Black Friday is next week. This week, some of the biggest U.S. retailers will report how they stand heading into the year’s busiest shopping weekend.
Third-quarter earnings season is winding to a close, with 92% of companies listed in the S&P 500 having already reported results. All that remains, really, is a handful of some of America’s largest retailers. How they performed last quarter could offer a bit of insight into what we can expect in the current quarter.
Thanks to the holidays, the fourth quarter is always big business for U.S. retailers. And that all starts with Black Friday.
Last year, Americans spent a record $59.1 billion on Black Friday – up 13% from the previous year. With the U.S. economy improving and the employment rate at a five-year low, expect another record spending spree this year.
Whether that has much of an impact on the market is another question. Stocks are already at all-time highs, with the Dow topping 16,000 earlier today. Even with blowout sales, there may not be a whole lot of wiggle room for stocks continue their upward trajectory.
How retail stocks respond to this week’s round of earnings could be a telltale sign of what to expect after the Black Friday numbers are in.
Here is a sampling of which retailers are reporting earnings this week:
- Best Buy (NYSE: BBY)
- Green Mountain Coffee Roasters (NYSE: GMCR)
- J.C. Penney (NYSE: JCP)
- L Brands (NYSE: LTD)
- Staples (NASDAQ: SPLS)
- Williams-Sonoma (NYSE: WSM)
- Abercrombie & Fitch (NYSE: ANF)
- Gap (NYSE: GPS)
- Sears Holdings (NYSE: SHLD)
- Target (NYSE: TGT)