Jan 10, 2020

Retail's rough post-holiday ride

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Data: FactSet; Chart: Axios Visuals

The U.S. stock market rose broadly on Thursday, but a number of retail stocks went south after companies revealed distressing news about their holiday sales.

What happened: J.C. Penney and Kohl’s reported lower sales during the critical months of November and December, and Macy's announced poor holiday sales and the closure of several stores.

The intrigue: All three counted significant losses to their share prices, but nothing compared to Bed, Bath and Beyond, which saw its stock fall 19% during yesterday's session.

  • BBBY said its fiscal third quarter sales were significantly impacted by the calendar shift of Thanksgiving that resulted in one less week of holiday sales and it withdrew its 2019 fiscal year guidance.
  • The company said it expects sales and profitability to remain subdued.

Flashback: We reported in November that BBBY was one of a handful of retail giants that has refused to accept tariff price increases from their brand suppliers, telling the companies they will have to either eat the tariff costs or find another buyer.

Go deeper: The year of the mall makeover

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Macy's to close 125 stores and cut 2,000 corporate jobs

Photo: Joe Raedle/Getty Images

Macy's will close 125 department stores, one-fifth of the retailer's overall footprint, and ax about 2,000 corporate jobs over the next three years, the Wall Street Journal reports.

Why it matters: Department stores such as Macy's have struggled to keep up with e-commerce giants like Amazon, especially over the recent holiday season. Macy's and other department stores are still recovering from rocky end-of-year sales.

Apple shares surge after it posts record holiday sales

Photo: Apple

Buoyed by strong iPhone sales and a growing services business, Apple reported record quarterly revenue and profits that were well ahead of estimates and its own forecasts. Apple also projected revenue for the current quarter ahead of many analysts' expectations, sending shares higher.

Why it matters: The October-to-December quarter includes the all-important holiday shopping season, and Apple's results show the resiliency of its business.

Go deeperArrowJan 28, 2020

Sluggish sales throw the future of electric vehicles into uncertainty

Illustration: Aïda Amer/Axios

The flurry of high-profile electric vehicle rollouts lately makes it easy to look past a big problem for the sector: tepid consumer demand means it's unclear when the EV age will begin in earnest, at least in the U.S.

Driving the news: Several recent stories underscore how drivers remain cautious about ditching gas pumps for plugs — even as automakers make big bets on bringing a slew of new models to market.

Go deeperArrowJan 22, 2020