Kohl’s reported earnings today, that beat so-called expectations. Wal-Mart reported yesterday, also better than expected numbers. Kohl’s third quarter earnings were up 21% versus the same period of 2008. However, 2008’s third quarter was a down quarter. Therefore, the increase is off of depressed numbers. Wal-Mart reported a 3.2% increase versus the third quarter of 2008, but off of a higher base.
The point is that these short-term comparisons can be very misleading. That’s why I like to look at time frames that span at least a full business cycle, or 3-5 years. Today’s video puts Wal-Mart’s & Kohl’s third quarter earnings reports into perspective.
Best when viewed in full youtube screen.
Disclosure: Author Manages Portfolios Long KSS
Short-term reports can be misleading. Longer term cash flows and earnings are whats most important. Having a clear perspective is a great benefit for the prudent investor.
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