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November Sales Lift Retailers' Holiday Spirit: 4 Picks for You
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U.S. retailers are celebrating a robust rebound in November sales, setting a positive tone for the holiday shopping period. The latest data from the Commerce Department reveals a 0.3% increase in retail sales, totaling $705.7 billion. This defies analysts' expectations of a 0.1% decline and follows a revised 0.2% contraction in October. Despite ongoing challenges, such as inflation, higher borrowing costs and geopolitical tensions, Americans have showcased resilience.
A robust job market has been a key factor in bolstering consumer confidence and spending power. November saw the addition of an impressive 199,000 jobs to the U.S. economy, contributing to a low unemployment rate of 3.7%. The concurrent uptick in wage growth further solidified the link between a strong job market and increased consumer spending.
The National Retail Federation (“NRF”) is optimistic about the holiday season, projecting a 3% to 4% increase in sales for the November-December period. NRF anticipates sales between $957.3 billion and $966.6 billion, excluding autos, gas and restaurants. This reflects the industry's optimism about consumer spending during the festive period.
The unexpected surge in November retail sales aligns with the strategic efforts of retailers who have been enticing customers with discounts. Lower gasoline prices have added fuel to this momentum, freeing up additional funds for consumers to allocate to their holiday shopping endeavors. Excluding gasoline stations, retail sales grew 0.6%.
A Peek Into November Sales Numbers
The Commerce Department's latest report unveils a myriad of trends in retail sales. Motor vehicle & parts dealers experienced a 0.5% increase in sales on a sequential basis. Health & personal care stores saw a notable uptick of 0.9%, and food services & drinking places recorded a substantial 1.6% increase. Clothing & clothing accessories outlets also experienced a surge of 0.6%.
Meanwhile, sporting goods, hobbies, musical instruments & bookstores witnessed robust sales growth of 1.3%. Furniture & home furnishing stores reported a commendable 0.9% rise in sales, while food & beverage stores saw modest growth of 0.2%. Non-store retailers stood out with a noteworthy 1% increase in sales.
On the flip side, the outlook was less optimistic for building material & supplies dealers, where sales dipped by 0.4%. Electronics & appliance stores reported a notable drop of 1.1%. Gasoline stations witnessed a more pronounced decline of 2.9% in receipts. Miscellaneous stores and general merchandise stores registered a decrease of 2% and 0.2% in sales, respectively.
Past-Year Price Performance
Image Source: Zacks Investment Research
4 Prominent Picks
Amazon.com, Inc. (AMZN - Free Report) is worth considering. The company’s robust e-commerce platform, renowned for its vast product selection and efficient delivery services, continues to be a primary driver of revenue growth. Prime membership, a cornerstone of Amazon's success, not only fosters customer loyalty but also drives recurring revenues through subscription fees, offering members exclusive access to a myriad of services, such as expedited shipping.
The Zacks Consensus Estimate for Amazon’s current financial-year sales and EPS suggests growth of 11% and 276.1%, respectively, from the year-ago reported figure. AMZN, which sports a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 54.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors can count on Brinker International, Inc. (EAT - Free Report) , one of the world's leading casual dining restaurant companies. Brinker International is unwavering in its commitment to enhancing customer engagement and boosting revenues through various sales-boosting strategies. These include optimizing the menu and fostering innovation, reinforcing its value proposition, improving food presentation, implementing effective advertising campaigns, optimizing kitchen systems and introducing an enhanced service platform.
The Zacks Consensus Estimate for Brinker International's current financial-year sales and earnings suggests growth of 5.1% and 26.2%, respectively, from the year-ago reported figure. EAT, which sports a Zacks Rank #1, has a trailing four-quarter earnings surprise of 223.6%, on average.
Abercrombie & Fitch Co. (ANF - Free Report) is another potential pick. The company's ability to adapt, innovate and connect with customers positions it for a prosperous future. Abercrombie & Fitch’s regional operating model, with a focus on the Americas, the EMEA and the APAC, provides a solid foundation for global expansion. Its strong brand portfolio, operational efficiency and regional strategy make it an attractive investment opportunity as it continues to navigate and thrive in the evolving retail landscape.
This leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids delivered a trailing four-quarter earnings surprise of 713%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 13.3% from the year-ago period. The stock sports a Zacks Rank #1.
American Eagle Outfitters, Inc. (AEO - Free Report) is worth betting on. The company’s efforts to rationalize inventory and contain costs are paying off. The strong performance of key brands like American Eagle and Aerie, coupled with expansions into premium and activewear segments, indicates potential for growth. Its store designs and online enhancements demonstrate a commitment to improving the customer experience.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and EPS suggests growth of 4% and 39.2%, respectively, from the year-ago reported figure. AEO, which carries a Zacks Rank #2 (Buy), delivered a trailing four-quarter earnings surprise of 23%, on average.
