In Australia, retail sales rose by +0.9% month-on-month in May to AU$34.2 bln, topping market forecasts and matching the April gain. This was also their fifth straight month of growth, as the Aussie economy recovered further from pandemic disruptions. The rise from a year ago exceeded +10%, handily beating inflation. Department stores had the largest month-on-month rise, up +5.1%, followed by cafes and restaurants. Given Australian consumer sentiment is low, this free-spending is a puzzle - not too dissimilar to the same track in the US. Makes you suspect "sentiment" is now hijacked as political, whereas the spending track tells the real economic story.
wonder when whats happening in the US feeds thru to aus/nz
High-end furniture chain RH on Wednesday slashed its outlook for 2022 revenue, anticipating consumer demand for its products will continue to soften in the back half of the year.
“With mortgage rates double last year’s levels, luxury home sales down 18% in the first quarter, and the Federal Reserve’s forecast for another 175 basis point increase to the Fed Funds Rate by year end, our expectation is that demand will continue to slow throughout the year,” CEO Gary Friedman said in a statement.
The Kanga's addicted to retail spending after 2 years of stay and play at home.
Winner(n) 6 percent up but what portion is inflation.
Its the Margins that will be hit? and therefore DIV a constant if investors are lucky.
P/E are still above average long run AVE?
Margin hit --- waltz me old mate you've got to stop reading all that stuff in the media (esp CNBC ).... worse still you're being swayed into believing it
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Retail in Aussie really booming ---- 6% ahead on last year
The chart below is total sales less food (sort of proxy for discretionary spend) over the last few years
Seems to be at odds with a lot of the commentary about the state of retail over the ditch
yep retail is booming but not retail stocks
heres a combined chart or index of the major aussies retail stocks . you can see they are not reflecting the boom in sales. guess stocks are forward looking
Now smart charts with events when transactions are processed automatically do the stats for P&L accounts.
Companies with these types of transaction processing systems will know the margins instantly in real time.
Companies without these systems will not.
Lets wait and see what the internals on the P&L spit out...
Originally Posted by Waltzing
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).... worse still you're being swayed into believing it
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