PHIL.
IF YOU'RE NOT CAREFUL, AS STUART
VARNEY SAYS WE'LL HAVE YOU BACK.
[LAUGHTER].
>>> SAME-STORE SALES MISSED AT
HOME DEPOT.
KOHL'S CUTTING THEIR OUT LOOK
COUPLED WITH EXAMPLES -- LET ES
ADMIT A LOT OF THE SHARES ARE
DOWN 95% FROM ALL-TIME HIGHS.
I WILL BRING IN JACKIE DEANGELIS
TO BREAK YOU WILL THIS DOWN.
JACKIE.
REPORTER: IT IS GIVING US A
SENSE OF CONSUMER SENTIMENT, HOW
PEOPLE ARE SPENDING AND HOW THEY
FEEL ABOUT THE ECONOMY.
THE EARNINGS THAT CAME OUT TODAY
WERE NOT STELLAR.
START WITH JCPENNEY I THINK THIS
IS AN IMPORTANT ONE.
MISSING ON THE TOP AND BOTTOM
LINE.
A LARGER LOSS THAN EXPECTED.
THOSE SAME-STORE SALES WERE DOWN
MORE THAN 5%.
THE CEO OF JCPENNEY ACTUALLY
SAID THAT THE TARIFFS IMPOSED BY
PRESIDENT TRUMP HAVEN'T HAD A
IMPACT ON THE COMPANY JUST
YESTERDAY BUT THEY ARE CONCERNED
ABOUT THAT SECOND POTENTIAL
ROUND OF TARIFFS ON THE OTHER
REMAINING $300 BILLION OF GOODS.
HE SAID IT WOULD HAVE A MORE
MEANINGFUL IMPACT.
CERTAINLY SOMETHING TO WATCH
FOR.
ON THE KOHL'S SIDE, ANOTHER
DEPARTMENT STORE MISSING ITS
EARNINGS, LOWERING IT OUTLOOK
FOR THE FULL YEAR AND THE CEO
SAYING THE YEAR STARTED OFF
SLOWER THAN WE'D LIKE.
NORDSTROM'S, MACY'S, THEY'RE
DOWN ON THE SESSION IN SYMPATHY.
THE DEPARTMENT STORES HAVE A
CHALLENGE.
THEY'RE TRYING TO MOVE
LOCATIONS.
THEY'RE TRYING TO SPIF OF
DISPLAYS TO GET CONSUMERS IN THE
DOOR.
THAT IS DIFFICULT TO DO WHEN IT
IS EASY TO SHOP ONLINE WITH
COMPETITORS LIKE AMAZON OR GO
STRAIGHT TO THE MANUFACTURER,
BUY OFF THE WEBSITE.
SOMETIMES THE PRICE SOMETHING
MORE COMPETITIVE.
CERTAINLY DON'T HAVE TO GO TO
THE STORE, IT IS EASIER ARE MORE
CONVENIENT FOR PEOPLE.
HOME DEPOT IS ANOTHER ONE THAT
INVESTORS ARE FOCUSED ON.
NUMBERS WERE BETTER, THEY BEAT
THE ESTIMATES BUT THEY WERE DOWN
BECAUSE SAME-STORE SALES GREW AT
THE SLOWEST LEVEL THE COMPANY
HAS SEEN IN THREE YEARS.
FINALLY I WILL END HERE WITH
STORE CLOSURES, LOOKING AT
DRESSBARN.
THE PARENT COMPANY THERE SAYING
IT WILL CLOSE 650 DRESSBARN
STORES.
I ACTUALLY LOOKED UP THE ENTIRE
AMOUNT OF STORES THAT WERE
CLOSED FOR LAST YEAR.
ACCORDING TO CORE SIGHT
RESEARCH, 5864.
CHARLES, AT THIS POINT IN THE
YEAR, WE'RE ONLY IN MAY, ALREADY
7,000 ANNOUNCED CLOSURES.
YOU CAN SEE THAT BRICK AND MORE
TAR STORES AND RETAILERS ARE
STILL STRUGGLING HERE.
CHARLES: YOU'RE ABSOLUTELY
RIGHT.
JACKIE.
I WOULD LIKE YOU TO STAY WITH
US.
I WANT TO BRING BACKFILL AND
DAVID.
I TOLD YOU PHIL, IF YOU'RE NOT
CAREFUL WE WILL NOT LET YOU GO.
LET'S TALK ABOUT THIS BECAUSE
INVESTORS LOOK AT THIS AND THEY
WONDER, DOES THE
BRICK-AND-MORTAR STORY HOW MUCH
IS REFLECTION OF THE OVERALL
STRENGTH OF THE CONSUMER OUT
THERE?
