Maybe the retail apocalypse will be put off. Target's dire pronouncements earlier this week had everyone convinced another leg down in earnings was coming for the retailers. Reports in the last 24 hours have eased some of those concerns. Foot Locker reported "strong" momentum and raised full year guidance. Ross Stores beat expectations and also raised guidance. Gap beat expectations on the most important metrics . Only Williams-Sonoma was a disappointment.
Both Ross Stores and Gap noted high inventory levels, with Ross Stores calling out a "very promotional holiday selling season." Still, it will likely cause analysts to hesitate before slashing retail earnings estimates more than they already have. It's been a disastrous year for retailers. In the third quarter, earnings for the retail sector of the S & P 500 were down 9.3% from the same period a year ago, according to Refinitiv.