[Music] US retail sales fell nearly a full percentage point in May, more than the 610 of a percent that was expected. Does that suggest US consumers are tapped out or an expected outcome after tariff fears drove panic spending. Joining me now, we've got Deborah Wineswig, who is the Corsite Research founder and CEO.Still with me here as well, we've got Peter Chair of Academy Securities. Deborah, good to see you back here with us this morning. First, just want to get your read in on the retail sales data that ...

The results of the CNBC NRF retail monitor for May just released. Let's get to Steve Leeman. He has more on this.Hi, Steve. Hey, Becky. Consumer spending growth slowed in May.Apparent payback from strong April outlays that were propelled by consumers pulling forward purchases ahead of tariffs. And consumers of course could now face new challenges after developments overnight in the Middle East. Uh the CNBC NRF retail monitor.It's powered by real credit card spending data from Affinity Solutions showed a 0.5 ...

Core Viewpoint - Lululemon's shares dropped approximately 20% following a less optimistic earnings report, primarily due to increased costs from tariffs impacting earnings expectations for the year [1][3]. Financial Performance - Lululemon's revenue increased by 7%, but net income fell from $321 million to $314 million year-over-year in fiscal 2025's first quarter [6]. - Earnings per share (EPS) guidance for the year was reduced to a range of $14.58 to $14.78, down from $14.95 to $15.15 [3]. Impact of Tariffs - The weaker outlook is largely attributed to tariffs imposed by the Trump administration, particularly affecting Lululemon's production in Vietnam, where 40% of its manufacturing occurs [4]. - The tariff rate on imports from Vietnam is set at 46%, which is expected to increase production costs for Lululemon [4][7]. Market Conditions - The company faces challenges from rising production costs due to tariffs and potential dampening of sales from premium pricing, especially in a market with weak consumer spending growth [7]. - Comp sales increased only 1%, falling short of Wall Street's expectations of a 3% increase [6]. Valuation - Following the stock's decline, Lululemon's price-to-earnings (P/E) ratio has dropped to around 17, compared to its historical average of 42 [9]. - The stock is currently trading at approximately 18 times forward earnings based on the low end of the new guidance for 2025 [9]. Competitive Landscape - Lululemon operates in a highly competitive apparel market, contending for market share against brands like Nike and Gap [10]. - Price sensitivity is a critical factor in maintaining competitiveness within the industry [10].

Welcome to a new episode of the opening bid podcast. I'm Yahoo Finance executive editor Brian Sazi. Like I always say, this is a podcast will make you a smarter investor, period.And you're going to get smarter on all things uh economy here at this very pivotal moment for the US economy. Joining me now is Visa chief economist Wayne Best. Wayne, good to see you.It's been a while. Last time I saw you in our Yahoo headquarters in New York City, it came with a bunch of charts and tables. So, um, welcome back.App ...

We're going to invest roughly $30 billion in the United States to expand Orlando and California. This park is the most technologically advanced thing we've ever done, and we've done some pretty advanced things in our time. Walt Disney World and Universal Orlando Resort, two of the biggest names in theme parks, are about to get even bigger.We've got a lion's share of that investment coming to us. At Walt Disney World. Plans are already in the works, with expansions and facelifts being rolled out across sever ...

May 30, 2025 01:48 PM GMT US Economics | North America Slowing inflation, spending holding up Core PCE was slightly lower than expected in April, showing a clear downward trend before the tariff impulse. Real spending was slightly stronger than expected, though Q1 spending was revised down. Income growth was strong due to one-time payments. The trade deficit narrowed as imports fell sharply. | M Slowing inflation, spending | Chief US Economist Michael.Gapen@morganstanley.com | +1 212 761-0571 | | --- | --- ...

