HdL HeadLines calls out retail trends affecting the economy and HdL news to provide you with insight and support in your budget preparation and economic planning.
- Target Shares Sink 25% as High Costs, Inventory Woes Hit Profits
- Retail Sales Rise 0.9% in April
- Walmart Shares Fall as Higher Costs, Supply Chain Problems Eat Into Profits
- Home Depot Raises Full-Year Forecasts as Demand Stays Firm
- Amazon's E-Commerce Retails Sales Fall 3% in Q1
- HdL Announcements
Target shares dropped sharply, after the company said its quarterly profits got hit by supply chain troubles, higher fuel costs and lower than expected sales of discretionary merchandise. The big-box retailer said it saw a healthy customer, but a shift to experience-based purchases, such as toys for birthday parties and luggage for trips. Target reiterated its revenue forecast, which calls for mid single-digit growth this year and beyond.
U.S. retail sales rose 0.9% in April, a solid increase that underscores Americans’ ability to keep ramping up spending even as inflation persists at nearly a 40-year high. The increase was driven by greater sales of cars, electronics, and at restaurants, the Commerce Department said. Even adjusting for inflation, which was 0.3% on a monthly basis in April, sales increased. Gas prices fell slightly last month, restraining inflation, after soaring in March in the aftermath of Russia’s invasion of Ukraine.
Walmart reported quarterly earnings that missed Wall Street’s expectations by a wide margin, as the nation’s largest retailer felt pressure from rising fuel costs and higher levels of inventory Share of the company touched a 52-week low on Tuesday. They closed at $131.35, down 11.38%. CEO Doug McMillon said the discounter’s bottom line results “were unexpected and reflect the unusual environment,” as inflation in the U.S. is at a nearly four-decade high.
Home Depot Inc. raised its annual profit and sales forecasts, easing concerns that demand for home-improvement tools and building materials would take a hit amid surging inflation. The company's shares rose as much as 5% to $310.78 as Home Depot's first-quarter comparable sales increased, driven by higher sales of plumbing, building materials and paint, even as it flagged a late start to the spring selling season.
Amazon Chief Financial Officer Brian Olsavsky said the company now boasts “the widest selection ever” for Prime delivery, the swift, free shipping enjoyed by its paying members. Nevertheless, as consumers headed back to stores in the first months of the year, and with inflation taking a bite out of discretionary spending, the e-retailer’s product sales took a hit. While that revenue is down and growth in its retail-related services also slowed, its costs keep rising. The company’s total operating expense rose 13.2% to $112.8 billion, including a nearly 23% increase in fulfillment costs.
Click below for our latest Insights articles:
- Press Release: HdL Companies and Yiftee Partner to Engage Communities in Shop Local Campaigns
- Webinar: Local Gov’t Taxes: Budgeting, Forecasting and Future Trends with ILG
- Article: The 5 Ws of Increasing Gas Prices
HdL will be at the following upcoming events:
- MMASC Women's Leadership Summit - May 25, 2022
- MMANC Women's Leadership Summit - May 26, 2022
- GFOA - June 4-8, 2022 at Booth 411
Subscribe to receive HdL legislative and regulatory updates, economic forecasts, industry headlines and more.