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Retailer Apocalypse
Dick’s Sporting Goods (DKS) was the latest in the retail to space to get hit by the Amazon.com (AMZN) phenomenon. Shares of the sporting goods retailer fell by over 23 percent on the day and are now down nearly 50 percent on the year. The company reported fiscal second quarter results that missed both and the top and bottom line. The stock took athleisure companies down as well, with Under Armour (UAA) and Nike (NKE), falling 3.25 percent and 2 percent respectively.
The retail space just continues to be a disaster, and the losses in the stock prices over the past 52-weeks are staggering. Shares of JC Penney (JCP) have declined by 65 percent, while Macy’s (M) and Sears (SHLD) are down nearly 50 percent. Staggering.
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Retail Sales
This comes in the face of strong July retail sales reported which showed month over month growth of 0.6 percent vs. expectations of 0.3%. Here are the most interesting facts, from the retail sales numbers. Clothing and Assesscory stores saw growth of +0.2 percent, Furniture and furnishing +3.8 percent, Electronic & Appliance -1.3 percent, Sporting Goods -4.9 percent, General Merchandise +1.0 percent. BUT…
Non-Store Retailers (AKA E-commerce) +11 percent.
….Amazon has been telling us that for some time now.
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Michael Kramer and the clients of Mott Capital own shares of ACAD & TSLA
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