Over the next few days, expected earnings reports will span a spectrum from popular home fitness giant Peloton to green energy giant Jinko Solar. Notably, so many businesses and industries continue to grapple with factors such as supply chain issues, inflationary pressure, and inventory overloads, which makes the story even more interesting. as reports are released. While it’s impossible to pinpoint who the winners and pluses will be, here are a few names I’ll be watching with great interest this week.
Macy’s reports Tuesday before markets open
Why: As major department store names that will report earnings this week, they are both fantastic barometers to help shape the overall picture of the industry. The department store industry has been through a lot over the past few years, and the pandemic-related issues certainly haven’t helped. According to the Census Bureau’s Retail Report, consumers spent $11.191 billion in department stores in July, compared to $11.246 billion in June and $11.527 billion in May. Meanwhile, Macy’s and Nordstrom recently reported EPS beats.
My question: With overall department store spending fluctuating over the past few months, inflation being what it is and the potential for unlimited inventory, who will benefit more: the customer or the business?
Petco-reporting Wednesday before markets open
Why: Last May, the ASPCA estimated that nearly one in five American households had acquired a cat or dog since the start of the COVID-19 pandemic. This estimate puts nearly 23 million furry friends in our homes. When family members were more at home, pet needs such as training, walking, and companionship were an easier affair for many families, but with more classroom and office feedback, it It’s probably natural to expect some kind of spike in overall customer needs at pet retail and service stores.
My question: What is the current demand for pet supplies and services and where does Petco see it going?
Abercrombie & Fitch
Gap, Inc. reports Thursday after markets close
Why: Like many retailers that once dominated the mall and the proverbial “cool kids” tables across the country, there is certainly an identity crisis in the industry related to mall closures, declining interest and external competitors. Chip West, a retail and consumer behavior expert at Vericast, noted that “brand loyalty is dead,” in a recent report in response 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 countdown, as consumers demand more eco-friendly options Because fashion is often traditionally more fleeting, the eco-awareness factor is driving more companies to think about the big picture and better meet green demands.
My question: Have these companies pivoted to accommodate the additional pressures and demands, and if so, have consumers reacted positively or negatively?
Why: To quote that famous guy who said it best, “it’s the economy”, folks. We have all felt the price spike everywhere, including at the supermarket. Add in a shortage of items here or there and the high costs plus bare shelves could naturally result in consumer pessimism galore. Enter discounters, like Dollar Tree and Dollar General, which offer the products to consumers at lower prices. According to the Census Bureau, consumers spent $78.964 billion at food and beverage stores in July, compared to $78.803 billion in June and $78.111 billion in May.
My question: Did foot traffic increase as consumers took more money and if so, by how much?
ULTA-reporting Thursday after market close
Why: It’s no secret that we all want to look and feel our best, but as more and more of us reintegrate “life” as we once knew it under this new normal, need or desire to improve or refresh our appearance is understandable. In the time of COVID-19 home living, beauty and DIY upgrades have become all the rage and the norm for consumers to compensate for pesky things like new growth after dyeing their hair. hair or not being able to go to the spa for a facial or a manicure. /pedi.
My question: Have consumers fallen in love with home DIY and beauty or are they partly here to stay?