Retail Stores begin to suffer.....
The Economic slowdown continues to hit the retail stores. Lowes today posted an 18% drop in first quarter profits and lowered its out look for the year. According to this ARTICLE in the WSJ Home Depot a rival of Lowes is closing stores and scaling back expansion plans.
Home improvement stores will suffer in times of economic slowdown. Homeowners need to pay heating and electric bills rather then redecorate and expand.
For investor’s it feels to me like a yield day. Most high yielders are doing better and with a holiday in the States this weekend I think it should be quiet.
My trades from earlier stand
Short
Usd/Clp
Usd/Cop
Usd/Ars
Usd/Brl (this one I am least comfortable with)
Good Luck and Good Currency Trading.
posted by Banker at
Tuesday, May 20, 2008
1 Comments:
Home-improvement retailer Lowe's Cos. reported an 18% drop in its fiscal first-quarter profit on a steeper-than-expected decline in comparable-store sales that also led the company to lower its full-year profit estimates. The diminished outlook is a reflection of the difficult sales environment, with consumers putting off big-ticket projects in the face of a soft housing market and rising food and fuel prices.
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