Sustained and Busted Retail Narratives

Michael Kors Holdings Limited ($KORS) reported HORRIBLE numbers this past week: an absolute trainwreck. Quickly here: revenue down 11.2%, same stores sales down 14.1%, wholesale net sales down 22.8%, and a quarterly net loss of $26.8mm, a ($203mm) swing from the same quarter last year. Feel free to pencil in 100-125 KORS stores into the chart below which, in a sign of the fast moving destruction of retail, is already outdated (Also, all of these closures are shining through in the retail job numbers). Express Inc. ($EXPR) also reported profit and revenue misses and saw its stock plummet. Meanwhile, L Brands ($LB) reported a 7% comp sales decrease and total sales down 5%; it closed 6 stores (but still has 3074!). By brand, Victoria's Secret -14%, Bath & Body Works +6%, and L Brands - 7%. The beauty narrative is sticky. As is the discount stores: Dollar General ($DG) reported solid numbers. And as is yoga, apparently, as Lululemon ($LULU) surprised to the upside though it, too, is closing some stores. All things housing related were supposed to be ringfenced from Amazon but, well, maybe not: Restoration Hardware ($RH) took a beating on earnings. It claims to be taking the heat now to protect itself from Amazon later. We'll see.