Department store chains Macy’s and Kohl’s both reported quarterly results that smashed expectations on Thursday, with both companies raising their forecasts for the year and continuing the trend of strong retail earnings this week.Earlier this week, big-box retailers like Walmart and Target also handily beat quarterly profit and revenue estimates thanks to growth in digital and same-store sales, while also raising financial guidance for the year.
Both retailers admitted they were absorbing higher costs from supply chain issues and labor shortages rather than pass them on to consumers, however: Shares of Walmart and Target are both down since earnings, falling 3.5% and 5.5%, respectively. Home improvement chains like Home Depot and Lowe’s, meanwhile, beat earnings expectations thanks to a strong housing market—with consumers continuing to spend even as prices for houses and construction materials have surged since last year.
Home Depot’s stock has risen over 9% after earnings on Tuesday, while shares of Lowe’s are up 1% since reporting on Wednesday.Retail earnings have been strong in part thanks to massive stock buybacks that have resumed this year after being paused during the pandemic. Buying their own stock allows companies to reduce share count and therefore make earnings look stronger, even if revenue growth has only been modest.
CNBC on Wednesday. The “big issue” facing retailers is “steadily rising prices, which are a threat to profit margins” and could at some point affect the consumer.
People need things. Kids won't stop growing. Millennials are finally buying their own goods separate from their parents, GenZ want their own stuff too. Home Goods are worn out due to overuse during the pandemic. Things need to be replaced.
Singapore Singapore Latest News, Singapore Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: WSJ - 🏆 98. / 63 Read more »
Source: CNBC - 🏆 12. / 72 Read more »