The day after Thanksgiving is referred to affectionately as “Black Friday.” This term is used by the retail industry to indicate when companies in the sector become profitable (an old accounting practice was to show losses in red and profits in black on the ledgers). Imagine that – it takes almost until the end of the year for a retailer to start racking up profits! Of course, the big driver is the holiday season. And, the kick off to the holiday shopping season is the Friday after Thanksgiving.
It would appear that this year the holiday selling season will probably prove to be a good one largely due to the recent and significant decline in gasoline prices. Simply put, more money becomes available for gifts. The economy in the US has firmed, as well, although growth has been slower than past recoveries.
Yet, all in all, this spells optimism.
Ready… Set… SHOP!
All questions or comments are welcomed.
Bob Bilkie, CFA®