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MKM Partners retail analyst Patrick McKeever and J Rogers Kniffen WWE CEO Jan Rogers Kniffen give their take on the state of retail.
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And -- move on -- some of the nation's biggest retailers reporting may sales numbers.
Overall good but a bit of a mixed bad -- sweat and equity analyst at Morningstar breaks it down for us.
Paul let's start what Nordstrom and Saks -- too high end brands and they did better than expected right.
Yet hope those chains did better than expected and -- in particular -- -- comp was only up war they were laughing at 20%.
Gain last year.
So again on an EU thirty year over year basis -- those -- had tough comparisons.
So they're they're -- are pretty positive and they still did pretty well despite the the tough comparison that you've got a hold on sax you've got out.
Basically kind of a -- on Norstrom let's move on that calls you've got a -- on that stock but -- did not do well is that right.
Yes and one of the things we tried ad buys stocks when -- when everybody else hates them so right now are pretty hates colds and the reason is because they did at negative in that.
In April and now they got even more negative with a negative 42 in May on an easy comparison of only zero point eight.
Gain last year so really the market's betting you don't think they're gonna get worse before they get better -- -- I actually like the stock just because they make a great return on capital they actually have the highest operating margins in the department's purpose.
Right now they've lowered their prices but there about 5% of their inventories down 5% does that get 10% headwind on their comps.
And they did -- negative four in April.
So that's overall Kana OK and what about may see downtown Macy's had some 40% jump and online sales what -- just discover the lab.
Act act back.
Well -- they've actually been doing strong online sales you know 3040 and 50% in the fourth quarter last year so.
Ironically -- -- me you know really big gains on line with more big gains.
Last -- about 1% of salad and they're gonna move up to two billion dollars in total felt on line in 2012.
But you may -- this still just rolling out its online sales capability and integrated inventory.
And shipping from stores all its -- -- -- not even half way there yet.
I think that can actually continue for the -- the years.
Men -- -- the little bit undervalued I think it's actually gonna continue -- that the safer bet alright now let's go to JC Penney.
Here's your penchant for abuse stocks and they fell lot of bad they've been punished for it but you like giving you say they're got to right this -- Yeah I I was kind of negative when they first announced their Ron Johnson land and I fed you know what can Ron Johnson do this is not apple.
-- visiting the stores I think they've really made a lot of changes very quickly and it's just gonna take time to connect to the customer.
For the big differences.
You don't -- as CEO of red -- 80% off when you walked into the -- you've got to find something you light.
And then discover what the prices.
Eventually I think they will -- the customer off of that crazy promotional cadence that they were on before.
I just think it's gonna take time.
That the problem is here investors saying well that's gonna take time -- I'd buy it in six or nine months off.
I -- I can't -- -- disagree with that but at the same time the stock surely cheaper point six but I think it's worth 38 dollars okay.
All right thanks for -- -- let's just hear one last thing though I never given up those discounts thank you Paul split with morning star Sheryl.
And just saying -- -- now thank you.