Financial Data and Key Metrics Changes - Total sales grew by 6% compared to 11% growth last year, while comp sales were flat after 2% growth last year, both metrics at the midpoint of guidance [7][10] - EBIT margin increased by 30 basis points, and adjusted EPS was up 18% over last year despite flat comp sales [8][28] - Gross margin rate for Q1 was 43.8%, an increase of 30 basis points versus last year, driven by a 20 basis point increase in merchandise margin and a 10 basis point decrease in freight expense [26] Business Line Data and Key Metrics Changes - Comp store sales were flat, with a notable deceleration from Q4 to Q1, affecting all demographic trade areas [17][68] - The beauty business was the best performing category in Q1, while overall performance across categories was fairly broad based [97] Market Data and Key Metrics Changes - Comparable store inventories were down 8% versus the end of Q1 2024, with reserve inventory up 31% compared to last year, reflecting strategic acquisitions to mitigate tariff impacts [28][76] - The Southeast Region outperformed the chain, while the Midwest Region trailed due to unfavorable weather [95] Company Strategy and Development Direction - The company is focused on its "Burlington Two Point O" strategy, emphasizing merchandising capabilities and store experience improvements [21][105] - Plans to open 100 net new stores in 2025, with a significant portion expected to open in the latter half of the year [23][115] - The company is actively managing tariff impacts by seeking margin and expense savings opportunities [9][54] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about external uncertainties, particularly regarding tariffs and the state of the consumer, which could impact sales trends [10][36] - The company has a playbook to manage through economic slowdowns and inflation, focusing on providing value to customers [19][84] - Management remains optimistic about long-term growth potential despite short-term challenges [20][88] Other Important Information - The company ended Q1 with approximately $1.1 billion in total liquidity, including $371 million in cash [29] - A new two-year $500 million share repurchase authorization was approved by the Board of Directors [30] Q&A Session Summary Question: Impact of tariffs on off-price retail - Management indicated that disruption from tariffs could create both risks and opportunities for off-price retailers, with recent tariff reductions potentially leading to attractive buying opportunities [40][46] Question: Monthly comp sales trend in Q1 - Comp sales were down about 2% in February, improved in March and April, with May month-to-date trends similar to the March-April combined period [58][61] Question: Comp performance by demographic - Lower income trade areas outperformed the chain, and Hispanic consumer trends showed relative strength, although border stores underperformed [70][72] Question: Freight costs and guidance - Guidance is contingent on holding ocean freight costs to contracted rates, with secured truck and intermodal capacity at favorable rates [89][91] Question: Marketing programs update - The marketing strategy has evolved to focus on value, with an integrated approach to enhance customer experience and store layout [102][105]

Core Insights - Cato Corporation's shares have increased by 11.5% following the release of its earnings results, significantly outperforming the S&P 500 index's 1.4% growth during the same period [1] - Despite a year-over-year earnings decline, Cato's shares are up 12% over the past month, compared to the S&P 500's 6.5% rise, indicating renewed investor optimism [1] Financial Performance - Cato reported a first-quarter 2025 net income of $3.3 million, or 17 cents per share, a decline of approximately 69% from $11 million, or 54 cents per share, in the same period last year [2][3] - Total revenues decreased by 3.9% to $170.2 million from $177.1 million a year ago, with retail sales making up the majority at $168.4 million; same-store sales remained flat [2] Operating Metrics - Gross margin slightly declined to 35.1% of sales from 35.8% in the prior year quarter, attributed to lower merchandise contribution due to increased markdowns [4] - Selling, General and Administrative (SG&A) expenses decreased by 2.5% year over year to $55.3 million, but as a percentage of sales, SG&A rose to 32.8% from 32.4% [4] Cost Structure - Depreciation costs increased to $2.6 million from $2 million, while interest and other income fell significantly to $1.2 million from $5.8 million, impacted by a prior year's gain from land sales [5] - Income before taxes declined by 63.5% year over year to $4.2 million, with income tax expense rising to $0.9 million from $0.6 million due to changes in tax rates [5] Management Commentary - Cato's leadership highlighted the cautious consumer spending environment, with CEO John Cato noting general economic uncertainty and potential tariff impacts as contributing factors to a restrained outlook [6] - Although sales trends improved later in the quarter, the management maintained a measured tone regarding recovery projections for the remainder of the year [6] Strategic Actions - During the quarter, Cato did not open any new locations and permanently closed eight stores, reducing its total store count to 1,109 from 1,171 a year ago [7] - This contraction reflects the company's adaptation to changing consumer behaviors and efforts to optimize its physical footprint [7] Capital Management - Cato repurchased 294,036 shares during the quarter, indicating confidence in its valuation and commitment to returning capital to shareholders [8] - The company's financial position remained stable, with cash and cash equivalents increasing to $31.3 million from $20.3 million, while short-term investments decreased to $48.6 million from $57.4 million [8]

