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Well what got it all started today were those retail sales they rate rose more than expected in May posted their strongest performance in three months but excluding autos sales taking auto sales out of -- the -- retail number.
Really only met expectations so what does this say about consumer spending.
Joining us now is large champ time.
Canaccord you know woody managing director and senior retail analyst at guru in retail sales Laura good to see you thanks for coming in -- what do you make it's.
-- -- So today's numbers were in line which is good news were showing some growth most of the individual retailers we follow are showing an improvement in May over April.
Which is a good sign as we head into the summer months sometimes you get a -- retail stocks but obviously not today strong -- but you take out those car sales and they're not as strong as we thought at first.
Right so the headline number impacted stocks when you strip out the the autos and the gas to get about thirty points of growth sequentially.
It was enough today obviously not boom times but a steady recovery good enough to hold up these multiples are right now.
There is one issue we -- about what it's affecting retail says or might.
The Internet sales tax how is that gonna work into the mix of retail sales.
Tough to say is is you know it's it's been an item up for debate for awhile to try to make -- retailers with still bricks and mortar boxes more competitive.
The consumer is shifting spending online some of the stocks we like we just brought a big report -- I'm -- Sonoma.
The reason we like it is that over 40% of sales are on line.
Bed, Bath & Beyond just had a new web -- out today the first new platform -- the baby line since 1999.
E-commerce is going to be important no matter what happens on the other hand you look at Bed, Bath & Beyond and that's one of the stocks we wanna talk about.
This probably the Internet sales tax helps because they have so many so many brick and mortar offices right.
We would estimate e-commerce is still only about 2% of sales we think they're trying to build a platform to get attend but that still leaves ninety -- that that this -- in the store.
Let's look at cons for a second because we can't talk about crimes and whether or not it's a good -- -- not now without.
Noting it's meteorological.
Rise I mean it's just a huge rocket shot it's up 370%.
In the past twelve months hasn't reached its limit it.
It's still our favorite stock we still think that our numbers are conservative.
And -- fifteen cents ahead this year in 41 cents ahead of consensus next year this company is executing on all fronts showing enormous sales and margin growth.
To frame it up for you and may their same store sales grew 18% on -- 24 year.
This this is a one year chart and yes that's not a misprint or editing it started a year ago is trading at fourteen dollars a share.
It's now 52 when your price target is 66 -- 66 and the price today is still fourteen times our earnings estimate for next year.
This company's growing earning 7% this year we think we'll do another warning next year okay sort of the reverse about the mirror image of -- is princess whose holdings because that has not had the jump up the most stocks have had the past twelve months.
It's basically flat when you look at its position from a year ago but you think it's a buying.
Well -- once again the multiples gotten a little more reasonable sixteen times next year stock took a big step back after reporting disappointing sales in Q1.
We think most of that was weather related they also saw a little bit of a recovery in May sales.
That's a growth retailer similar to cons which -- double maybe triple its store count before all is said and done.
-- you were great your terrific thank you so much for coming in -- should apply.
Canaccord -- knew woody managing director and senior retail analyst please come back thank you thanks.
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