5 New Signs the U.S. Consumer Is Still Struggling
NEW YORK ( TheStreet) -- A full week removed from a stronger-than-anticipated employment report for June and ahead of the pivotal back-to-school selling season, there are signs the U.S. consumer is struggling more than believed.
The Consumer Discretionary Select Sector SPDR ETF
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Walmart's U.S. president sounds the alarm: "It's really hard to see in our business today ... that it's gotten any better," said Walmart
The comments from Simon run contrary to what he said company's May 15 first-quarter earnings call. Simon said in May that Walmart has "solid business fundamentals and anticipate our recently launched initiatives and continued price investment will resonate with the customer."
Same-store sales, more than meets the eye: Of the eight retailers that reported June same-store sales, only teen apparel retailer Zumiez
Container Store coins the investor catchphrase of the summer: "Consistent with so many of our fellow retailers, we are experiencing a retail funk," said Container Store
Shares of Container Store have declined this week by about 18%.
Lumber Liquidators drops the hammer on investors: The second-quarter business update on hardwood flooring supplier Lumber Liquidators
Robert Lynch, president and CEO of Lumber Liquidators, said "customer traffic to our stores was significantly weaker than we expected" and "the improvement in customer demand we experienced beginning in mid-March did not carry into May, and June weakened further." Lumber Liquidators guided the market to two things one never wants to see at a retailer: declining same-store sales and contraction in gross profit margins.
According to Lumber Liquidators, gross margin "contracted due to adverse net shifts in sales mix and greater discounting at point of sale." Same-store sales for the company's second quarter are projected to fall 7.1%, in stark contrast to the 14.9% increase a year earlier.