In October, the retail sales rose by 0.4% compared to 0.3% expected by economists. On the other hand, September saw an increase of 0.8% after the revision.

The surge in retail sales for the past month is partly attributed to rising prices, but economists agree that the main reason is simple: increased spending. Electronics and appliances stores and auto dealers have been the main drivers of the jump, rising 2.3% and 1.6%.

Some sectors, on the other hand, saw a moderate decline, including furniture stores, clothing stores, and pharmacies.

“The solid rise in retail sales in October comes on the heels of a sharply revised higher spending splurge in September, which indicates that consumers maintained upbeat spending momentum at the start of Q4,” Kathy Bostjancic, Chief Economist at retail banking company Nationwide, said. “This supports our forecast that GDP growth expands a solid 2% this quarter, albeit a moderation from the 2.8% growth in Q3.”

The increased spending isn’t expected to spill over to next month and result in a robust holiday shopping season. Americans still remain vary of inflated prices and will likely be cautious with their holiday spending.

The post Retail Sales Jump More Than Expected as Consumer Spending Remains Resilient appeared first on theprimarymarket.com.

The largest increase since January, retail sales were largely driven by motor vehicle sales and spare parts, which rose by 3.6%. Electronics and appliance store sales were up by 1.6%. Healthcare and personal care stores saw an uptick in sales of 0.8% monthly and 3.4% year-over-year. Food and beverage sales were up 0.9% month-over-month and 2.9% on an annual basis.

Best Buy emerged as one of the standout stocks for the month, given its broad selection of consumer electronics, food, entertainment software, and home office products. Kimberly-Clark was a standout healthcare product provider, with its products being distributed to drugstores, grocery stores, wholesalers, and healthcare establishments. Shifting focus to foods and beverages, Pilgrim’s Pride was a standout performer with its range of prepared foods.

The post U.S. Retail Sales Rise in July appeared first on theprimarymarket.com.

Same-store sales are expected to rise by 3.41% compared to 6.30% last year. Despite a slowing pace, same-store sales continue to grow as groceries continue to be the main driver of revenue. “Keep in mind that Walmart sells mostly groceries and other household products, and it’s taking market share, so what it has been experiencing is going to be a bit different than what other retailers have been experiencing,” UBS analyst Michael Lasser stated. Foot traffic rose 2.82%, compared to 2.90% in 2023, while ticket growth came in at 1.27%, lower than the previous year’s 3.40% growth. Walmart’s e-commerce business grew by 2.10%, compared to 2.30% last year.

UBS expects Walmart to lift its full-year guidance as a result of its steady quarterly performance. Walmart’s shares have gained 27.5% for the year so far, almost doubling the S&P 500’s growth of 14%.

The post Walmart Set to Report Revenue Growth appeared first on theprimarymarket.com.

Retail sales bounced back from April, which featured a 0.2% decline, while also increasing 2.3% on a year-over-year basis. However, with cars and gas excluded, the retail sales actually decreased by 0.1% in May compared to an estimated 0.4% jump.

The gas contributed to the overall weaker increase as sales at gasoline pumps declined by 2.2% compared to April. Furniture sales were 1.1% down, while specialty store sales increased by 2.8%.

The most recent slowdown in retail sales is showing that consumers are continuing to feel the pressure of inflation and high interest rates that have caused rising prices.  

“Consumer spending is slowing because real incomes growth is moderating and because some consumers are becoming credit constrained amid elevated interest rates and rising credit card utilization,” Michael Pearce, deputy Chief US economist at Oxford Economics, told clients in a note shared by Yahoo Finance.

Some relief might be coming later this year as promising inflation data could lead to cuts in interest rates. The Federal Reserve announced last week that it plans one rate cut in 2024 although economy experts say that two cuts are real possibility.

The post Retail Sales in the U.S. See Weaker Increase Than Expected appeared first on theprimarymarket.com.

