American Consumer Confidence Falls with Concerns About the Economy

The Conference Board said Consumer Confidence fell in January, falling to 107.1 (below consensus 109.0) from an upwardly revised 109 in December. The Expectations Index retreated in January reflecting their concerns about the economy over the next six months. Consumers expect business conditions to worsen in the near term. Purchasing plans for autos and appliances held steady, but fewer consumers are planning to buy a home—new or existing. For perspective in the same period a year ago, the Consumer Confidence Index … Continue reading “American Consumer Confidence Falls with Concerns About the Economy”

American Consumer Confidence Rises Heading into Christmas

The Conference Board said Consumer Confidence rose surprisingly in December, jumping to 108.3 (well above consensus 101.0) from an upwardly revised 101.4 (from 100.2) in November. Hope rose as prices though at extreme levels had levelled off.  Present Situation and Expectations Indexes improved driven by improved views of the economy and jobs, led by declining gas prices contributing to the lowest level for year-ahead inflation expectations since September 2021. For perspective in the same period a year ago, the Consumer … Continue reading “American Consumer Confidence Rises Heading into Christmas”

Inflation and Interest Rate Hikes Continue to Pressure American Consumer Confidence

The Conference Board said Consumer Confidence fell in November as inflation and interest rate hikes continue to pressure consumer confidence. The Conference Board’s Consumer Confidence Index fell to 100.2 in November (consensus 100.0) from a downwardly revised 102.2 (from 102.5) in October. The expectations number remains in recessionary territory below 80. For perspective in the same period a year ago, the Consumer Confidence Index stood at 111.9. Intentions to buy homes, autos, and big-ticket appliances have all cooled, according to … Continue reading “Inflation and Interest Rate Hikes Continue to Pressure American Consumer Confidence”

Target Lowers Earnings Guidance Hurt by Strapped Consumers

Retail giant Target reported worse than expected third quarter earnings premarket on Wednesday. TGT cut their profit outlook again, something they have done multiple times this year. TGT stock slumped around 15% premarket. Target will continue to heavily discount its excess inventory. Competitor Walmart reported better than expected earnings Tuesday. It appears strapped customers are heading to cheaper product at WMT. Gross and operating margins are expected to shrink further again in the quarter, as discounts and higher supply-chain costs … Continue reading “Target Lowers Earnings Guidance Hurt by Strapped Consumers”

Home Depot Reaffirms Guidance with Higher Prices Offsetting Lower Transaction Volume

Home Improvement Retailer Home Depot reported better than expected third quarter earnings before the market open Tuesday. Same-store sales rose 4.3%, ahead of estimates for 3.1%. U.S. same-store sales rose 4.5%. Home Depot said customer transactions in the third quarter fell 4.3%. Average ticket rose 8.8% to $89.67. The elevated backlogs insulated the company from the broader slowdown in the do-it-yourself market given its preference among professional contractors. Inflation is evident with cost of sales in the third quarter rising … Continue reading “Home Depot Reaffirms Guidance with Higher Prices Offsetting Lower Transaction Volume”

Walmart Raised Earnings Guidance Announcing $20 Billion Share Buyback

The world’s largest retailer Wal-Mart on Tuesday reported better than expected earnings before the bell with revenue $152.80B beating the expected $147.34B. WMT raised its year outlook on strong results for Q3 The company is gaining market share in consumer basics shoppers grapple with inflation. Heavy discounting and focus on keeping prices lower than competitors is working. Walmart also raised its full-year net sales expectations and announced a new $20 billion share buyback plan, pushing its shares up 6% in … Continue reading “Walmart Raised Earnings Guidance Announcing $20 Billion Share Buyback”

UK Shop Price Inflation Hits Record High with Food Prices Jumping 10.6%

Inflation continues to overwhelm the British economy, the British Retail Consortium index showed on Wednesday. The rise in prices charged by shops and supermarkets in the UK accelerated again in the 12 months to September, hitting its highest since records began in 2005. Prices rose by 5.7% y/y, up from 5.1% in August. The jump was fueled by an unprecedented 10.6% jump in food prices. BRC said the war in Ukraine inflated the costs of animal feed, fertilizer and vegetable … Continue reading “UK Shop Price Inflation Hits Record High with Food Prices Jumping 10.6%”

American Consumer Confidence Rises First Time in Four Months

The Conference Board said Consumer Confidence rose in August for the first increase in the index in four months to 103.2 in August (consensus 97.4) from a downwardly revised 95.3 (from 95.7) in July. Hope rose as prices though at extreme levels had levelled off while political discourse continued. For perspective in the same period a year ago, the Consumer Confidence Index stood at 115.2. The Conference Board US August Consumer Confidence The Conference Board’s Consumer Confidence Index rose to 103.2 … Continue reading “American Consumer Confidence Rises First Time in Four Months”

Walmart Revenue Rose as it Gained Market Share in Groceries and Private Labels

The world’s largest retailer Wal-Mart on Tuesday reported better than expected earnings before the bell with revenue up 8.4% to $152.86 billion. WMT is gaining market share in consumer basics shoppers grapple with inflation. Walmart is also selling through a glut of inventory leading to higher discounts which put pressure on profit margin. Operating income in the latest quarter dipped 6.8%. U.S. comparable sales, rose 6.5% in the quarter ended July 29, helped by higher prices, market-share gains in grocery … Continue reading “Walmart Revenue Rose as it Gained Market Share in Groceries and Private Labels”

Home Depot Raises Guidance as Higher Prices Offset Lower Transaction Volume

Home Improvement Retailer Home Depot reported better than expected second quarter earnings before the market open Tuesday. The average amount spent per transaction at $HD rose 9.1% during the quarter, while the total number of transactions fell 3% as it grew revenue and earnings with its position to take advantage of the upsurge in construction and renovation. The elevated backlogs insulated the company from the broader slowdown in the do-it-yourself market given its preference among professional contractors. The second quarter … Continue reading “Home Depot Raises Guidance as Higher Prices Offset Lower Transaction Volume”