The U.S. first-quarter earnings season is mostly winding down, but the retail sector is just revving up.
Coming days bring results from big U.S. retailers including Walmart, Home Depot, Lowe’s, Target, Kohl’s and Best Buy. Their figures will show whether Americans, locked down by coronavirus, are still spending money.
With more than 35 million U.S. jobs lost since mid-March, the outlook isn’t rosy for the consumer discretionary sector — it is expected to post a 45% drop in Q1 earnings. Consumer staples on the other hand should see a 5.2% increase, according to IBES data from Refinitiv.
The retailers are reporting in the shadow of online shopping giant Amazon, which is among the “stay-at-home” stocks benefiting from the lockdown. Its shares have soared some 28% this year.