Retailers lower outlooks with discretionary spending under pressure
Discretionary apparel retailers proffered less-than-sunny earnings vistas this week, with Macy’s, Nordstrom, T.J. Maxx parent TJX, Victoria’s Secret and Abercrombie & Fitch all lowering their outlooks. Gap completely withdrew its second-half forecast on falling sales, while Urban Outfitters missed estimates.Why it matters: After a resurgence in 2021 — when the apparel industry saw one of…
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Dollar stores are benefitting from shoppers trading down
This week’s dollar store chain earnings show that even higher earning households are taking advantage of dollar store price points. Both Dollar General and Dollar Tree reported increased in-store sales this week, citing customers trading down to lower-priced items this summer. Dollar General reported a 9% increase in sales year-over-year, with same-store sales jumping by…
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Zoom is struggling to convince consumers to pay, and the stock is sliding
Zoom Video Communications Inc. is struggling to convince people to pay for its videoconferencing service in the third year of the COVID-19 pandemic, contributing to a trimmed forecast and falling stock price Monday. Zoom ZM, -0.97% executives reduced their earnings and revenue guidance for the fiscal year Monday afternoon, and Zoom Chief Financial Officer Kelly…
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Even off-price retailer TJX is being impacted by inflation
Despite offering deep discounts, off-price retailers like TJX aren’t immune to the slowdown in consumer spending. During the second quarter of fiscal year 2023, TJX saw comp store sales drop by 5%. The company — which operates off-price retailers TJ Maxx, Marshalls and HomeGoods — had a drop in categories such as home decor and,…
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Target profit crumbles as inflation-weary consumers shun discretionary spending
Target Corp (TGT.N) reported a bigger-than-expected 90% fall in quarterly earnings on Wednesday and missed estimates for comparable sales as it struggled to lure inflation-hit shoppers with steep discounts on apparel, electronics and home goods. A host of U.S. retailers have issued profit warnings in recent weeks as consumers squeezed by higher prices for everything…
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Clothing subscriptions like Stitch Fix were once hot – but now might be the victims of ‘box fatigue’
After earning a master’s degree a decade ago, David Hill wanted to amp up his personal style and signed up for the Trunk Club, which promised to mail him boxes of clothing tailored to his tastes as often as he liked. Hill would visit the company’s Chicago showroom to meet with a stylist and pick…
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