The retail space was not looking too good on Thursday. Profits and revenues at Wal-Mart (WMT) and Kohl’s (KSS) fell short of estimates. JCPenney (JCP) is expected to report a loss of $1.25 a share when it reports results this afternoon.
What’s going on in retail? Breakout host Jeff Macke and Yahoo Senior Columnist Michael Santoli spoke with Lauren Lyster about the retail sector and consumers.
“These numbers were icky,” Macke said of Wal-Mart’s earnings and revenue numbers. “This was not a great quarter.” Macke said that he thinks the public should ignore government data and look at reporting from merchants. “Unfortunately, the merchants are telling us worse things than what we’ve heard from the government,” he said. “This isn’t good as far as the economy’s concerned.”
Santoli wasn’t optimistic either. “It seems like more losers than winners when it comes to the retailers,” he said. With regard to consumers, he said wage growth isn’t there. “It doesn’t seem as if the overall pie of potential spending in the mainstream is actually getting too much bigger.”
“So therefore it is just kind of a steady state; No great growth,” he said.
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