Company CEO Brian Cornell has expressed confidence that the department store chain will embark on a positive growth trajectory “from a comparable sales standpoint, from a traffic standpoint, and from a [market] share standpoint.” He explained that Target will focus on opening new stores, introducing private-label brands, revamping existing stores, and unveiling a new membership program providing perks including faster delivery times.

Stifel analyst Mark Astrachan explained in a note to clients that the firm is optimistic about Target’s growth prospects. “We think F4Q results and guidance were better-than-feared. Guidance anticipates a sequential improvement through F2024. This is largely consistent with our expectations that discretionary spending intentions are improving, including amongst lower income households,” the note read.

The post Target Shares Jump as Earnings Exceed Expectation appeared first on theprimarymarket.com.

This slump appeared to mostly stem from a 38% decline in profit in the company’s chip division, resulting from higher expenses and weaker image sensor sales. Still, the company was able to hit its sales target of 25 million PlayStation 5 (PS5) consoles for the entire financial year. 4.9 million units were sold in the quarter, bringing this year’s total sales to 8.2 million units.

In response to its strong PS5 sales, Sony upped its full-year sales forecast by almost 5% to 190 billion yen. The company has maintained its full-year operating profit outlook of 1.17 trillion yen while raising its sales and net income forecast by 2% each.

The post Sony Profit Falls on Weaker Chip Sales appeared first on theprimarymarket.com.

Despite the Federal Reserve’s continued tight fiscal policy in the face of stubborn inflation, consumer spending has remained high. The September report released by the Commerce Department showed that spending remained largely unaffected by a tightening credit environment and gas prices hitting 2023 highs as well as a revival in student loan repayments.

“While mounting headwinds to consumer incomes mean we expect spending growth to slow in the months ahead, the risks that spending contracts outright are fading,” Oxford Economics lead U.S. economist Michael Pearce observed of the current economic climate.

The post Retail Sales Beat Forecasts Amid Consumer Resilience appeared first on theprimarymarket.com.

While Dollar General typically does better during times of financial hardship, as happened in 2008 when its sales rose by 9.4%, this year has proven different. Sales fell during the second quarter of 2023, with the company’s stock devaluing by over 50% since the start of the year. The company subsequently lowered its full-year earnings forecast and expects a decrease of 22% to 34% for the year.

Primarily targeting lower- and middle-income shoppers, Dollar General is focused on drawing in new customers through its drug and grocery departments. “We still see, from a share perspective, where our primary dollars are the same they’ve been for many, many years,” Owen explained. “And we believe there’s still much share for us to gain there, and that’s primarily drug and grocery.”

The post Dollar General Looks to Grow Grocery Business appeared first on theprimarymarket.com.

“Losses from theft are at historical highs,” Nordstrom CEO Erik Nordstrom observed. “And I’d say we find it unacceptable and needs to be addressed.” Shares retreated by 1% on Friday following Nordstrom’s comments.

Still, Nordstrom reported net sales of $3.66 billion, beating estimates of $3.61 billion. Adjusted earnings per share were $0.84, outpacing forecasts of $0.44. Although same-store sales were down by 8.3%, this still beat expectations of a 10.34% decline.

The company reiterated its 2023 outlook; a drop in retail sales and credit card revenues between 4% and 6% with adjusted earnings between $1.80 and $2.20.

The post Nordstrom Stock Jumps After Earnings Beat Estimates appeared first on theprimarymarket.com.

For the quarter ended July 29, Kohl’s earned a profit of $58 million, or 52 cents per share. Last year, Q2 profit stood at $143 million, translating to $1.11 per share. Total revenue fell from $4.09 billion last year to $3.9 billion. This beat analysts’ expectations of 23 cents per share on revenue of $3.76 billion.

Due to the challenging economic climate, Kohl’s looked to reduce its inventory and its spending as sales dried up due to stubborn inflation and higher interest rates that have affected consumer prices. Compared to the previous year, inventory was reduced by 14%.

The post Kohl’s Beats Wall Street Earnings Forecast Despite Profit Decline appeared first on theprimarymarket.com.