Core Viewpoint - Macy's Inc. has revised its annual outlook due to initial and current tariffs, moderation in consumer discretionary spending, and increased competition, leading to a decrease in expected adjusted earnings per share for fiscal 2025 [1] Financial Performance - The company reported net sales of $4.6 billion for Q1 2025, a decline of 5.1% year over year, but exceeded the consensus estimate of $4.50 billion [3] - Comparable sales decreased by 2.0% on an owned basis and 1.2% on an owned-plus-licensed-plus-marketplace basis [3] - Adjusted earnings were reported at 16 cents per share, surpassing the consensus of 14 cents [4] - Core adjusted EBITDA was $308 million, down from $363 million a year ago [4] Future Guidance - For fiscal 2025, Macy's has lowered its adjusted earnings per share guidance from $2.05-$2.25 to $1.60-$2.00, compared to the consensus of $1.93 [1] - The company maintained its sales guidance for 2025 at $21 billion-$21.4 billion, slightly below the consensus of $21.31 billion [1] - For Q2 2025, Macy's forecasts sales between $4.65 billion and $4.75 billion and adjusted earnings of 15 to 20 cents per share, compared to the consensus of $4.76 billion and 34 cents, respectively [5] Margin and Sales Trends - The gross margin remained flat at 39.2%, with improved merchandise margin offset by higher delivery expenses as a percentage of net sales [4] - Comparable sales for the go-forward business were down 1.8% on an owned basis and 0.9% on an owned-plus-licensed-plus-marketplace basis [4] - Bloomingdale's and Bluemercury reported positive sales growth, with Bloomingdale's net sales up 2.6% and Bluemercury's up 0.8% [6]

Core Insights - Walmart announced plans to raise prices due to tariffs, indicating potential inflation concerns across the retail sector [2][8] - The market is currently seeking clarity on tariffs, with mixed stock performance reflecting cautious optimism [5][8] - Upcoming retail earnings reports may provide insights into changing consumer spending habits [6][8] Group 1: Walmart and Tariffs - Walmart's decision to raise prices affects over two-thirds of its products, which are domestically sourced, suggesting a muted impact from tariffs [2] - The company anticipates that the increase in costs will lead to higher prices for consumers, raising concerns about a domino effect among other retailers [2] Group 2: Market Reactions and Economic Indicators - The S&P 500 closed up 0.4%, while the Nasdaq Composite fell by 0.2%, indicating mixed market reactions [1] - The U.S. imported nearly $1 trillion worth of goods from Canada and Mexico in 2024, with new tariffs expected to increase consumer costs by approximately $750 annually for these goods [4] Group 3: Retail Sector Outlook - Retailers such as Home Depot, Lowe's, Target, TJ Maxx, and Ralph Lauren are set to report earnings, which will shed light on consumer spending trends [6] - The weak start to the housing season may influence spending patterns, with consumers potentially opting to renovate existing homes rather than making new purchases [6] Group 4: Corporate Developments - Applied Materials shares dropped by 5% following mixed results and guidance impacted by tariffs, highlighting the uncertainty in the market [7] - Charter Communications is acquiring Cox Communications for $34.5 billion, reflecting ongoing consolidation in the telecommunications sector [7]