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Decoding Mastercard (MA) SpendingPulse's Holiday Sales Data
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Mastercard Incorporated's (MA - Free Report) report showed that U.S. retail sales witnessed a 7.6% year-over-year jump this holiday season. Data provided by Mastercard SpendingPulse for the period between Nov 1 and Dec 24 showed that steep discounts attracted consumers this holiday season despite inflationary pressures.
The increase in U.S. retail sales was higher than Mastercard’s expectation of 7.1% but was lower than 8.5% growth witnessed last year. Inflation, rising interest rates and fears of looming recession kept consumers cautious, while they kept hunting for aggressive discounts. The data, not adjusted for inflation, also showed an increase in essential purchases, while non-essential goods and services took a backseat.
The rise in retail sales figure (which excludes automotive sales), despite economic constraints, shows the resilience of consumers. E-commerce sales rose 10.6% year over year, while in-store sales grew 6.8% during the holiday season. Restaurant sales witnessed a significant 15.1% year-over-year jump, as apparel and department stores countered 4.4% and 1% increases, respectively. However, electronics and jewelry sales fell 5.3% and 5.4% year over year, respectively.
As large discounts provided by retailers brought in more customers, pushing the sales figures up, it might have affected the margins to some degree. The growing sales momentum are expected to help retailers bring inventory levels down to normal. However, the brutal blizzard sweeping across the country might slow things down a bit. The deadly storm has also affected travel routes.
The savings made by consumers during the pandemic played a significant role in fueling consumer spending this holiday season. With inflation rate growth expected to be curbed in the coming days, the purchasing power of consumers is likely to improve. This might allow retailers to further reduce their excess inventory.
Price Movements
Shares of Mastercard have declined 4.6% in the past year compared with the industry’s 16.3% fall.
Based in Henderson, NV, PaySign offers prepaid card products and processing services. The Zacks Consensus Estimate for PAYS’ 2022 earnings indicates a 340% year-over-year surge.
Headquartered in Stamford, CT, Information Services is a global technology research and advisory company. The Zacks Consensus Estimate for III’s 2022 earnings indicates 15.9% year-over-year growth.
Morehead, KY-based AppHarvest works as an applied agricultural technology firm. The Zacks Consensus Estimate for APPH’s 2022 bottom line indicates a 13.9% year-over-year improvement.
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Decoding Mastercard (MA) SpendingPulse's Holiday Sales Data
Mastercard Incorporated's (MA - Free Report) report showed that U.S. retail sales witnessed a 7.6% year-over-year jump this holiday season. Data provided by Mastercard SpendingPulse for the period between Nov 1 and Dec 24 showed that steep discounts attracted consumers this holiday season despite inflationary pressures.
The increase in U.S. retail sales was higher than Mastercard’s expectation of 7.1% but was lower than 8.5% growth witnessed last year. Inflation, rising interest rates and fears of looming recession kept consumers cautious, while they kept hunting for aggressive discounts. The data, not adjusted for inflation, also showed an increase in essential purchases, while non-essential goods and services took a backseat.
The rise in retail sales figure (which excludes automotive sales), despite economic constraints, shows the resilience of consumers. E-commerce sales rose 10.6% year over year, while in-store sales grew 6.8% during the holiday season. Restaurant sales witnessed a significant 15.1% year-over-year jump, as apparel and department stores countered 4.4% and 1% increases, respectively. However, electronics and jewelry sales fell 5.3% and 5.4% year over year, respectively.
As large discounts provided by retailers brought in more customers, pushing the sales figures up, it might have affected the margins to some degree. The growing sales momentum are expected to help retailers bring inventory levels down to normal. However, the brutal blizzard sweeping across the country might slow things down a bit. The deadly storm has also affected travel routes.
The savings made by consumers during the pandemic played a significant role in fueling consumer spending this holiday season. With inflation rate growth expected to be curbed in the coming days, the purchasing power of consumers is likely to improve. This might allow retailers to further reduce their excess inventory.
Price Movements
Shares of Mastercard have declined 4.6% in the past year compared with the industry’s 16.3% fall.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Mastercard currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Business Services space are PaySign, Inc. (PAYS - Free Report) , Information Services Group, Inc. (III - Free Report) and AppHarvest, Inc. , all carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Based in Henderson, NV, PaySign offers prepaid card products and processing services. The Zacks Consensus Estimate for PAYS’ 2022 earnings indicates a 340% year-over-year surge.
Headquartered in Stamford, CT, Information Services is a global technology research and advisory company. The Zacks Consensus Estimate for III’s 2022 earnings indicates 15.9% year-over-year growth.
Morehead, KY-based AppHarvest works as an applied agricultural technology firm. The Zacks Consensus Estimate for APPH’s 2022 bottom line indicates a 13.9% year-over-year improvement.