In October, the retail sales rose by 0.4% compared to 0.3% expected by economists. On the other hand, September saw an increase of 0.8% after the revision.

The surge in retail sales for the past month is partly attributed to rising prices, but economists agree that the main reason is simple: increased spending. Electronics and appliances stores and auto dealers have been the main drivers of the jump, rising 2.3% and 1.6%.

Some sectors, on the other hand, saw a moderate decline, including furniture stores, clothing stores, and pharmacies.

“The solid rise in retail sales in October comes on the heels of a sharply revised higher spending splurge in September, which indicates that consumers maintained upbeat spending momentum at the start of Q4,” Kathy Bostjancic, Chief Economist at retail banking company Nationwide, said. “This supports our forecast that GDP growth expands a solid 2% this quarter, albeit a moderation from the 2.8% growth in Q3.”

The increased spending isn’t expected to spill over to next month and result in a robust holiday shopping season. Americans still remain vary of inflated prices and will likely be cautious with their holiday spending.

The post Retail Sales Jump More Than Expected as Consumer Spending Remains Resilient appeared first on theprimarymarket.com.

The largest increase since January, retail sales were largely driven by motor vehicle sales and spare parts, which rose by 3.6%. Electronics and appliance store sales were up by 1.6%. Healthcare and personal care stores saw an uptick in sales of 0.8% monthly and 3.4% year-over-year. Food and beverage sales were up 0.9% month-over-month and 2.9% on an annual basis.

Best Buy emerged as one of the standout stocks for the month, given its broad selection of consumer electronics, food, entertainment software, and home office products. Kimberly-Clark was a standout healthcare product provider, with its products being distributed to drugstores, grocery stores, wholesalers, and healthcare establishments. Shifting focus to foods and beverages, Pilgrim’s Pride was a standout performer with its range of prepared foods.

The post U.S. Retail Sales Rise in July appeared first on theprimarymarket.com.

Same-store sales are expected to rise by 3.41% compared to 6.30% last year. Despite a slowing pace, same-store sales continue to grow as groceries continue to be the main driver of revenue. “Keep in mind that Walmart sells mostly groceries and other household products, and it’s taking market share, so what it has been experiencing is going to be a bit different than what other retailers have been experiencing,” UBS analyst Michael Lasser stated. Foot traffic rose 2.82%, compared to 2.90% in 2023, while ticket growth came in at 1.27%, lower than the previous year’s 3.40% growth. Walmart’s e-commerce business grew by 2.10%, compared to 2.30% last year.

UBS expects Walmart to lift its full-year guidance as a result of its steady quarterly performance. Walmart’s shares have gained 27.5% for the year so far, almost doubling the S&P 500’s growth of 14%.

The post Walmart Set to Report Revenue Growth appeared first on theprimarymarket.com.

Retail sales bounced back from April, which featured a 0.2% decline, while also increasing 2.3% on a year-over-year basis. However, with cars and gas excluded, the retail sales actually decreased by 0.1% in May compared to an estimated 0.4% jump.

The gas contributed to the overall weaker increase as sales at gasoline pumps declined by 2.2% compared to April. Furniture sales were 1.1% down, while specialty store sales increased by 2.8%.

The most recent slowdown in retail sales is showing that consumers are continuing to feel the pressure of inflation and high interest rates that have caused rising prices.  

“Consumer spending is slowing because real incomes growth is moderating and because some consumers are becoming credit constrained amid elevated interest rates and rising credit card utilization,” Michael Pearce, deputy Chief US economist at Oxford Economics, told clients in a note shared by Yahoo Finance.

Some relief might be coming later this year as promising inflation data could lead to cuts in interest rates. The Federal Reserve announced last week that it plans one rate cut in 2024 although economy experts say that two cuts are real possibility.

The post Retail Sales in the U.S. See Weaker Increase Than Expected appeared first on theprimarymarket.com.

