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Jefferies & Company managing director Daniel Binder on whether you should invest in Target and Wal-Mart.
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And -- thanks Sandra -- -- -- on the heels of good retail sales numbers for July target -- have a strong second quarter wal mart's numbers are expected tomorrow.
Before the -- also should you go shopping for these retailers and have them to your portfolio joining us now is Dana -- managing director at Jefferies company Daniel thanks for joining us let's jump right in.
-- do you like target more or less since the earnings call.
-- like target more we like it before the call we like it since the call they raised guidance on the year.
Management sound very upbeat said early back to school -- looking good and they're on plan in August thus far.
While she would -- your position here.
Yeah I -- I would yes.
-- insider.
Or change your mind about what you expect to hear from Wal-Mart tomorrow.
-- Wal-Mart is.
Presented several times in the quarter they've been very optimistic around the strategies to drive.
Traffic I think that's been fairly reflected in the stock and expectations are pretty high gone into tomorrow's and they really need to deliver.
Yeah it can go next target for a second it reported a 3% increase in July for same store sales what is working for them right now.
Well they've got to in in a little unit growth environment.
That -- the Lowe's store growth environment they've really been focused on driving traffic.
And loyalty through different initiatives including their 5% off program.
-- debit or credit card holder target I get 5% off everything every day to give way to drive loyalty and traffic and that's coming through the numbers.
Everybody loves target I -- whether it's investors shoppers is there anything they could do that would tripped them up at this point do you have any concerns.
Well.
I would I wouldn't say everybody loves them I mean I think he had a -- way it goes quarter to quarter depending on how comp store sales happen to be trending in that particular moment in time but.
You know in terms of what they're doing I think their strategy is sound.
Obviously there are vulnerable to the broader economic.
It's inflows their core customers pretty represented represented by by middle America if you will.
And you know things like higher gas prices could impact them but I think when you look at the company specific initiatives.
That they are on target.
And on Wal-Mart what would be your first question on their call tomorrow what what is interesting to you about the company or concerning.
-- I think the you know we've -- Wal-Mart -- last.
A year or so is Ed that a lot of skews.
Or inventory if you will items that they had taken out.
That had previously heard them now it's helping them I think the first question I would have is as we start to -- that had back.
How do you keep comp store sales going.
Yet what your -- real quick Wal-Mart before the college -- it ahead of their earnings report.
But I think there's a lot in the numbers already I think if you're a long term hold long term holder you can hold it into the press release.
At this point I think that the sales really need to beat the high end -- plan are better.
To keep the stock moving higher and even -- that I would expect.
Probably less than a 5% move in the stock.
Even on a good -- -- a good friend -- data better thanks for joining us.
