US retail earnings preview: impress or depress?
Big US retail names including Home Depot, Target, and Walmart report this week. IGTV’s Angeline Ong takes a look at which retail giants are likely to have managed to pass on higher costs to consumers and those that haven’t.
(Video Transcript)
Retail earnings
In the United States, the earnings season is almost over but we do have a few big names expected to report still, starting on Tuesday.
We've got Home Depot followed by Cisco and Target on Wednesday, and on Thursday, look out for Walmart and Applied Materials as well.
Home Depot, Target, and Walmart are some of the biggest names in US tetailers, and they're reporting earnings in a very challenging period of still very high inflation and quite shaky consumption.
On the one hand, retailers are trying to pass on higher costs to their consumers and customers, and on the other hand, shoppers are looking for ways to limit spending.
Walmart
Walmart's earnings expectations will paint a picture of how tricky the situation is for retailers that are trying to balance the two. Revenue is anticipated to rise 5% to $148.5 billion, reflecting that rise in cost. But the Street expects earnings at $1.30 per share, which means a fall in profit margins.
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