Shopping centers could come back. This week’s retail revenue is a key sign.

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Best Buy will release its numbers on Thursday.

Patrick T. Fallon / AFP via Getty Images

Get ready for another busy week of trading profits and maybe revenge on the Mall.

Thursday will be very busy, bringing a multitude of results, including from big box players

Best buy

(ticker: BBY) and

Costco Wholesale

(COST). Both have been the big winners from the pandemic – and now both are wondering how long the good times can continue.

Investors may still be trying to catch their breath from last week’s wall-to-wall calendar. The large Target big box retailers (TGT) and

Walmart

(WMT) delivered hit numbers, which led to stock market gains. Home improvement giants

Home Depot

(HD) and Lowe’s (LOW) also had exceptional quarters, although their shares fell. And the market showed no love for the strong profits at Kohl’s (KSS) department store, although the surprise profit from rival Macy (M) did allow its stock to gain a brief momentum.

The drastically different reactions make everyone wonder how investors are going to react to the next round of reports.

Best Buy exploded as people rushed to work, learn, and play from home, often with the help of consumer electronics. But its February numbers were mixed, triggering at least one downgrade. That said, there are investors who are bullish on the strong sales numbers from the latest round of stimulus checks, as well as the company’s foray into the world of retail memberships a few months ago.

Costco, of course, is the king of retail subscriptions, with sky-high renewal rates and a focus on value that has resonated with consumers over the past year, first for essentials and later for essentials. more discretionary articles. This led to increased same store sales month after month, although it didn’t always help the stock. Investors will be on the lookout for the same increase in discretionary sales that Target and Walmart have had in their quarters.

Like Best Buy, however, Costco’s most recent revenue has been mixed. The company also increased its starting hourly wage to $ 16, from $ 15 in March, a move CEO Craig Jelinek spoke about during a Senate budget committee on raising the federal minimum wage. Jelinek testified that the higher amount gave Costco a “competitive advantage” over competitors and helped retain workers.

Discounters

General dollar

(DG) and

Dollar tree

(DLTR) is also expected to report on Thursday. Dollar General stock fell after the company reported earnings in March; many analysts are still fans, but others have their doubts, given the tough comparisons with a stellar 2020 and less dollars from stimulus checks. Dollar Tree stock has climbed after the retailer’s most recent earnings, although it also faces some of the same challenges as Dollar General, including higher labor costs. Both stocks are higher since Barron recommended them in mid-2020.

Completing the reports for the non-price sector is

Large lots

(BIG) and

Burlington Stores

(BURL), both Fridays. Burlington is a real star, with stocks up 87% since Barron recommended them in May 2019, double the return of the S&P 500. Hopes will be high considering the biggest player in the industry,

TJX

Cos. (TJX), performed well last week, as did peers

Ross Stores

(ROST).

On the other end of the spectrum, department store Nordstrom (JWN) is under pressure to beat expectations like rivals Kohl’s and Macy’s. The company’s shares are up more than 20% since Barron’s recommended them earlier this year.

Elsewhere in the mall, investors can expect reports from a number of household names, including Abercrombie & Fitch (ANF),

American Eagle Outfitters

(AEO), Gap (GPS) and

Urban Outfitters

(URBN). All have posted large double-digit gains since the start of the year, outpacing the market in general, with investors anticipating easy comparisons to last year and a resurgence in demand for clothing driven by changing trends. fashion and economic reopening. Revenue will be an early indicator if sales can live up to the hype.

Ulta Beauty (ULTA) and

Beauty elf

(ELF) also has a presence in shopping malls – and could benefit from the same reopening trends as clothing vendors. Many consumers have stepped up their skincare routines during the pandemic – a trend that looks set to last – even as they used less makeup. But a return to schools, offices, and social gatherings will bolster cosmetics sales – part of the rationale for Barron’s bullish call on the elves in March; since then, the stock has outperformed its benchmark small cap index.

The winnings of a handful of other players are also due.

AutoZone

(AZO) will aim to score another good quarter, a goal some analysts clearly believe is achievable as more Americans get back on the road. Dick’s Sporting Goods (DKS) fell when it gave pessimistic advice in March, although the pandemic beneficiary maintained above-market gains. And the Covid winner and analyst favorite

Williams-Sonoma

(WSM) has a high bar to cross after last year – and the last quarter – easily beat expectations, although the Bulls argue it’s up to the task.

Write to Teresa Rivas at [email protected]


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