A Look At Some Of The Earnings Coming The Week Of November 28

The past few weeks have been a whirlwind on the earnings front with very little room to breathe. In lieu of weekly summaries I took a hiatus and a few throw downs and deep dives will be on the horizon as I sort winners, surprises, and zones of concern regarding earnings. This coming week, we are once again taking a look at some names in the retail and consumer space that are set to report earnings, my reason for looking at them closely, and one macroeconomic question pertaining to them.

Hibbett Sports
HIBB
-Tuesday Before Open

Why: In a sea of retail uncertainty, sporting goods appears to be a potential bright spot. Last week, Dick’s Sporting Goods reported EPS and revenue beats when it chimed in with its latest quarterly earnings. On the call, CEO Lauren Hobart cited company-wide strategy and change that had taken place over the past five years. Sporting goods are more of an evergreen item to begin with, but Dick’s still reported record sales related to a robust inventory of hot items that started in the previous quarter and upper management remained upbeat about the coming Holiday season. In contrast, Hibbett Sports most recently reported EPS and revenue misses.

My Question: Will the evergreen nature of sporting goods have a positive impact on more than one sports retailer this quarter?

Petco-Wednesday Before Open

Ulta Beauty-Thursday After Close

Why: As two specialty retailers that provide both essentials and extras, watching their results should give insight into whether or not disposable income was spent during the quarter, as well as how much. In the case of Ulta, back-to-school could have had some impact if enough shoppers hit the shelves prior to hitting the books. Petco, which is arguably not impacted by back-to-school demand still serves a niche clientele and those so-called “pandemic puppies” continue to come of age, creating both supply and demand for pet care and grooming items.

My Question: Were shoppers inclined to visit specialty shops this quarter or did they purchase items such as shampoo and dog food at the supermarket?

Five Below
FIVE
-Wednesday After Close

Dollar General
DG
-Thursday Before Open

Big Lots-Thursday Before Open

Why: One of the biggest retail success stories to come out of this recent quarter was WalmartWMT
. Its success was in part related to a loyal customer base, but its most recent quarter also revealed that for some shoppers, brand loyalty was hampered at competitors. Walmart revealed that more upscale clients had pivoted in the quarter, favoring its discounts and helping to cinch the company’s success during that time period. A season of discounters might be the way retail trends for quite some time going forward, making Five Below, Dollar General, and Big Lots contenders to enjoy the perks of being local outposts where consumers hoping to pay a bit less at the register flock.

My Question: Tell me everything about the foot traffic in the quarter.

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Victoria’s Secret & Co.
SCRT
SCRT
-Wednesday After Close

Kroger
KR
-Thursday Before Open

Why: Lingerie and groceries could quite possibly be two of the most polar of polar opposites on the consumer front, but they share something ginormous and worth watching: big change. In October, Kroger announced plans to merge with Albertson’s to the tune of nearly $25 billion. A handful of weeks later, Victoria’s Secret said it would acquire AdoreMe, an online lingerie retailer, for $400 million. Lingerie and groceries also share the esteemed position of being necessities, making both companies all the more compelling to watch.

My Question: Was this a good period to merge or acquire?