>> I THINK THE CONSUMER IS IN
PRETTY GOOD SHAPE.
YOU LOOK AT, WE GOT A RETAIL
SALES NUMBER ON APRIL.
DISAPPOINTING ON THE SURFACE BUT
THE MARCH NUMBER WAS REVISED
HIRE.
BECAUSE OF CHANGING CALENDAR,
EASTER, PASS OVER EVERY YEAR,
THE WHAT I REFER TO AS THE
MAPRIL EFFECT.
RETAIL SALES WERE UP 3%
YEAR-OVER-YEAR THOSE TWO MONTHS
COMBINED.
WHAT IT DOES, TELLS US THE
CONSUMER HAS SHRUGGED OFF THE
DIFFICULT WINTER, THE GOVERNMENT
SHUTDOWN, THE NEGATIVE WEALTH
EFFECT IN THE FOURTH QUARTER.
WE'VE ERADICATED THE STENCH FROM
THE DECEMBER AND FEBRUARY
NUMBERS THAT WERE POOR.
I THINK THE CONSUMER IS IN
DECENT SHAPE.
CHARLES: I FEEL LIKE WALL STREET
STARTS TO TAKE THINGS IN
CONSIDERATION.
RIGHT NOW HOME DEPOT IS UP FOUR
BUCKS WHERE IT OPENED.
THE LOW OF THE SESSION, 186.
ALREADY UP A BUCK.
THAT IS WHAT I'M LOOKING FOR.
NOT HOW WALL STREET REACTS TO
OTHER NAMES.
JCPENNEY IS DOWN 98% FROM ITS
ALL-TIME HIGH.
PARENT COMPANY OF DRESSBARN IS
DOWN 99% FROM ITS HIGH.
THEY HAVE BEEN SLAUGHTERED.
THE NAME LIKE HOME DEPOT IS
GETTING THE BENEFIT OF THE
DOUBT.
>> THERE WILL BE SURVIVORS FOR
SURE, BIG BOX DEMAND THERE IS
NOT ENOUGH OUT THERE.
THE STORES HAVE TO SHRINK.
I WALKED INTO A MALL IN
STANFORD, WILLIAMS-SONOMA WAS
GONE.
I WAS SHOCKED TO SEE THAT.
THE AMAZON EFFECT IS REAL.
I'M NOT AS ENCOURAGED RIGHT NOW
BECAUSE AMAZON IS ONLY UP
FRACTIONALLY ON THE DAY.
THEIR LAST QUARTER WASN'T THAT
GREAT.
IT WASN'T HORRIBLE.
GROWTH CLEARLY SLOWED.
I WOULD HAVE A WORD OF CAUTION
HERE.
CHARLES: FOR THE CONSUMER OR FOR
ALL RETAIL OR A LITTLE BIT OF
BOTH IF.
>> FACT THAT AMAZON SLOWED LAST
QUARTER, THAT BOTHERS ME A LOT.
CHARLES: JACKIE, I WAS LOOKING
AT COMMENTS FROM HOME DEPOT
VIS-A-VIS THE TARIFFS.
THEY HAVE MANAGED.
ANOTHER BILLION OF TARIFFS IS
ONLY 1% OF THE SALES THEY'RE
DOING THINGS ALREADY LIKE TRYING
TO MOVE SUPPLY CHAINS.
WE KNOW THAT THE INDUSTRY SENT
THE WHITE HOUSE A LETTER
YESTERDAY.
AT LEAST THE FOOTWEAR MAKERS
DID.
THEY DON'T WANT ANY PARTS OF
THIS BUT DO YOU SEE WHERE THEY
MIGHT START TO MAKE LONG TERM
CHANGES ANYWAY WITH RESPECT TO
SUPPLY CHAIN?
>> ABSOLUTELY.
I MEAN THEY WILL BE FORCED TO.
THE PRESIDENT'S BEEN HOLDING
BACK AFTER HE RAISED THE TARIFFS
AND CHINA RETALIATED.
HE HAD THAT EXTRA PUNCH.
HE IS SORT OF SAVING THAT IN HIS
BACK POCKET BEFORE HE MOVES
FORWARD.
BUT IF THIS, THE TENSIONS
CONTINUE, TO WORSEN HERE, THE
DEAL REALLY CAN'T BE STRUCK SAY
BY THE END OF JUNE, AND
PRESIDENT DECIDES HE IS GOING
AFTER THAT REMAINING
$300 BILLION, YOU KNOW,
COMPANIES LIKE NIKE, FOR
EXAMPLE, THAT MANUFACTURE SO
MUCH IN CHINA, THEY ARE GOING TO
BE FORCED TO FIND OTHER