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November Sales Lift Retailers' Holiday Spirit: 4 Picks for You
U.S. retailers are celebrating a robust rebound in November sales, setting a positive tone for the holiday shopping period. The latest data from the Commerce Department reveals a 0.3% increase in retail sales, totaling $705.7 billion. This defies analysts' expectations of a 0.1% decline and follows a revised 0.2% contraction in October. Despite ongoing challenges, such as inflation, higher borrowing costs and geopolitical tensions, Americans have showcased resilience.
A robust job market has been a key factor in bolstering consumer confidence and spending power. November saw the addition of an impressive 199,000 jobs to the U.S. economy, contributing to a low unemployment rate of 3.7%. The concurrent uptick in wage growth further solidified the link between a strong job market and increased consumer spending.
The National Retail Federation (“NRF”) is optimistic about the holiday season, projecting a 3% to 4% increase in sales for the November-December period. NRF anticipates sales between $957.3 billion and $966.6 billion, excluding autos, gas and restaurants. This reflects the industry's optimism about consumer spending during the festive period.
The unexpected surge in November retail sales aligns with the strategic efforts of retailers who have been enticing customers with discounts. Lower gasoline prices have added fuel to this momentum, freeing up additional funds for consumers to allocate to their holiday shopping endeavors. Excluding gasoline stations, retail sales grew 0.6%.
A Peek Into November Sales Numbers
The Commerce Department's latest report unveils a myriad of trends in retail sales. Motor vehicle & parts dealers experienced a 0.5% increase in sales on a sequential basis. Health & personal care stores saw a notable uptick of 0.9%, and food services & drinking places recorded a substantial 1.6% increase. Clothing & clothing accessories outlets also experienced a surge of 0.6%.
Meanwhile, sporting goods, hobbies, musical instruments & bookstores witnessed robust sales growth of 1.3%. Furniture & home furnishing stores reported a commendable 0.9% rise in sales, while food & beverage stores saw modest growth of 0.2%. Non-store retailers stood out with a noteworthy 1% increase in sales.
On the flip side, the outlook was less optimistic for building material & supplies dealers, where sales dipped by 0.4%. Electronics & appliance stores reported a notable drop of 1.1%. Gasoline stations witnessed a more pronounced decline of 2.9% in receipts. Miscellaneous stores and general merchandise stores registered a decrease of 2% and 0.2% in sales, respectively.
Past-Year Price Performance
Image Source: Zacks Investment Research
4 Prominent Picks
Amazon.com, Inc. (AMZN - Free Report) is worth considering. The company’s robust e-commerce platform, renowned for its vast product selection and efficient delivery services, continues to be a primary driver of revenue growth. Prime membership, a cornerstone of Amazon's success, not only fosters customer loyalty but also drives recurring revenues through subscription fees, offering members exclusive access to a myriad of services, such as expedited shipping.
The Zacks Consensus Estimate for Amazon’s current financial-year sales and EPS suggests growth of 11% and 276.1%, respectively, from the year-ago reported figure. AMZN, which sports a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 54.9%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors can count on Brinker International, Inc. (EAT - Free Report) , one of the world's leading casual dining restaurant companies. Brinker International is unwavering in its commitment to enhancing customer engagement and boosting revenues through various sales-boosting strategies. These include optimizing the menu and fostering innovation, reinforcing its value proposition, improving food presentation, implementing effective advertising campaigns, optimizing kitchen systems and introducing an enhanced service platform.
The Zacks Consensus Estimate for Brinker International's current financial-year sales and earnings suggests growth of 5.1% and 26.2%, respectively, from the year-ago reported figure. EAT, which sports a Zacks Rank #1, has a trailing four-quarter earnings surprise of 223.6%, on average.
Abercrombie & Fitch Co. (ANF - Free Report) is another potential pick. The company's ability to adapt, innovate and connect with customers positions it for a prosperous future. Abercrombie & Fitch’s regional operating model, with a focus on the Americas, the EMEA and the APAC, provides a solid foundation for global expansion. Its strong brand portfolio, operational efficiency and regional strategy make it an attractive investment opportunity as it continues to navigate and thrive in the evolving retail landscape.
This leading, global, omnichannel specialty retailer of apparel and accessories for men, women and kids delivered a trailing four-quarter earnings surprise of 713%, on average. The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 13.3% from the year-ago period. The stock sports a Zacks Rank #1.
American Eagle Outfitters, Inc. (AEO - Free Report) is worth betting on. The company’s efforts to rationalize inventory and contain costs are paying off. The strong performance of key brands like American Eagle and Aerie, coupled with expansions into premium and activewear segments, indicates potential for growth. Its store designs and online enhancements demonstrate a commitment to improving the customer experience.
The Zacks Consensus Estimate for American Eagle Outfitters’ current fiscal sales and EPS suggests growth of 4% and 39.2%, respectively, from the year-ago reported figure. AEO, which carries a Zacks Rank #2 (Buy), delivered a trailing four-quarter earnings surprise of 23%, on average.