Stock market financial growth chart on dark background.
Over the next few days, anticipated earnings reports will span a spectrum that runs from popular in-home fitness giant Peloton to green energy giant Jinko Solar. Notably, so many companies and industries continue to grapple with factors like supply chain woes, inflation-related pressure, and inventory overloads, making the story even more interesting as reports roll out. While it’s impossible to pinpoint who the winners and bright spots will be, here are some names I’ll be watching with great interest this week.
Macy’s-reporting Tuesday before markets open
Nordstrom
Why: As the big department store names that will report earnings this week, they are both fantastic barometers to help shape the overall sector picture. The department store sector has gone through a lot over the past few years, and pandemic related issues certainly haven’t helped. According to the Census Bureau’s retail report, in July, consumers spent $11,191 billion in department stores, down from $11,246 billion in June and $11,527 billion in May. Meanwhile, both Macy’s and Nordstrom most recently reported EPS beats.
My Question: With overall spending at department stores in flux over the past handful of months, inflation being what it is, and the potential for boundless inventories, who will benefit more: the customer or the company?
Petco-reporting Wednesday before markets open
Why: Last May, the ASPCA estimated that nearly one in five US households acquired a cat or a dog since the start of the COVID-19 pandemic. This estimate puts nearly 23 million furry friends into our homes. When family members were at home more, pet needs such as training, walking, and companionship were an easier affair for many families, but with more returns to class and the office, it’s probably natural to expect some kind of spike in overall customer needs at pet retail and service shops.
My Question: What is the current demand for pet supplies and services and where does Petco see it heading?
Victoria’s Secret/Guess
Abercrombie & Fitch
Gap, Inc.-reporting Thursday after markets close
Why: Like many retailers that once dominated the mall and the proverbial “cool kids” tables across the nation, there’s definitely a bit of an identity crisis going on in the sector related to mall closures, waning interest, and outside competitors. Chip West, a retail and consumer behavior expert at Vericast noted that “brand loyalty is dead,” in a recent response report to the US Census Bureau’s retail report, adding that this death, “presents an opportunity for retailers to attract new customers by promoting value and offering the best price.” However, fashion itself is going through a slight reckoning of its own as consumers demand more eco friendly and sustainable options. Because fashion is often traditionally more transient, the eco-consciousness factor has more companies thinking bigger picture and how to better accommodate eco demands.
My Question: Did these companies pivot considering the extra pressures and demands and, if so, have consumers responded positively or negatively?
Dollar Tree
Why: To kind of quote that famous guy who said it best, “it’s the economy,” folks. We’ve all felt the spiking prices everywhere, including the supermarket. Add an item shortage here or there and the high costs plus bare shelves could understandably translate to consumer pessimism galore. Enter discounters, like Dollar Tree and Dollar General, which offer up the goods to consumers at lower prices. According to the Census Bureau, consumers spent $78,964 billion in food and beverage stores in July, up from $78,803 billion in June and $78,111 billion in May.
My Question: Did foot traffic rise as consumers pinched more penny and if so, by how much?
Coty
ULTA-reporting Thursday after markets close
Why: It’s no secret that we all want to look and feel our best, but as an increasing number of us re-enter “life” as we once knew it under this new normal, the need or want to upgrade or refresh our looks is understandable. In the days of COVID-19 at-home life, DIY beauty and upgrades became all the rage and the norm for consumers to offset pesky stuff like new growth after dyeing one’s hair or not being able to go to the spa for a facial or mani/pedi.
My question: Have consumers fallen out of love with DIY and at-home beauty or is some of it here to stay?
Source: https://www.forbes.com/sites/gracelwilliams/2022/08/22/apparel-department-stores–dollar-stores-a-look-at-some-of-the-earnings-coming-the-week-of-august-22/