Bulging warehouses mean lean times for longer for US, European companies

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Retailers particularly have struggled with stocks of clothing and footwear as consumers splurge on holidays rather than goods as they did during pandemic lockdowns.

. Refinitiv data shows US and European companies are expected to report their worst quarterly results in years.Companies which stockpiled last year are finding it harder to shed inventories when higher borrowing costs and inflation crimp consumer demand, corporate executives and analysts said.

For London-listed Coats Group, which makes thread and yarn, things are improving, but the destocking has been deeper and lasted longer than usual. “Excess savings that consumers have built since the pandemic began are draining, and we think all of these excess savings could be depleted by year-end or early next year.”

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