Key research highlights from NoBull’s recently released 3Q23 Retail Financial Benchmarking Report & 4Q23 Stock Performance Dashboard.
- Despite consumer headwinds in the form of elevated prices & high interest rates, consumer-facing retail companies performed well during 3Q23 as these chains were largely able to continue passing along their higher retail prices to consumers who remain largely employed even as input costs were declining.
- In general, these retail companies were bailed out by higher-income consumers who in many cases traded down into the mainstream retail brands – helping to offset weakness from the lower-income demo that focused their stressed spending power on necessities.
- Notably, big ticket items (like appliances & car purchases) were soft while affordable luxuries (like Starbucks coffee) did relatively well during the quarter.
- 2023 has been a strong rebound year for consumer retail stocks with a notable post-covid divergence as consumers ditched all things vaxx & pharmacy-related as they happily headed out for far-away travel destinations, making up for all those years of misery…