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5 Crucial Retail Earnings Charts to Watch This Week

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Around 90 companies are expected to report earnings this week including many of the hottest retailers of the last 16 months.

The retailers have all seen big rallies off their coronavirus lows, but these 5 have busted out to multi-year highs this year.

It’s been a have, and have-not, scenario among the retailers during the pandemic. The apparel retailers mostly got crushed early in the pandemic as kids stayed home from school and many adults worked from home and big events like weddings, proms and other parties were cancelled.

Why buy any new clothes?

Furniture, and outdoor products, including athletic gear, however, crushed it as consumer patterns changed to accommodate social distancing and staycations.

Did you try and buy that exercise bike or free weights?

But what happens now on the reopen?

Does the pendulum swing back to the apparel retailers in 2021 and 2022?

5 Critical Retail Earnings Charts to Watch this Week

1.    Urban Outfitters (URBN - Free Report) has beat 4 quarters in a row. Shares are up big in 2021, gaining 47%, but most of that came at the beginning of the year. The owner of Urban Outfitters, Anthropologie and Free People is perfectly situated to take advantage of both back-to-school and back-to-work. It’s trading with a forward P/E of 14.5. Is it still a deal?

2.    Dick’s Sporting Goods (DKS - Free Report) has beat 4 quarters in a row. It was a big winner in 2020 as consumers rushed to buy outdoor gear. But shares haven’t stopped rallying in 2021, up 95% year-to-date and hitting new highs going into the report. It is trading with a forward P/E of just 12 but is it too hot to handle?

3.    Ulta Beauty (ULTA - Free Report) has beat 4 quarters in a row and recently busted out to new 5-year highs. It was expected to be a big winner on the reopen and consumers ripped off their masks. But will the Delta variant outbreak, and the reissuing of some mask mandates, put a damper on guidance?

4.    Burlington Stores (BURL - Free Report) has beat 4 quarters in a row and has only missed twice in the last 5 years. Impressive. It has been one of the hottest retailers over the last 5 years, with shares up 338% compared to the S&P 500 up 103%. Can it keep breaking out?

5.    The Gap, Inc. (GPS - Free Report) has beat 3 out of the last 4 quarters. Shares have bounced off 2020’s multi-year low and are up 40% year-to-date. They’ve pulled back off their May highs, however. Athleta was it’s hot pandemic brand but will Old Navy be a big back-to-school winner?

[In full disclosure, Tracey owns shares of ULTA in her personal portfolio.]