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We’re getting to the end of earnings season but that means there will be retailers, and some technology companies.
But the retailers will be in focus, again, for clues about what is happening with the consumer. However, as we saw with Walmart and Target, not every retailer is seeing the same market conditions nor has the same customer.
Apparel, furniture, dollar stores, and beauty. Are they seeing a slowdown?
How is the supply chain and what is happening with inflationary pressures?
Williams-Sonoma has not missed on earnings in 5 years. What an incredible track record for a company selling furniture and home accessories during the COVID shutdowns, restrictions and supply chain issues.
Williams-Sonoma had been a big pandemic winner, and then sold off in 2022, only to rally 50% in the last 3 months. What a wild ride.
Shares are cheap, with a forward P/E of 10. Williams-Sonoma pays a dividend, currently yielding 1.9%.
This Week's 5 Top Retail Earnings Charts
We’re getting to the end of earnings season but that means there will be retailers, and some technology companies.
But the retailers will be in focus, again, for clues about what is happening with the consumer. However, as we saw with Walmart and Target, not every retailer is seeing the same market conditions nor has the same customer.
Apparel, furniture, dollar stores, and beauty. Are they seeing a slowdown?
How is the supply chain and what is happening with inflationary pressures?
We will find out this week.
This Week’s 5 Top Retail Earnings Charts
1. Urban Outfitters, Inc. (URBN - Free Report)
Urban Outfitters is more than just Urban. It also owns Anthropologie and Free People.
Urban Outfitters has missed two quarters in a row. The shares are down 24% year-to-date.
It’s cheap with a forward P/E of 10.4 but will Urban Outfitters sink further on another earnings miss?
2. Williams-Sonoma, Inc. (WSM - Free Report)
Williams-Sonoma has not missed on earnings in 5 years. What an incredible track record for a company selling furniture and home accessories during the COVID shutdowns, restrictions and supply chain issues.
Williams-Sonoma had been a big pandemic winner, and then sold off in 2022, only to rally 50% in the last 3 months. What a wild ride.
Shares are cheap, with a forward P/E of 10. Williams-Sonoma pays a dividend, currently yielding 1.9%.
Will this rally hold up in Williams-Sonoma?
3. Dollar General (DG - Free Report)
Dollar General has beat 5 quarters in a row even with the inflationary and supply chain pressures.
Shares are at new 5-year highs, gaining 244% over that time period compared to just 74% in the S&P 500.
Dollar General isn’t cheap. It has a forward P/E of 22.
Will Dollar General keep its momentum?
4. Ulta Beauty, Inc. (ULTA - Free Report)
Ulta Beauty has beat on the earnings 8 quarters in a row. That’s an impressive streak given the pandemic.
Ulta Beauty shares have been holding up better than most other retailers, and are down just 2% year-to-date.
It doesn’t pay a dividend but it started a massive $2 billion share buyback program in March 2022.
Ulta Beauty has a forward P/E of 20 so it’s not cheap.
Beauty has been a strong retail category in 2022. Can Ulta Beauty beat again?
5. The Gap, Inc. (GPS - Free Report)
The Gap is coming off a big earnings miss last quarter.
Shares are down 43% year-to-date but have bounced off the recent lows.
The Gap, which has four core brands of Gap, Banana Republic, Old Navy and Athleta, is expected to lose $0.05 a share this year but rebound next year.
The Gap pays a dividend, currently yielding 6%. But will that big dividend stick around for long?
Should investors be cautious jumping into The Gap?
[In full disclosure, Tracey owns shares of Ulta Beauty in her personal portfolio.]