Photo: Yahoo Finance
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.