Company CEO Brian Cornell has expressed confidence that the department store chain will embark on a positive growth trajectory “from a comparable sales standpoint, from a traffic standpoint, and from a [market] share standpoint.” He explained that Target will focus on opening new stores, introducing private-label brands, revamping existing stores, and unveiling a new membership program providing perks including faster delivery times.

Stifel analyst Mark Astrachan explained in a note to clients that the firm is optimistic about Target’s growth prospects. “We think F4Q results and guidance were better-than-feared. Guidance anticipates a sequential improvement through F2024. This is largely consistent with our expectations that discretionary spending intentions are improving, including amongst lower income households,” the note read.

The post Target Shares Jump as Earnings Exceed Expectation appeared first on theprimarymarket.com.

This slump appeared to mostly stem from a 38% decline in profit in the company’s chip division, resulting from higher expenses and weaker image sensor sales. Still, the company was able to hit its sales target of 25 million PlayStation 5 (PS5) consoles for the entire financial year. 4.9 million units were sold in the quarter, bringing this year’s total sales to 8.2 million units.

In response to its strong PS5 sales, Sony upped its full-year sales forecast by almost 5% to 190 billion yen. The company has maintained its full-year operating profit outlook of 1.17 trillion yen while raising its sales and net income forecast by 2% each.

The post Sony Profit Falls on Weaker Chip Sales appeared first on theprimarymarket.com.

Despite the Federal Reserve’s continued tight fiscal policy in the face of stubborn inflation, consumer spending has remained high. The September report released by the Commerce Department showed that spending remained largely unaffected by a tightening credit environment and gas prices hitting 2023 highs as well as a revival in student loan repayments.

“While mounting headwinds to consumer incomes mean we expect spending growth to slow in the months ahead, the risks that spending contracts outright are fading,” Oxford Economics lead U.S. economist Michael Pearce observed of the current economic climate.

The post Retail Sales Beat Forecasts Amid Consumer Resilience appeared first on theprimarymarket.com.

While Dollar General typically does better during times of financial hardship, as happened in 2008 when its sales rose by 9.4%, this year has proven different. Sales fell during the second quarter of 2023, with the company’s stock devaluing by over 50% since the start of the year. The company subsequently lowered its full-year earnings forecast and expects a decrease of 22% to 34% for the year.

Primarily targeting lower- and middle-income shoppers, Dollar General is focused on drawing in new customers through its drug and grocery departments. “We still see, from a share perspective, where our primary dollars are the same they’ve been for many, many years,” Owen explained. “And we believe there’s still much share for us to gain there, and that’s primarily drug and grocery.”

The post Dollar General Looks to Grow Grocery Business appeared first on theprimarymarket.com.

“Losses from theft are at historical highs,” Nordstrom CEO Erik Nordstrom observed. “And I’d say we find it unacceptable and needs to be addressed.” Shares retreated by 1% on Friday following Nordstrom’s comments.

Still, Nordstrom reported net sales of $3.66 billion, beating estimates of $3.61 billion. Adjusted earnings per share were $0.84, outpacing forecasts of $0.44. Although same-store sales were down by 8.3%, this still beat expectations of a 10.34% decline.

The company reiterated its 2023 outlook; a drop in retail sales and credit card revenues between 4% and 6% with adjusted earnings between $1.80 and $2.20.

The post Nordstrom Stock Jumps After Earnings Beat Estimates appeared first on theprimarymarket.com.

For the quarter ended July 29, Kohl’s earned a profit of $58 million, or 52 cents per share. Last year, Q2 profit stood at $143 million, translating to $1.11 per share. Total revenue fell from $4.09 billion last year to $3.9 billion. This beat analysts’ expectations of 23 cents per share on revenue of $3.76 billion.

Due to the challenging economic climate, Kohl’s looked to reduce its inventory and its spending as sales dried up due to stubborn inflation and higher interest rates that have affected consumer prices. Compared to the previous year, inventory was reduced by 14%.

The post Kohl’s Beats Wall Street Earnings Forecast Despite Profit Decline appeared first on theprimarymarket.com.