Slope of Hope Blog Posts

Slope initially began as a blog, so this is where most of the website’s content resides. Here we have tens of thousands of posts dating back over a decade. These are listed in reverse chronological order. Click on any category icon below to see posts tagged with that particular subject, or click on a word in the category cloud on the right side of the screen for more specific choices.

Short Circuit (By Fayssoux)

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Last week, Kroger was absolutely crushed for missing
numbers, despite its well deserved status as a “best in breed” retailer in the supermarket
category.  Today, Best Buy is missing on
some dimensions (same store sales results are underwhelming in light of the general
strength of electronics and the elimination of Circuit City
as a competitor). It is down 4% or so pre-market.  There is a great deal of optimism built into
the prices for best-in-class retailers. 
Kroger and Best Buy are showing how fast that optimism can drain out
when reality proves modestly worse than expectations.  There is a disconnect between what it is
going on in malls and what is priced in retail stocks, imho.

On a separate note, Best Buy highlighted weakness in gaming,
movies and music (versus strengths in notebook computers and flat panel TVs).  Gaming companies have been weak; it will be
interesting to see if the markets connect the dots and push them down
further.  This is not a consumer category that is
going to come back strong in my opinion, given changes in behavior (migration online
and away form stand-alone devices)