Posts filed under “Retail”

Apple now bigger than Dell

Here’s something I never would have imagined as possible just a few years ago: Apple now has a larger market capitalization than Dell — 72.13B versus 71.97B. Neither company is cheap — Apple’s P/E is 55, while Dell’s is 24.

There is no word for that other than astonishing. I’ve been a Mac user for 20 years, never was a fan of Windows (although XP is pretty good), but I never in my wildest dreams ever envisioned this happening. 

Recall what happened after Jobs returned to Apple back in 1997. When asked what could be turn to turnaround Apple, Dell’s founder and chairman, Michael S. Dell advised "shutting down Apple and give the money
back to the shareholders."

The NYT reports that in an email to employees:

On Friday, apparently savoring the moment, Mr. Jobs sent a brief e-mail
message to Apple employees, which read: "Team, it turned out that
Michael Dell wasn’t perfect at predicting the future. Based on today’s
stock market close, Apple is worth more than Dell. Stocks go up and
down, and things may be different tomorrow, but I thought it was worth
a moment of reflection today. Steve."

Dell executives did not return calls over the weekend asking for comment on Apple’s rising fortunes.

Does this imply some additional froth in the market? That’s hard to quantify.

I cannot recall anyone making this forecast 7 years ago.  Truly astonishing . . .


Michael Dell Should Eat His Words, Apple Chief Suggests
Published: January 16, 2006

Category: Investing, Retail, Web/Tech

December Retail Not So Hot

Category: Retail

Consumer Spending and Housing Correlation

Category: Economy, Real Estate, Retail

More on Holiday 2005

Category: Retail

Good — Not Great — Holiday Shopping Season

Back on December 1, I mentioned that "Holiday sales increases can be in the 3 to 4% range." This modestly Bullish call was at the very low end of Wall Street projections.

The prime motivation for that range was the decreasing gasoline prices post Katrina, and the love affair with Plasma Screen TVs (that was the good news). Keeping the Bullishness modest was the negative real income for the middle class; on the other end, the increasing take home pay for the ultra wealthy supported the relative strength of the luxury retailer.

The WSJ reports that "overall, Retail Sales rose 3.2%." And, the big winners were the luxury stores. Its a pleasant surprise anytime projections like this end up that accurate.

I also wish to remind you (again) how the silly NRF projection of 22% was; Their absurdity was a statistical abomination (and they were chastised in this space for it)

Here’s the Journal’s summary:

Holiday shoppers spent big on a few products last month, but held out for last-minute deals, resulting in mixed performances from U.S. retailers. Cash registers rang at luxury retailers and teen specialty shops, but sales at Wal-Mart Stores Inc. disappointed.

Overall, sales at stores open at least a year, a measure known as same-store sales, rose 3.2% in December from a year earlier, according to an index of 66 chains compiled by the International Council of Shopping Centers. The trade group, based in New York, had expected same-stores sales growth between 3% and 3.5%. According to the tally, same-store sales at luxury stores grew 6.4%, while discounters ticked up just 2.6%.

"All combined it was good, not great," said Jeff Klinefelter, senior research analyst at Piper Jaffray. "When we finally got the last-minute rush, it was the higher-end consumer that followed through with spending."


Luxury Stores Were Holidays’ Stars
Overall Retail Sales Rose 3.2%, Slowed by Discounters; Holdout Shoppers Also Hurt
THE WALL STREET JOURNAL,January 6, 2006; Page A2

Mixed Stockings for Retailers

See the WSJ’s retailer chart here:

Read More

Category: Retail

Wal-Mart’s Worst Xmas in Five Years

Category: Retail

Read it here first: The Death Of Bling?

Category: Media, Retail

“bling” Becomes Marketing Verbiage

Category: Retail

Retail Sales: “Decent but Unexceptional”

Category: Retail

An Accident-Prone Economy

Category: Economy, Retail