Doug Kass: The Smartest Retail Expert I Know Sees Huge Problems Coming

Doug Kass

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In a quick note up at Real Money, Doug Kass is warning of trouble for retail, citing his friend “Irving” a retail maven that’s the best expert he knows on the subject.

With the broad rise in commodities, retailers he talks to will attempt to raise prices by 5% to 15% this fall.

He believes industry gross margins have at least 200 basis points of risk.

Furthermore, if the reverse operating leverage coincides with an increase in interest rates … Katie bar the door!

Meanwhile, he already sees early signs of trouble in sagging Las Vegas gaming revenues, a harbinger for an economic dip.

For more on retail trouble, see here >