Kiplinger.com shares that the latest batch of retail earnings point to a resilient consumer in these high-inflation times, analysts say.
In the latest Kiplinger article, TradeZings market advisor Wes Gottesman sheds light on how these big retailers such as Walmart (WMT) and Target (TGT) are looking to bounce back strong after a rocky couple of quarters.
“During these inflationary times, conscientious consumers have looked to Walmart for its lower prices on essential goods, especially when the company has made past efforts to increase the quality of food. In regard to inventory and the outlook for the anticipated holiday season, we feel that Walmart is poised for success.”Wes Gottesman, market advisor at Web3 trading platform TradeZing
Gottesman feels the same about fellow big-box retailer Target (TGT), even though the company this morning said its second-quarter profit was down almost 90% from the year-ago period. The plunge occurred as Target slashed prices on excess inventory.
“The decision to dispose of unwanted inventory, although initially shocking to its profits, may prove necessary in the future as we approach the major holidays,” Gottesman says. “Target is a hub for decorations and other holiday essentials for Halloween, Thanksgiving, Hanukkah, Christmas and New Year’s Eve. In order to meet the inventory demand for the upcoming seasons, they had to relinquish the unwanted. This move was for the future success and profitability of Target.”
To learn more about how consumers are impacting retail earnings, check out the full Kiplinger article by Karee Venema here!