More Retailers Presenting at 2016 Goldman Sachs Conference Expect Macro Deterioration Than in 2015, 2014 (NASDAQ:CASY)


A larger percentage of the retailers presenting at the annual Goldman Sachs Global Retailing Conference this week are expecting a deterioration in the consumer environment than in the past few years, Goldman Sachs said in a note to clients Friday. “Apparent deterioration in the macro backdrop remained in focus on the second day” of the conference, the firm observed, noting 18% of its presenting companies expect a deterioration in the consumer environment in the second half versus the second quarter. This compares with just 8% of presenting companies having such expectations at the conference in 2015 and 2014 when the same questions were asked.

Meanwhile, just 27% of presenting companies expect an improvement in the second half versus the second quarter, versus 55% in 2015 and 2014, Goldman Sachs said. It said “nerves were frayed further by the convergence of the conference with earnings shortfalls or negative pre-announcements from a number of companies,” including Casey’s General Stores (NASDAQ:CASY), Tractor Supply (TSCO), Sprouts Farmers Market (SFM), Pier 1 Imports (PIR) and SuperValu (SVU). The firm noted the weakness seems to be the most acute in the grocery category, with both Sprouts Farmers Market and SuperValu cutting guidance this week amid deflationary pressure that accelerated in August. Still, Goldman Sachs highlighted three retailers as being more constructive on the second half: discount-store operator Dollar Tree (DLTR) and home-improvement retailers Home Depot (HD) and Lowe’s (LOW). “Interestingly all of them had seen a deceleration from 1Q to 2Q and have been the subject of some resultant concerns, yet commentary suggested confidence in a stable backdrop for dollar stores and [do-it-yourself] retail,” the firm added.

About 346,214 shares traded hands. Casey’s General Stores Inc (NASDAQ:CASY) has risen 6.74% since February 8, 2016 and is uptrending. It has underperformed by 9.75% the S&P500.

Casey’s General Stores, Inc. and its subsidiaries, operate convenience stores under the name Casey’s General Store in approximately 10 Midwestern states, in Iowa, Missouri, and Illinois. The company has a market cap of $4.72 billion. The Firm also operates approximately two stores selling primarily tobacco products. It has a 20.55 P/E ratio. The stores carry a range of food, including freshly prepared foods such as pizza, donuts, and sandwiches, beverages, tobacco products, health and beauty aids, automotive products and other nonfood items.

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