All articles tagged with #retail stocks
US retail giants like Walmart and Target are set to report earnings amid ongoing trade tensions, inflation, and changing consumer behavior, providing insights into the health of American consumers and the potential impact of tariffs on profit margins and spending patterns.
Former President Trump has ended the global 'de minimis' tax exemption, which could have significant implications for retail stocks by potentially increasing tax burdens on cross-border e-commerce and imports.
As Black Friday approaches, retail stocks are fluctuating with recent earnings reports. Dick's Sporting Goods reported better-than-expected earnings and revenue, raising its full-year guidance, but its stock saw a brief rise before declining. Burlington Stores met earnings expectations but missed on revenue, while Abercrombie & Fitch exceeded expectations and raised guidance. Best Buy and Kohl's reported disappointing earnings, with Kohl's stock dropping significantly. The retail sector is closely watched as the holiday shopping season begins.
Representative Marjorie Taylor Greene recently bought stocks in six companies: ASML, Costco, CrowdStrike, Lululemon, Nestle, and NextEra Energy. These purchases reflect interests in AI, retail, and renewable energy sectors. While some of these stocks, like ASML and CrowdStrike, are strong tech investments, others like Nestle may not offer the same growth potential. Investors should consider these factors before following her stock moves.
Despite rising interest rates and inflation, consumer spending remained strong in 2023, benefiting retailers like Lululemon, Abercrombie & Fitch, and Costco. Wall Street analysts favor these stocks due to their strong performance and resilience in the current economic environment. Factors such as job market strength, decreasing inflation, and potential interest rate declines are seen as catalysts for consumer stocks. Analysts advise investors to focus on successful brands, experiential offerings, and companies with strong online customer experiences when considering consumer stock investments.
CNBC's Jim Cramer is optimistic about the performance of retail stocks and consumer spending during the holiday season. He highlights the strong sales and stock recoveries of retailers like Victoria's Secret, PVH, Ulta Beauty, and Foot Locker. Cramer believes that the consumer is healthy and not cash strapped, indicating a positive holiday quarter with growth without inflation.
CNBC's Jim Cramer suggests that the market is expanding beyond the dominance of the "Magnificent Seven" tech stocks, with renewed interest in smaller cap stocks. Larger companies are now seeking to acquire smaller ones with inexpensive shares, and activist investors are pushing for improvements in enterprises. Retail stocks are also gaining momentum after delivering better-than-expected quarters. However, Cramer notes that this shift does not mean investors are completely moving on from the tech sector.
Black Friday has evolved from a single day to a concept, with retailers starting their holiday promotions as early as November. As a result, Black Friday sales data is no longer a reliable predictor of consumer health. This year, many households are facing financial stress, making it challenging for retailers to sell discretionary merchandise. To select retail stocks, investors should analyze recent earnings calls to gauge November sales performance and monitor promotional trends. Deep discounts may boost volume but harm margins. Target is expected to be aggressive with promotions, while Tapestry's CEO suggests consistent promotions compared to last year.
CNBC's Jim Cramer suggests that the retail sector may be emerging from a slump following Gap's strong earnings report, which caused the stock to surge over 30%. Cramer acknowledges that it has been challenging for retail stocks to see gains this year, but positive reports from Gap and Target indicate a potential shift. Despite Gap's impressive earnings, the company remains cautious about the holiday quarter due to concerns about inflation, high interest rates, and reduced disposable income. Cramer believes that if Gap and Target continue to lead the way, it could signal a broader bull market in retail, not just in tech stocks.
Wall Street is anticipating a divergence in retail earnings this week as the US consumer remains selective with their spending. Service-based retail stocks have seen an increase due to higher spending on travel, while automobile and parts stocks have declined. Companies in the consumer staples sector have fared better than those in the discretionary sector. Walmart has outperformed the S&P 500, benefiting from consumers trading down amid inflation, while Target has seen shares fall due to its higher dependence on discretionary spending. Home Depot, Target, and Walmart are among the retailers set to release earnings this week. Analysts have mixed views on the sector, with some expecting a slowdown driven by student loan repayments, declining excess savings, and higher borrowing costs.
Goldman Sachs suggests that retail stocks may be a good investment as the economy is expected to slow down. Despite concerns over inflation and rising energy prices, consumer spending remains strong, with no expenses being spared for Halloween costumes.
Barclays analysts predict an impending $15.8 billion monthly hit to U.S. spending as the average student loan holder faces a monthly payment of about $390 starting this fall. This will hit 16% of the U.S. population and add pressure on consumer discretionary and apparel stocks, particularly those targeting higher income, higher education, and 18- to 34-year-old cohorts. Retailers such as American Eagle Outfitters, Urban Outfitters, Figs, Victoria’s Secret, Capri Holding, Tapestry, Canada Goose, Nordstrom, Lululemon, and Ulta Beauty are at risk. However, retailers targeting lower income or lower educational levels, or potentially older shoppers, such as National Vision, Burlington Stores, Ross Stores, Old Navy at Gap, and TJX, are seen as less risky.