Retail Anecdotes

Of the retailers reporting same stores comparisons or quarterly earnings today, the results seem to be mostly negative. Ross Stores, a discount clothing retailer, reported tepid same store sales growth that missed wall street estimate.

NEW YORK (MarketWatch) -- Ross Stores Inc. said Thursday that its February same-store sales fell 1% after a 9% gain a year earlier. The most recent month's result missed the 1.1% increase analysts surveyed by Thomson Reuters were looking for. "We believe the slight decline in February same store sales was mainly due to the delay in income tax refunds," said Chief Executive Michael Balmuth.

In addition, Big Lot, another discount retailer reported a good quarter beating Wall Street estimates, but indicated that current quarter sales have been challenging. Shoe Carnival, a discount retailer of footwear, reported 4th quarter results and stated that sales suddenly fell during the last 2 weeks of January. PetSmart, which has appreciated 50% over the past 2 years on strong sales and earnings growth, also allowed forward sales guidance in its earnings announcement.

It seems that the effect of high payroll tax and the delayed tax refund due to government operating under continuing resolution are starting to wield its effect. Going forward, we will also have the additional headwind of the gradual implementation of the sequester to contend with. The profitable trade in stocks continues to be buying Bernanke and selling Washington.