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In Retail, Top Line Doesn't Matter Right Now

By Jim Cramer

 About this article:
 Retail -- sales are slumping. Sales are weak. Sales are sluggish. Sales are so-so. Enough already. Here's the deal: You know what this means? Sales are in line. We still, after all of this history, don't get it. What matters with retail is, "Are sales in line with budgets?" That's what you want. Target's up 3 -- I want those 3. Why are they up? Because sales are in line with inventories, which therefore makes the back-to-school season encouraging. But what's the headline that's pulled? "Target says top-line growth biggest challenge." That's not the headline that matters. What matters is they are making a ton of money because they got it right. They didn't take down a lot of inventory, and they had the right inventory. Now consider Lowe's . Wrong inventory. Too much inventory, the dreaded word: PROMOTIONAL. Do not be confused. Retail is not about top...

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