Chillin' out till it needs to be funded
The continuing saga of bad investments at Sears and JC Penney now contrasts more starkly with winning battles of GAP (US:GPS) and Macy’s(US:M) among others even as Apple and Amazon continue climbing into new rarified air every week. While Amazon is likely to show stronger eCommerce growth with $10B quarters more a norm than the Holiday season Santa boat, Apple is still the only Tablet out there despite the continuing disappointment with the 2011 forecasts that bore out the first two consecutive quarters and outperformed raising expectations ever too higher while China’s smartphone and Tablet competition made the future forecasts unlikely to be as damning for the competition.
Amazon’s target for 2013 has been raised to $420 and $325 with analysts from Macquarie and Morgan Stanley with platitudes for its cloud based services starting the herd move towards the AWS program and stock for the next decade, eCommerce holding sales steady. Apple on the other hand has shown it can withstand Samsung’s 500 smartphones a minute Sales achievement it announced today but Lou Ambrosio, the outgoing CEO at Sears is unlikely to be a Benmosche for the retailer and come back with another group of investors to buy the stock , leaving the struggling behemoth with hedge fund manager Eddie Lampert with a not so elegant record with the restructuring despite 2012 performance adding more than a $1B in cash to the near defunct retailer.
JC Penney in the meantime had no goods to report for the Holiday season just gone by with Apple Guy Ron johnson firmly in charge of a ne expensive program to torpedo the boat, same store sales falling nearly 35% in the December quarter as monthly reports in rich November turned up
Only 88 Sears locations/stores were listed for closure in 2012 and Lampert’s management style is unlikely to throw Sears’ and K Mart fans any better surprises this time around with Ambrosio’s exit likely meaning a close out of the stores’ flirting with technology and revival of Kenmore and Craftsmen brands.