Apr 10
17
Southridge Capital Encouraged Retailers Posted Strong Gains for 5 Weeks Ending April 3, 2010
Southridge Capital was encouraged by recent reports that retailers posted strong gains for the 5 weeks ending April 3, 2010, with all major retail groups having seen their sales increase in the past 5 weeks. We think this is a direct correlation to consumers’ feeling a bit better about economy. Unlike the last 2 years where companies waited almost helplessly for consumers to open their wallets (remember, certain old reliables such as: Fortunoff, Circuit City, Chrysler, GM, Filene’s Basement, Eddie Bauer all filed Chapter 11 during this time frame), it appears as if the consumer is ready to jump back in. One example of a company that was able to hold its own during the recession and should do better as the economy turns is Mattel’s Barbie doll. U.S. Barbie dolls sales, increased for the fourth consecutive quarter, and in the fourth quarter of 2009, Global sales for Mattel’s Barbie doll also rose 3 percent. Mattel, Inc., (NASDAQ:MAT) did a survey, and voted on making a Barbie doll as computer engineer. Mattel has over 125 different ‘looks’ to it star, and is trading just about at its 52 week high. It’s good to see that there is still enough discretionary income in the system for a Barbie.
