Retail sector preview for upcoming earnings reports shows mixed results, highlighting possible impact on market.

From NASDAQ.: 2024-08-09 18:33:00

With Walmart shares holding steady in market turmoil, the company’s upcoming quarterly report on August 15th will provide insight into consumer economy health. Home Depot’s report on August 13th focuses on the struggling housing market due to higher mortgage rates. Inflation and Retail Sales readings will also be released this week pre-Fed easing.

Walmart’s defensive strategy leverages its grocery exposure and value reputation. With expected $0.65 EPS on $168.4B revenue and focus on non-grocery growth, the retailer aims to stabilize demand in discretionary categories. The company’s digital expansion includes a growing advertising business, showcasing strong performance despite a vulnerable lower-income consumer segment.

The Q2 retail earnings season so far shows a 26.2% earnings increase on 6.1% revenue growth, with 52.2% EPS beats. However, online and restaurant companies, including Amazon, struggled in Q2 to meet earnings and revenue estimates. The convergence of digital and brick-and-mortar retail has been accelerated by the pandemic lockdowns. Labor market strength against inflation remains a crucial factor in consumer spending trends.



Read more at NASDAQ.:: Retail Earnings Loom: A Preview