(Image: TMO news)

BY DAVID EARL

It turns out Walmart didn’t have such a happy holiday after it got done counting all of its Christmas cash. While the mega-retailer sold more stuff this holiday season, it didn’t make the post-holiday profit Wall Street was expecting. Bloomberg has the headline...

“Fourth-quarter earnings came up short of estimates, the world’s largest retailer chain emphasized low prices during the final three months of the year, and that did hurt their margin.”

Forbes seems surprised that the retailer known for those always low prices didn’t have a better showing in what was supposed to be another recession-filled holiday shopping season.

“Conventional wisdom says retail giant Wal-Mart should thrive amid slower economic growth as consumers look for the best prices and one-stop shopping.”

The news out of Walmart wasn’t entirely unexpected.  The Wall Street Journal cites a campaign by the company to win back market share after sales dipped the past few years.

“What we saw today is that Walmart is winning back that market share, but it’s coming at a cost in that its profit margins are going down.”

So Walmart sells more but makes less. But to make things weirder...luxury retailer Sak’s Fifth Avenue and kind-of-luxury retailer Macy’s each had one heck of a holiday. Here’s the deets on their earnings from Barron’s.

“Macy’s posted EPS of $1.70, which was higher than its own guidance range of $1.63 to $1.65 and analysts expectations for $1.65. Same store sales rose 5.2% in the quarter, [while] Saks rode strong luxury spending to a better than expected quarter, posting 17 cents of EPS, three cents ahead of expectations.”

So it’s the tale of two holidays, for two different types of retailers. Shares of Macy’s and Sak’s finished higher in Tuesday trading. Walmart shares plunged 15 percent. 

The Two Tales of Holiday Retail

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Feb 22, 2012

The Two Tales of Holiday Retail

 

(Image: TMO news)

BY DAVID EARL

It turns out Walmart didn’t have such a happy holiday after it got done counting all of its Christmas cash. While the mega-retailer sold more stuff this holiday season, it didn’t make the post-holiday profit Wall Street was expecting. Bloomberg has the headline...

“Fourth-quarter earnings came up short of estimates, the world’s largest retailer chain emphasized low prices during the final three months of the year, and that did hurt their margin.”

Forbes seems surprised that the retailer known for those always low prices didn’t have a better showing in what was supposed to be another recession-filled holiday shopping season.

“Conventional wisdom says retail giant Wal-Mart should thrive amid slower economic growth as consumers look for the best prices and one-stop shopping.”

The news out of Walmart wasn’t entirely unexpected.  The Wall Street Journal cites a campaign by the company to win back market share after sales dipped the past few years.

“What we saw today is that Walmart is winning back that market share, but it’s coming at a cost in that its profit margins are going down.”

So Walmart sells more but makes less. But to make things weirder...luxury retailer Sak’s Fifth Avenue and kind-of-luxury retailer Macy’s each had one heck of a holiday. Here’s the deets on their earnings from Barron’s.

“Macy’s posted EPS of $1.70, which was higher than its own guidance range of $1.63 to $1.65 and analysts expectations for $1.65. Same store sales rose 5.2% in the quarter, [while] Saks rode strong luxury spending to a better than expected quarter, posting 17 cents of EPS, three cents ahead of expectations.”

So it’s the tale of two holidays, for two different types of retailers. Shares of Macy’s and Sak’s finished higher in Tuesday trading. Walmart shares plunged 15 percent. 

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