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