More retailers squeeze in earnings reports before Black Friday with holidays and tariffs in focus

 Earnings Watch: Macy's and Nordstrom among the retail names reporting. Results are also due from Crowdstrike.

With Black Friday and the holiday shopping sprint just days away, quarterly results from retailers like Macy's Inc. and Nordstrom Inc. this week will help set the tone for the rest of the season, as inflation-squeezed shoppers continue to zero in on discounts.

Those results will follow remarks from executives at Gap Inc. (GAP), who said holiday-season trends so far were solid, as it draws wealthier customers looking for deals and embarks on a campaign to refresh its stores. The National Retail Federation forecast U.S. holiday-season spending to hit another record this year.

However, that same industry group also forecast slower sales growth over that period, and said consumer behavior could start to return to pre-pandemic norms. Target Corp. (TGT) offered a downcast outlook, and said customers were still hesitant to spend. And Ross Stores Inc. (ROST) said its lower-income shoppers, who have felt inflation's pains more acutely, continued to struggle.

Other chains reporting this week include Urban Outfitters Inc., Abercrombie & Fitch Co. (ANF), Best Buy Co. (BBY), Burlington Stores Inc. (BURL), Dick's Sporting Goods Inc. (DKS), Kohl's Corp. (KSS) and Bath & Body Works Inc. (BBWI).

The past two-plus of price increases - for things like groceries and housing - have kept people from buying clothing, furniture and electronics. The prospect of a tougher tariff regime under President-elect Trump, economists say, could keep prices elevated. This week's earnings calls could offer more detail on how retailers might respond those policy changes, potentially by shifting production out of China to other nations, as some have already done or say they're able to do.

Individual efforts by each store chain to rejuvenate demand and - for some aging brands - cultural cachet, could become more of a focus for Wall Street.

Macy's, for instance, is testing new ideas in stores based on shopper feedback. Urban Outfitters (URBN), in its struggling namesake stores, is trying to be a little bit less indie. Gap is revamping marketing for its own namesake stores, and trying to draw more families to Old Navy and wealthier shoppers to Banana Republic.

This week in earnings

Nine S&P 500 companies report this week, according to FactSet.

Outside of bigger retail chains, Zoom Video Communications Inc. (ZM) reports results this week. We'll also get results from Autodesk Inc. (ADSK), Dell Technologies Inc. (DELL), Workday Inc. (WDAY) and HP Inc. (HPQ)

The calls to put on your calendar

Department stores: Macy's (M), Kohl's (KSS) and Nordstrom (JWN) report on Tuesday. Executives at those chains have stayed cautious on the road ahead. But along with the big picture on the holiday season, the chains' earnings calls could offer more clues on what smaller efforts - and individual brands - are resonating with shoppers.

The number to watch

CrowdStrike results: After a flawed software update from cybersecurity firm CrowdStrike Holdings Inc. (CRWD) in July caused a widespread technology outage, HSBC analyst Stephen Bersey a month later said "the bad news is behind us." When the company reports quarterly results on Tuesday, we'll see about that. The company is fighting with Delta Air Lines Inc. (DAL) in court over the blackout, which disrupted flights and left people using Windows locked out of their computers. But CrowdStrike's stock has rebounded since the incident, and is up more than 40% so far this year. And Bersey said the company still had "exposure to some of the fastest-growing markets in the security industry," with bigger advantages in artificial intelligence.

https://www.morningstar.com/news/marketwatch/20241124163/more-retailers-squeeze-in-earnings-reports-before-black-friday-with-holidays-and-tariffs-in-focus