Consumer Spending Slowing, At Least for Names I Watch

Retail sales reports are out today, and for my Watch List companies they don’t look so hot.

Small Cap Watch List (Track at Marketocracy) member Big Five Sporting Goods (BGFV):

For the fiscal 2007 second quarter, net sales increased $6.0 million, or 2.9%, to $217.8 million from net sales of $211.8 million for the second quarter of fiscal 2006. Same store sales declined 0.2% for the fiscal 2007 second quarter, representing the Company’s first quarterly decrease in same store sales in over eleven years. The Company now expects earnings per diluted share for the fiscal 2007 second quarter to be in the range of $0.23 to $0.26, compared to previously issued earnings guidance of $0.25 to $0.33 per diluted share.

Mid Cap Watch List (Track at Marketocracy) member Abercrombie & Fitch (ANF) was slow, but at least improved from the dismal performance of recent months:

June comparable store sales increased 2% for the five-week period ended July 7, 2007, compared to the five-week period ended July 8, 2006.

Other signs are pointing to the consumer slowdown extending beyond just housing-related stores. The consumer was the last leg in the economy’s stool, so businesses had better take up the slack or we could be in for more of a slowdown than we already have.

Like this article? Why not try out:

•  RSS or email subscription to my free content

• Or buy my book: Understanding and Evaluating Prospectuses, Offering Documents, and Proxy Statements