Earnings

4 Retails Stocks Likely to Top Estimates This Earnings Season

Though the earnings season has reached its tail end, the main chunk of releases from the Retail-Wholesale sector is yet to come. This time the season has been quite different for retailers. The space has been hit hard by the coronavirus-induced stay-at-home orders, social distancing and some mandatory store closures. As a result, U.S. retail sales witnessed a record decline for the second consecutive month in April. Per the Commerce Department retail sales in April fell 16.4%, following a decline of 8.3% in March.

Per the latest Zacks Earnings Preview report, the sector is anticipated to witness top-line growth of 5% this earnings season, down from an improvement of 7.2% in the last reporting cycle. Again, the bottom line is expected to plunge 21%, following an increase of one percentage point in the preceding season.

Here’s How the Quarter Shaped Up

The quarter that commenced on an upbeat note took

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5 Retailers Likely to Gain on Earnings Results This Month

A bulk of the retail sector is gearing up to report first-quarter earnings and a handful of companies from this space are set to beat earnings estimates this month. This raises optimism in an otherwise coronavirus-stricken reporting cycle.

Retail Sector Suffers Due to Pandemic

On Apr 15, the Commerce Department stated that U.S. retail and food services sales in March fell 8.7% to $483.1 billion, following a revised reading of a 0.4% decline in February. However, on May 15, the Commerce Department revised March retail sales to a decline of 8.3%. The unprecedented fall in March retail sales marked the largest monthly decline since the economic recession in November 2008.

The coronavirus pandemic has brought economic activities to a standstill leading to skyrocketing job losses and massive pay cuts. Consequently, this has resulted in sinking consumer confidence and dwindling household income, which have severely impacted spending activities and taken a

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