Jan 24, 2009 at 11:46AM
I've been getting emails from Gap Inc. for almost four months now and what better way to spend a lazy Saturday morning than updating my Excel spreadsheet?
(See previous incarnation here.)
Notes/Questions:
- Gap Inc. said its "same-store sales for the month of December plunged by as much as 14 percent" from 2007 to 2008. Said CFO Sabrina Simmons: “We responded aggressively across our brands with compelling offers, which helped us clear through a significant amount of holiday inventory, but resulted in merchandise margins below last year.” Yup, that sounds about right.
- I suspect that I've received no Old Navy emails because I signed up for a Banana card, i.e., the higher end of the Gap Inc. spectrum. Could I have hit three emails a day if I'd signed up for a middle-brow Gap card?
- The stock's low point was 9.45 on November 20th, the day the DJIA bottomed out at 7552 (both the stock and the index losing almost 10% in a two-day kamikaze freefall).
In related news, I found an article from the AP wire on how the retail industry plans to respond to consumers' newfound thriftiness, with tactics ranging from reducing production time of items to cutting inventory by 20 to 30 percent to reducing standout options and going back to basics: "For prom gowns, [Nicole Miller president] Konheim said the company used to do oddball colors like olive green — but not anymore."
It will be pretty interesting to see how it all plays out, especially with some economists calling for the end of the recession as early as June or December 2009 - what happens when consumers get their spending mojo back but don't have anything to buy?
Nov 20, 2008 at 11:13AM
Trying to understand bonds? Start here.
(via Slate.com's The Big Money)
Various terrifying notes from NPR's Planet Money podcast yesterday: the TED spread is artificially low and bailout money is going to the big nine country wide banks but also the largest banks in every state regardless of their rating (senators and congressmen, butter, sides of bread, etc.).
A tipster informed Dealbreaker that NYC Citigroup HQ removed the tickers from the lobby and the cafeteria. No word on whether they've blocked http://letmegooglethatforyou.com/?q=citigroup+stock+quote.
Finally, the NYT Economix blog has a tally of editorials for and against my dad having to buy foreign (via baselinescenario).
Nov 5, 2008 at 8:12PM
I sent an email to my dad last night promising a skyrocketing DJIA - how could the market not respond positively to the election elation? - but it actually opened 2% down. Shows what I know, i.e., FAIL. As he would say, "This is the beginning of wisdom."
Portfolio mag threw together the cutest little playoff chart for Obama's new Treasury Secretary; sources say Timothy Geither (president of the NY Fed) and Larry Summers (who held the position for a year or so during the Clinton era) are on the short list. No word on what flying-rainbow-unicorn-of-hope candidate Buffett might say in response to the offer. (via Dealbreaker)
Finally, Reuters reports that planned layoffs jumped to a near five-year high during October and Time tries to scare the crap out of us by predicting unemployment as high as 12% by next year.
Sep 29, 2008 at 7:43PM
538.com breaks down the count of incumbent versus up-for-reelection congresspeople who voted against the bailout (via Gawker).
But if Clusterstock's analysis of Bailout Numero Uno is accurate (the thesis: it suxx0red), the House Republicans will go down in history as having made the right decision (for the wrong ignorant-ass-constituent reasons).
Sep 21, 2008 at 8:54PM
Maureen "Moe" Tkacik was a combative, self-aggrandizing woman-hater on the Gawker network's ladysite Jezebel*; her prose-wrangling has been - surprise, surprise - a much better fit at the flagship property, especially in her intelligently irreverent coverage of Economyintheshittergate 2008.
The Financial Crisis, In 15 Easy Links
The NYT Freakonomics blog takes on the financial crisis in words I can understand:
"For an individual or business that falls behind on payments or needs an increase in short-term credit because of the slowing economy, credit will be much harder to obtain than in recent years. This is going to slow growth. We have not seen this much stress in the financial system since the Great Depression."
Diamond and Kashyap on the Recent Financial Upheavals
Dealbreaker has a funny:
An open question: U.S stocks surged at the end of last week in the "biggest two-day global rally in 38 years" in reaction to government intervention. Why would the market rebound in response to what is essentially a bandaid on a bullet wound?
*Obviously, I might have an opinion on the matter.
