Retail sales were up 3.0% in January to top the consensus expectation of analysts as consumers showed strength in the face of inflation and macro pressures.
The auto categories were strong during the month with a 5.9% month-over-month jump and 2.8% year-over-year gain. Those numbers bode well for Lithia Motors ( LAD ), AutoNation ( AN ), Group 1 Automotive ( GPI ), and CarMax ( KMX ).
Furniture and home furnishings spending was also a surprise with a 4.4% month-over-month increase and 3.8% year-over-year rise. There has been some caution that Lovesac ( LOVE ), La-Z-Boy ( LZB ), Williams-Sonoma ( WSM ), and Ethan Allen Interiors ( ETD ) would have a rough Q1.
Restaurant spending was up 7.2% month-over-month and was 25.2% higher year-over-year. Chains like Portillo's ( PTLO ), Red Robin Gourmet ( RRGB ), Wingstop ( WING ), Dutch Bros. ( BROS ), Chipotle ( CMG ), Shake Shack ( SHAK ) and Potbelly ( PBPB ) have been seeing a strong start to the year.
Grocery spending was only up 0.1% from the prior month, but was still 6.6% higher than last year with elevated pricing a boost. Kroger ( KR ) and Albertsons ( ACI ) have seen a drop in share price this year with investors becoming less defensive in general.
The biggest pullback in January may have been with e-commerce spending. The nonstore retailers category only saw a 3.0% year-over-year increase to run well below the overall 6.4% retail sales year-over-year increase. The category includes Amazon ( AMZN ), eBay ( EBAY ), Wayfair ( W ), and Etsy ( ETSY ).
The big beasts of retail were relatively flat in premarket action on Wednesday. Walmart ( WMT ) was up 0.05% , Target ( TGT ) fell 0.16% , and Costco ( COST ) was off 0.25% .
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Retail sales come in hot - see the standouts and disappointments