Will Retail Earnings Continue to Highlight a US Consumer That’s Tapped Out?

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The retail earnings parade kicks off this week with results from Walmart, Home Depot, Tapestry and Dillard’sDJIA

But to that end, a new report by TransUnion found that the average credit card balance in the US is now $6,329, up nearly 5% from last year. The story remains that the consumer may be stretched, and this week we’ll get results from Walmart stands at 186, well above the baseline reading, suggesting companies continue to feel less certain about economic conditions than they did at the beginning of the year. As of August 9, 2024 there were 151 late outliers and 73 early outliers.

Agilent is set to report their FQ3 2024 results on Wednesday, August 21, over a week later than expected, later than usual, and the latest they’ve ever reported for the quarter. This also appears to be their first Wednesday report since 2019, favoring Tuesday reports for the last four years. A slowdown in consumer spending may not bode well for discretionary retailers such as Bath & Body Works, the last two quarters have seen no revenue growth, while impressive bottom-line growth continues. However, that could be coming to an end. According to data from FactSet, the sell-side is expecting an EPS drop of 10% for BBWI in Q2.The Q2 2024 earnings season will continue to thin out from here, with only 1,681 companies expected to report this week.

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