Retail Stocks Surge Ahead of Earnings Reports
As the holiday shopping season kicks off, retail stocks are experiencing a significant boost. Following a busy Black Friday, several retailers saw their stocks rally, with some even breaking out above buy points.
Strong Sales Figures
Mastercard’s SpendingPulse reported a 3.4% increase in retail sales compared to last year, with online sales surging 14.6%. In-store sales also saw a modest 0.7% increase. Jewelry, electronics, and apparel remain the top gift sectors for the holidays, with e-commerce apparel shopping being a particular standout.
Consumers in the Gift-Giving Spirit
According to Michelle Meyer, chief economist at the Mastercard Economics Institute, “Black Friday was a good indicator of how the holiday season is positively shaping up. Consumers are comfortably in the gift-giving spirit as price reductions and deals occur across sectors, supporting budgets for holiday shopping.”
Strategic Shopping
Steve Sadove, senior advisor for Mastercard, noted that shoppers are being more intentional with their spending, prioritizing promotions that offer the greatest value. This strategic approach is driving sales and benefiting retailers.
Retail Winners
Several retailers saw significant gains on Monday, including:
- Burlington Stores (BURL), which rose 3% to trade near the top of a buy range, above a 279.51 buy point.
- Williams-Sonoma (WSM), which surged 3.1% higher to climb into a buy zone, above a 174.25 buy point.
- Dick’s Sporting Goods (DKS), which popped 3.9% with a strong bounce off its 200-day moving average.
- Deckers (DECK), which climbed 3%, extending further from its recent cup-with-handle breakout.
- Macy’s (M), which surged 4.3%, paring some of its 16% decline in 2024.
- Five Below, which jumped 7% ahead of its Q3 earnings report.
- Lululemon (LULU), which rose about 4.3% with a strong move off its 200-day line.
These retailers are poised for a strong holiday season, driven by consumer demand and strategic shopping habits.
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