Welcome to the New Economy

Consider some recent news items:

Tiffany Profit Tops Estimates as Jeweler Raises Prices

Tiffany & Co. (TIF), the world’s second-largest luxury jewelry retailer, posted third-quarter profit that topped analysts’ estimates and boosted its annual earnings forecast as the rising U.S. stock market gave wealthy consumers the confidence to snap up higher-priced merchandise.

Wal-Mart profit beats estimates, outlook weak

Wal-Mart Stores reported quarterly earnings Thursday that topped Wall Street estimates by a penny, but the world’s largest retailer came in shy on revenue and offered a tepid outlook for the holiday selling season, noting that U.S. sales in that key span will be “relatively flat.”

Ross Stores Profit Up 7.6%, Gives Downbeat Guidance for Current Quarter

Ross Stores Inc.’s (ROST) fiscal third-quarter profit rose 7.6%, driven by a bump in sales.

However, shares of Ross were down 6.9% at $74.75 after hours as sales growth underperformed expectations and the company offered guidance for its fiscal fourth quarter below analysts’ estimates.

The company raised the low end of its per-share earnings guidance for the year by three cents to $3.83 to $3.87.

For the current quarter, the discount clothing and home-goods retailer said it expects per-share earnings of 97 cents to $1.01. Analysts polled by Thomson Reuters recently expected $1.09 a share. The company also said it expects same-store sales to be up 1% to 2% in the period, compared with 5% growth last year.

Target trims forecast as quarterly sales fall short

Target on Thursday reported comparable sales rose a smaller than expected 0.9 percent in the third quarter, blaming what it called “constrained” consumer spending, and it lowered its full-year profit forecast.

The high-end seems to be doing well, while the lower-end is having trouble.

Posted by on November 26th, 2013 at 8:05 am

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