Food sales are hot, but some other merchandise, “particularly apparel,” requires markdowns to get moving.
But inflation is eating everyone’s lunch.
It’s still supply-chain chaos for retailers, but different retailers face different kinds of chaos.
Spent $20 billion more at gas stations, from a year ago, due to spiking prices; came out of hide of other retailers. Inflation eats everyone’s lunch.
Not a revenue-shocker (they were up even from stimulus-miracle a year ago), but a cost-shocker. Unable to pass on all the cost increases, their margins got squeezed.
Retail Therapy at Bars & Restaurants, Cannabis Stores, and Ecommerce? Other retailers not so lucky.
On crappy earnings and lowered guidance, many of these highflyer stocks kathoomphed -70% to -85% from highs last year.
It’s rough out there in multiple ways.
Great news, but not for the stock. Share buybacks gutted Starbucks. The SEC should again rule them illegal market manipulation, as it had until 1982.
Retail sales amid record worst inflation in durable goods and red-hot inflation in nondurable goods.