Most know that Black Friday’s name came from days gone when retailers finally turned a profit for the first time of the year, or moved into the “Black”.
Fortunately as analysts in this day and age, most companies profit throughout the year, but certainly have a heavy dependence on the next few days of revenue.
In a slightly humorous two-part post starting today, we share two totally different imaginary people, “Sammy the Spender” and “Susie the Saver”.
Today “Sammy the Spender” (An Analyst and Investor’s Dream)
We want everyone to hit the malls with Sammy and shop until they drop. Retailers and consumer related companies are ready for a frugal shopper and have stocked their inventories and priced their products appropriately. All retailers need are a few good shopping hours. Sammy, which we hope shows up on Friday morning, early, in good spirits, with money to burn, would make for a major positive season. Consumers have been relatively frugal as unemployment fears have reigned in their spending, keeping consumer related companies on their toes. As an Analyst, we hope Sammy makes for a positive start to the season!
Last holiday season was extremely tough for retailers, making comparable growth numbers (comparisons from last year) a low, and easily jumped hurdle. As revenue numbers are reported from the season, easy comparisons should make for nice growth year over year, in turn propelling further good will (moving upwards) the capital markets.
As an Analyst and Investor, we wish Sammy a Spirited Holiday, and VERY busy Season.
Tomorrow: “Susie the Saver” Our Planning and Investing Client!