How Does Amazon's Q3 Performance Read Through For The Rest Of Retail?

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While Amazon.com, Inc. AMZN remains on a growth trajectory, the rest of the retail industry continues to feel the pressure, Wells Fargo’s Ike Boruchow said in a report.

Q3 Read Through

Boruchow mentioned that an analysis of Amazon’s Q3 performance highlighted four major implications for the rest of retail:

    1. Total Sales: Amazon’s gross merchandise value (GMV) sales grew by more than $12 billion year-over-year, and accounted for more than 100 percent of the total retail sales growth in Q3.

Amazon’s total retail penetration continued to grow, from 7.6 percent of total sales in Q3 2015 to the current 10.1 percent. This kept comps under pressure for the rest of retail, which has reported negative comps for five consecutive quarters including Q3.

At last check, Amazon shares were relatively flat on the day, down just 0.05 percent and trading at $770. The SPDR S&P Retail (ETF) XRT was recently seen up 0.65 percent at $47.81.

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Posted In: Sector ETFsTechTrading IdeasETFsGeneralcomScoree-commerceIke BoruchowretailretailersWells Fargo
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