Moody's Sees Strong Holiday 2013 Shopping Season (AMZN) (EBAY) (WMT) (TGT)
Tweet
Share
E-mail
Holiday sales growth for US retailers should improve this year as consumers loosen their grip on their wallets, Moody's Investors Service says in a new report, "Holiday Sales Will Offer More Cheer for the 2013 Season." The easing of fiscal uncertainties should provide a healthy lift to sales over last year's gain.
"We expect holiday sales growth to be in the 4.5 percent to 5.5 percent range for the 2013 November-December shopping season, compared with 3.8 percent last year," says Assistant Vice President -- Analyst and author of the report, Michael Zuccaro. "Much of this improvement will be due to pent-up demand as lingering fiscal uncertainties ease and as consumers snap up pivotal new game systems like Playstation 4 and Xbox One."
In the year to date US retailers' sales and earnings are on track with Moody's full-year forecasts. Sales growth has been tracking at the lower end of the 3 percent-5 percent range, while earnings growth is in the 3.5 percent-4.5 percent range. Moody's believes retailers for the most part have managed inventory levels conservatively and have focused on expense control.
Consumers will continue to prioritize gift-giving for this holiday season, Zuccaro says, noting that last year holiday sales rose modestly despite the fiscal cliff crisis and Hurricane Sandy.
"While weak sales in October this year likely reflected concerns about the government shutdown, month-over-month growth in spending on electronics, furniture and sporting goods was strong, which may indicate that consumers have begun to release pent-up demand."
The best-performing segments will again be electronics, toys, party goods and luxury goods, Moody's says, while retailers whose goods are perceived to be good value for money should also do well. New product launches such as Playstation 4, along with the recent iPhone 5c and 5s, should boost sales for companies such as Best Buy (NYSE: BBY), Toys "R" Us and Amazon.com (Nasdaq: AMZN) over the holidays.
"We expect holiday sales growth to be in the 4.5 percent to 5.5 percent range for the 2013 November-December shopping season, compared with 3.8 percent last year," says Assistant Vice President -- Analyst and author of the report, Michael Zuccaro. "Much of this improvement will be due to pent-up demand as lingering fiscal uncertainties ease and as consumers snap up pivotal new game systems like Playstation 4 and Xbox One."
In the year to date US retailers' sales and earnings are on track with Moody's full-year forecasts. Sales growth has been tracking at the lower end of the 3 percent-5 percent range, while earnings growth is in the 3.5 percent-4.5 percent range. Moody's believes retailers for the most part have managed inventory levels conservatively and have focused on expense control.
Consumers will continue to prioritize gift-giving for this holiday season, Zuccaro says, noting that last year holiday sales rose modestly despite the fiscal cliff crisis and Hurricane Sandy.
"While weak sales in October this year likely reflected concerns about the government shutdown, month-over-month growth in spending on electronics, furniture and sporting goods was strong, which may indicate that consumers have begun to release pent-up demand."
The best-performing segments will again be electronics, toys, party goods and luxury goods, Moody's says, while retailers whose goods are perceived to be good value for money should also do well. New product launches such as Playstation 4, along with the recent iPhone 5c and 5s, should boost sales for companies such as Best Buy (NYSE: BBY), Toys "R" Us and Amazon.com (Nasdaq: AMZN) over the holidays.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Gilead Sciences (GILD) Misses Q1 EPS by 288c
- South Plains Financial Inc. (SPFI) Tops Q1 EPS by 6c
- Northeast Community Bancorp, Inc. (NECB) Tops Q1 EPS by 12c
Create E-mail Alert Related Categories
Credit Ratings, Retail SalesRelated Entities
Moody's Investors Service, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
