Retail

Nordstrom 2Q23: Net Sales Down -8.3% Y/Y

Nordstrom 2Q23: Net Sales Down -8.3% Y/Y

Nordstrom’s credit card revenues were up +10% y/y during 1H23 with lower-than-expected credit card losses. However, delinquencies are rising gradually & are now above pre-covid levels, suggesting higher credit losses during 2H23 & into 2024 (although credit losses aren’t projected to be anywhere near where they were during the 2009 financial crisis).

read more
Lowe’s 2Q23: Comp Outlook for 2023 Down -2% to -4%

Lowe’s 2Q23: Comp Outlook for 2023 Down -2% to -4%

The 2 strongest sales drivers for Lowe’s: real disposable personal income; and home price appreciation. While rural disposable income has been pressured by inflation & elevated interest rates, growth in real disposable income started to improve during 2Q23 with growing wages surpassing inflation for the first time in 2 years. Home price appreciation has slowed (but is still up +35% vs. pre-covid).

read more
Target 2Q23: Comps -5.4% & Traffic -4.8% Y/Y

Target 2Q23: Comps -5.4% & Traffic -4.8% Y/Y

Target reported solid GDP & employment, moderating inflation, and overall resilient consumer spending. However, further pressure on an already strained consumer is represented by: the upcoming resumption of student loan payments; and a rollback in stimulus payments & enhanced child-care tax credits. A 2Q sales miss reflected management’s political miscue.

read more
Checking on Retail Sales & The E-Commerce Mix

Checking on Retail Sales & The E-Commerce Mix

Aggregate advanced retail sales (including e-commerce) growth flatlined during 2Q23 & while government data for e-commerce sales performance by itself is unavailable during this period, Amazon’s performance during its recently released 2Q23 report looks solid.

read more
Lowe’s July 2023 Special Call

Lowe’s July 2023 Special Call

While management reports a cautious approach to consumer discretionary spending on large ticket items, the main drivers of home improvement spend (housing turnover, home price appreciation, the age of housing stock & personal disposable income) are pointed in the right direction.

read more
Actionable Intelligence Report Thumbnail