These retailers are killing it in the current economy, unlike other companies that are blaming their slowing sales on inflation and the supply chain
- Lululemon reported a jump in foot traffic to stores, proving that not all retailers are getting hit as hard by an economic slowdown.
- Kohl's, Macy's, Nordstrom, and Target all reported slowing sales due to inflation and supply chain issues.
- Lululemon isn't the only retailer still showing strength amid a slowdown, though. Check out some other examples.
Lululemon reported a jump in sales and foot traffic to its stores last week, proving that not all retailers are created equal in the current economy.
Last month, Kohl's, Macy's, Nordstrom, and Target attributed slowing sales to inflation or lingering supply chain issues. However, Lululemon's chief financial officer, Meghan Frank, painted a different picture of the consumer.
"Despite the challenges around us in the macro-environment, guest traffic in our stores and on our e-commerce sites remains robust," she said in a company press release.
To be sure, Lululemon's target audience is in a relatively higher income bracket, and some brands are reporting that despite inflation, demand for luxury products is thriving. Still, not all retailers that cater to lower-income shoppers are struggling.
Here are some of the retailers that have still reported strong sales, despite the faltering economy.
Dollar General reported better-than-expected sales last month, while competitor Dollar Tree cut its full-year earnings forecast. Todd Vasos, Dollar General's CEO, said the stores have seen an uptick in consumer traffic.
Home Depot recently said there's still strong demand for home improvement projects, despite a weaker housing market. A Home Depot executive recently told reporters and investors on a call that there are positive trends in professional and DIY sales growth.
Williams-Sonoma, which also owns West Elm and Pottery Barn, reported record sales of more than $2 billion last week. "We continue to demonstrate our ability to perform by offering high-quality, differentiated, and sustainable products that our customers know and love," CEO Laura Alber said in a press release.
Dick's Sporting Goods recently boosted its earnings outlook for the rest of the year. The company's sales were up 38% in the second quarter compared to pre-pandemic in 2019. "The Dick's Sporting Goods consumer has held up quite well," said the company's CEO, Lauren Hobart, in a recent press release.
Demand for makeup doesn't seem to be slowing after Ulta reported better-than-expected results in the second quarter. "We saw healthy sales gain from members across all income demographics. Consumer engagement with beauty remains strong," said Ulta's president, Dave Kimball, about the company's second-quarter results on a call with investors and reporters.
Walmart reported better-than-expected results last month but recently noted that shoppers affected by inflation are spending less on apparel. "We're pleased to see more customers choosing Walmart during this inflationary period, and we're working hard to support them as they prioritize their spending," Walmart's CEO Doug McMillion said in a press release.