Is the US Consumer Getting Stretched? Earnings Will Offer Fresh Clues

3 months ago

Key Takeaways

Consumers are stretched, choosing basal spending complete discretionary items, Helen of Troy executives said Tuesday.
“The macro situation and nan wellness of consumers and retailers has worsened,” Helen of Troy CEO Noel Geoffroy said connected a convention call.
The news comes up of different high-profile net reports group for merchandise this week, including announcements from PepsiCo, Conagra, and Delta Air Lines.

Consumers are stretched, choosing basal spending complete discretionary items, Helen of Troy (HELE) executives said Tuesday successful an parameter that different consumer-focused companies whitethorn study their ain pressures this net season.

“The macro situation and nan wellness of consumers and retailers has worsened,” said Chief Executive Officer (CEO) Noel Geoffroy connected an net convention telephone pinch Wall Street analysts Tuesday. “Consumers are moreover much financially stretched and are moreover further prioritizing essentials complete discretionary items.”

The news comes up of different high-profile net reports group for merchandise this week, including announcements from PepsiCo (PEP), ConAgra (CAG), and Delta Air Lines (DAL), that should connection further views into really consumer spending is holding up. U.S. unit income maturation for May came successful somewhat below economists’ expectations.

Helen of Troy Shares Plunge After Earnings

Shares of Helen of Troy, known for nan OXO, Revlon, Vicks, and Osprey brands, among others, were precocious down almost 28%. The institution earlier Tuesday missed nan Street’s estimates for its fiscal first-quarter profit and revenue and trim its outlook, a study that offered early imaginable clues regarding nan wellness of nan U.S. user arsenic nan latest net play unfolds.

Executives cited an “unexpected” slowdown successful its outdoor category, hitting income of packs and accessories; unit connected nan beauty category, particularly beauty devices nether $100; and a downtrend successful immoderate discretionary family items, including barren nutrient storage, according to a transcript of nan convention telephone provided by AlphaSense.

Shares of beauty products shaper Estee Lauder (EL) were precocious disconnected 2%. The company, which is scheduled to study its adjacent group of quarterly results connected Aug. 19, successful May lowered its net guidance, citing macroeconomic pressures.

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