Holiday Retail Sales Likely to Climb This Year: 7 Top Picks
Zacks Investment Research | Sep 17, 2021 06:28AM ET
U.S. retail sales rebounded in August after a sharp decline in July. Solid consumer spending defying the spread of the Delta variant of coronavirus has surprised many financial experts. The positive momentum is likely to continue as several market researchers have predicted strong holiday retail sales this year.
Strong Retail Sales in August /h3
The Department of Commerce reported that retail sales rebounded to the positive territory with a gain of 0.7% in August after a sharp decline in the previous month. July’s data was revised downward from a drop of 1.1% to a decline of 1.8%. The consensus estimate for August was also for a drop of 0.9%.
Core retail sales (excluding auto sales) jumped to 1.8% in August compared with the consensus estimate of a decline of 0.1%. Core retail sales in July was revised downward to a drop of 1% from a fall of 0.4% reported earlier.
Despite the growing threat of the Delta variant, in absolute term, retail sales climbed 15.1% year over year in August. Online sales surged 5.3% last month. Restaurants and bars suffered the most due to the resurgence of the COVID-19 infection as their sales remained flat month over month. Yet, year over year, sales in restaurants and bars soared 31.9%.
Impressive Projections for Holiday Sales 2021/h3
On Sep 14, RH operates as a retailer in home furnishings. It offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, tableware, and child and teen furnishings.
The accelerated demand for home furniture and furnishing products is primarily attributable to the robust momentum in the housing market. The company has been exhibiting strong profitability, buoyed by its focus on improving profit margins and creating a new and differentiating shopping experience with the addition of hospitality (restaurants as well as cafes) in new galleries.
The company has an expected earnings growth rate of 45.3% for the current year (ending January 2022). The Zacks Consensus Estimate for its current-year earnings has improved 10.6% over the last 7 days.
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