As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer retail industry, including Walgreens (NASDAQ: WBA) and its peers.
Consumer retail companies operate the brick-and-mortar stores where consumers have shopped for centuries. The way people shop is changing with increased penetration of technology, but these retailers are adapting and still very much a part of the consumer fabric.
The 58 consumer retail stocks we track reported a satisfactory Q2. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 0.9% below.
In light of this news, share prices of the companies have held steady as they are up 4.5% on average since the latest earnings results.
Walgreens (NASDAQ: WBA)
Primarily offering prescription medicine, health, and beauty products, Walgreens Boots Alliance (NASDAQ: WBA) is a pharmacy chain formed through the 2014 major merger of American company Walgreens and European company Alliance Boots.
Walgreens reported revenues of $38.99 billion, up 7.2% year on year. This print exceeded analysts’ expectations by 6.2%. Despite the top-line beat, it was still a mixed quarter for the company with a beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
Interestingly, the stock is up 6.4% since reporting and currently trades at $12.04.
Is now the time to buy Walgreens? Access our full analysis of the earnings results here, it’s free.
Best Q2: American Eagle (NYSE: AEO)
With a heavy focus on denim, American Eagle Outfitters (NYSE: AEO) is a specialty retailer offering an assortment of apparel and accessories to young adults.
American Eagle reported revenues of $1.28 billion, flat year on year, outperforming analysts’ expectations by 4%. The business had an incredible quarter with a beat of analysts’ EPS and gross margin estimates.
The market seems happy with the results as the stock is up 39% since reporting. It currently trades at $18.96.
Is now the time to buy American Eagle? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: America's Car-Mart (NASDAQ: CRMT)
With a strong presence in the Southern and Central US, America’s Car-Mart (NASDAQ: CRMT) sells used cars to budget-conscious consumers.
America's Car-Mart reported revenues of $341.3 million, down 1.5% year on year, falling short of analysts’ expectations by 5%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
As expected, the stock is down 18% since the results and currently trades at $36.50.
Read our full analysis of America's Car-Mart’s results here.
Macy's (NYSE: M)
With a storied history that began with its 1858 founding, Macy’s (NYSE: M) is a department store chain that sells clothing, cosmetics, accessories, and home goods.
Macy's reported revenues of $5.00 billion, down 1.9% year on year. This print topped analysts’ expectations by 2.7%. Overall, it was an exceptional quarter as it also put up a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 27.2% since reporting and currently trades at $17.18.
Read our full, actionable report on Macy's here, it’s free.
BJ's (NYSE: BJ)
Appealing to the budget-conscious individual shopping for a household, BJ’s Wholesale Club (NYSE: BJ) is a membership-only retail chain that sells groceries, appliances, electronics, and household items, often in bulk quantities.
BJ's reported revenues of $5.38 billion, up 3.4% year on year. This result came in 1.9% below analysts' expectations. Overall, it was a slower quarter as it also logged full-year EPS guidance slightly missing analysts’ expectations and a slight miss of analysts’ EBITDA estimates.
The stock is down 9.6% since reporting and currently trades at $96.06.
Read our full, actionable report on BJ's here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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