NRF President and CEO Matthew Shay.

Shay also mentioned consumer is facing risk as the global economy slows and, as the trade war remains a considerable worry, consumer confidence could see a downward jolt.

In addition to the stocks Goldman mentioned, here are some other notable holiday stocks to watch: Amazon Etsy MasterCard American Express Apple LVMH Amazon, Apple and MasterCard are holdings in Jim Cramer's Action Alerts PLUS member club.

Want to be alerted before Jim Cramer buys or sells those?

Learn more now.

0
shares
ShareTweetSavePostSend
 

You Might Like


Tweets about this


Recent related videos from verified sources

CBS Holiday TV Special Schedule Released; Here’s When Rudolph Airs [Video]CBS Holiday TV Special Schedule Released; Here’s When Rudolph Airs

Ready for the most wonderful time of the year? The 2019 CBS holiday special schedule is out, so mark your calendars for beloved TV classics like “Rudolph The Red-Nosed Reindeer” and “Frosty The..

Credit: CBS Dallas Digital     Duration: 00:40Published

3D Origami Christmas Santa Claus  | How To Make Origami Santa Claus | Christmas Origami | Santaclaus [Video]3D Origami Christmas Santa Claus | How To Make Origami Santa Claus | Christmas Origami | Santaclaus

Welcome to USP Origami Studios In this video we will be teaching everybody how to make 3d origami santa claus at home in easy steps possible. Santa Claus, also known as Saint Nicholas, Saint Nick, Kris..

Credit: USP Crafts Studio - How to DIY     Duration: 03:38Published

Environmentally friendly: newsR is hosted on servers powered solely by renewable energy
© 2019 newsR Ltd. All Rights Reserved.
About us  |  Contact us  |  Disclaimer  |  Terms & Conditions  |  Content Accreditation
 RSS  |  News for my Website  |  Free news search widget  |  In the News  |  DMCA / Content Removal  |  Privacy & Data Protection Policy
How are we doing? FeedbackSend us your feedback  |   LIKE us on Facebook   FOLLOW us on Twitter  •  FOLLOW us on Pinterest