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.

While Target’s earnings fell short of company expectations, big box rival Walmart reported a strong quarterly performance, growing both in-store and online sales and lifting its full-year guidance as a result.

“Historically, our value proposition has been known for everyday low prices and for providing that value for customers,” Walmart CFO John David Rainey explained. “And what we see right now is that convenience resonates just as much to our customer base. And if you’re a household that makes over $100,000 a year, you value convenience just as much as the next person.”

The post Mixed Signals Delivered From Retail Sector Following Earnings Week appeared first on theprimarymarket.com.

“The US inflation picture is moderating some,” Moeller explained following the company’s earnings report released on Friday morning. He did, however, caution that European resolute inflation could limit the retail giant’s earnings.

Net sales for the second quarter were $20.6 billion, beating the Wall Street consensus estimate of $20.06 billion. Organic sales growth for the period was 8%, outpacing the 5.97% forecast.

Gross profit margins for the quarter were 48.4%, exceeding the 44.6% posted a year ago.

Following the release of its latest earnings figures, P&G released its full-year profit outlook in the range of $6.25 to $6.43 per share. Wall Street estimates stand at $6.38 per share.

The post P&G CEO Expects Cooling Inflation to Push Profits Further Following Strong Q2 Results 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.

While Target’s earnings fell short of company expectations, big box rival Walmart reported a strong quarterly performance, growing both in-store and online sales and lifting its full-year guidance as a result.

“Historically, our value proposition has been known for everyday low prices and for providing that value for customers,” Walmart CFO John David Rainey explained. “And what we see right now is that convenience resonates just as much to our customer base. And if you’re a household that makes over $100,000 a year, you value convenience just as much as the next person.”

The post Mixed Signals Delivered From Retail Sector Following Earnings Week appeared first on theprimarymarket.com.

“The US inflation picture is moderating some,” Moeller explained following the company’s earnings report released on Friday morning. He did, however, caution that European resolute inflation could limit the retail giant’s earnings.

Net sales for the second quarter were $20.6 billion, beating the Wall Street consensus estimate of $20.06 billion. Organic sales growth for the period was 8%, outpacing the 5.97% forecast.

Gross profit margins for the quarter were 48.4%, exceeding the 44.6% posted a year ago.

Following the release of its latest earnings figures, P&G released its full-year profit outlook in the range of $6.25 to $6.43 per share. Wall Street estimates stand at $6.38 per share.

The post P&G CEO Expects Cooling Inflation to Push Profits Further Following Strong Q2 Results appeared first on theprimarymarket.com.