Choosy Shoppers Choose

It appears retail shoppers are becoming more particular and stingy about what they are spending their dollars on during the last month or so. Over the last few weeks, I have noticed that apparel retailers are reporting lower sales figures while others seem to be holding in just fine. Several of the big department store retailers are also showing slowing sales. I must admit, I have never been a big supporter of department stores or apparel companies because of the fickleness of consumers. Changing fashion trends is not a subject I feel comfortable forecasting even with a wife and three daughters. So, I will leave that game to others and try to make sense of a few specialist retailers that have longer term trends to analyze.

This week we will get reports from Lowe’s and Home Depot that should provide a good clue if consumers are truly pausing or just shifting their priorities to their home rather than their clothes closet. My bet is that they are indeed spending more on their home and becoming a little more discriminating about personal expenditures.  And, if we think about what products should be selling well at these DIY retailers, it makes sense that Masco Corporation that makes many of the products in your home should also be doing well.

Aside from these DIY retailers, I think we are safe believing that consumers are still addicted to their Starbucks and Dunkin Brands coffee. And, monthly sales have also been consistent at Costco and Five Below Inc. which should be able to keep their positive trends going through August and September. The only retailer that I like that gives me a little trepidation is Dicks Sporting Goods which reports their quarterly results on Tuesday. While one quarter does not make or break a retailer, a poor sales outlook will be an important indicator through the next two/three months. We wait with bated breath for signs of better sales ahead.

Summarizing, during a quiet week in August we cannot make too much of the action and reaction of many of the top retailers. However, I believe that consumers are becoming choosy about their dollars and will continue to buy what they need rather than something they can easily push off until next month or next year.

Have a great week and go buy some sneakers at my favorite sporting goods store.

 

Roger N. Steed

August 19, 2013

 

KRS Capital Management, LLC (“KRS Capital Management” or “Adviser”) is a fee-only Office of Financial and Insurance Regulation registered investment adviser located in the State of Michigan. KRS Capital Management does not receive any compensation from any of the mutual fund companies, brokers or entities connected with securities mentioned herein. KRS Capital Management and its representatives are in compliance with the current notice filing requirements imposed upon the Office of Financial and Insurance Regulation registered investment advisers by those states in which KRS Capital Management maintains clients. KRS Capital Management may only transact business in those states in which it is notice filed or qualifies for an exemption or exclusion from notice filing requirements.

KRS Capital Management’s newsletter services are limited to the dissemination of general information that is financial and/or investment related to United States residents residing in states where providing such information is not prohibited by applicable law. Accordingly, the content in this newsletter should not be construed by any consumer and/or prospective client as KRS Capital Management’s solicitation to effect or attempt to effect transactions in securities or the rendering of personalized investment advice for compensation via this medium. Furthermore, the information resulting from the use of data or other information in this newsletter should not be construed, in any manner whatsoever, as the receipt of, or a substitute for, personalized individual advice from KRS Capital Management. Any products mentioned in this newsletter may not be eligible for sale in some states or countries, and they may not be suitable for you. Before buying or selling any mutual fund, exchange-traded fund, security, or investment, read the prospectus carefully. KRS Capital Management is neither an attorney nor an accountant, and no portion of the web site content should be interpreted as legal, accounting or tax advice.

*KRS Capital Management’s newsletters may contain opinions and statements concerning or related to securities and investments. The Adviser does not represent, endorse, or warrant the timeliness, sequence, accuracy, or reliability of any such information. Certain portions of KRS Capital Management’s web site and publications (i.e. newsletters, articles, commentaries, etc.) may contain a discussion of, and/or provide access to, the Adviser’s (and those of other investment and non-investment professionals) positions and/or recommendations as of a specific prior date. Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). Moreover, no client or prospective client should assume that any such discussion serves as the receipt of, or a substitute for, personalized advice from the Adviser or from any other investment professional. Where individual companies or types of investments are named herein, it is for representational examples only are not in any way to be construed as securities recommendations. KRS Capital Management cannot and does not give any assurance that the companies that may be included in our newsletters, present or future, will be profitable. Owners and staff members of KRS Capital Management may own various investments (included those that may be listed in our newsletters). Any one or more of their positions may not necessarily be the same as that of a client of KRS Capital Management. The owners and employees of KRS Capital Management may also for their own accounts buy, sell, or hold long or short positions in mutual funds, exchange-traded funds, common stocks or other securities of companies mentioned in the Adviser’s publications. Investments carry an inherent element of risk, including the potential for loss of principal. Please seek personalized and professional assistance from your personal fee-only Registered Investment Adviser before making investment decisions.

A copy of KRS Capital Management’s current written disclosure statement discussing KRS Capital Management’s business operations, services, and fees is available from KRS Capital Management upon written request. KRS Capital Management does not make any representations as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party incorporated herein and takes no responsibility therefore. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Where general market data or statistics are provided herein, they are provided by sources that we have deemed to be reliable.

You may not use, adopt or attempt to register anywhere in the world, whether alone or together with any other mark, symbol, or name, any KRS Capital Management trade name or mark or service name or mark that is similar or confusingly similar to the KRS Capital Management trademarks. All other trademarks, service marks, brands, and names are the property of their respective owners.