See It Market: Retail Earnings Get Back on Track Following Geopolitical Sell-off

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Key Takeaways: 

  • Home Depot, Macy’s and Lowe’s all beat expectations last week, while ecommerce still lags with disappointing results from Wayfair and eBay
  • Not many S&P 500 companies are mentioning the Russia-Ukraine Conflict at this point, expect more comments next quarter as it could exacerbate record high inflation
  • Despite headwinds, consumer spending still looks healthy
  • Potential surprises this week: Hormel Foods,
  • Q4 peak earnings season is over, last few names trickle in over the coming weeks

Despite impressive results from a number of retailers last week, many of those names initially got caught up in the geopolitical sell-off as Russia’s invasion of Ukraine consumed investors, only to close higher by the end of the week. Home Depot, Macy’s, Lowe’s put up better than expected results, while TJ Maxx and Wayfair missed analyst expectations, and eBay guided lower for the year.