The tail end of the second-quarter earnings reporting season lies ahead, but the companies reporting results this week will serve as a checkup on a wealthier consumer — or at least on shoppers’ willingness to treat themselves.
Rivals include the usual, like Adidas ADDYY, +0.63%, as well as newer ones, like running-shoe maker On Holding ONON, -2.36%. Chief Executive John Donahoe, during Nike’s earnings call in June, said competition in the running-shoe business has been “a competitive battlefield lately with more and more brands joining the market.” However, he said, Nike had become “more aligned and resourced” to compete.
But even as retailers remain cautious about stocking shelves with new products — thanks to the aforementioned higher prices that have left the economy in flux — Kernan said he expected an increase in sales through Nike’s own e-commerce and store channels. And he said he was upbeat on Nike’s stock as the market improves overall.
The calls to put on your calendar Smaller companies, bigger spenders? Other results during the week will offer a look at deeper-pocketed customers. While many of those customers remain better-protected from the inflation storm that began last year, companies tend to rely on them for bigger profits. Earnings on Tuesday from United Natural Foods Inc., UNFI, -2.08%, the primary grocery distributor for Whole Foods, will give some sense of how wealthier shoppers are navigating higher food prices.