ULTA - Retail earnings review: price and trend sensitive consumers post-pandemic

Retail earnings have been incredibly scattershot in May and June, with winners and losers seeing wildly differing share reactions and revealing important insights on specific subsectors. Inventory and execution of course played a major role in determining the share trend for retailers like Macy’s (M +1.5%), Capri Holdings (CPRI +1.8%), and TJX Companies (TJX -1.9%) to the positive end and for American Eagle Outfitters (AEO +1.0%), Abercrombie & Fitch (ANF -0.7%), Burlington Stores (BURL -0.1%), Target (TGT -3.8%), and Walmart (WMT -2.1%) to the downside.  However, there were also trends in terms of both price and post-pandemic activity that were very worth noting. For example, strong numbers and share reactions from Nordstrom (JWN +1.7%), PVH Corp. (PVH -0.2%), and Deckers Brands (DECK -1.1%) on earnings indicated an appetite for consumers to dress up again. Indeed, even The Gap (GPS -0.9%), which reacted extremely poorly, offered some insight into consumer appetites

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Retail earnings review: price and trend sensitive consumers post-pandemic