Earnings season is heating up as we get into May. We've heard from plenty of consumer facing names so far (Hasbro, McDonald's, Chipotle) but by time honored tradition the earnings season for retail doesn't start until Walmart reports which won't happen until next Thursday.
It makes sense if you think about it. Walmart is the biggest retailer on earth. They set the standard and the context for all the other retailers. If Walmart reports positive comps and says it sees no problem with scarcity next week that raises the bar for Target. Home Depot reports before Lowe's for the same reason. There's no official law forcing the order. It's just what makes sense.
Once the big box stores are done reporting the floodgates open. Foot Locker, Best Buy, Kohl's, Gap, Ulta will all be on the record by the end of the month. While the economists argue over the long term implications of trade policy the retailers will be telling us what's actually happening in the real world.
I find it much more lucrative to focus on what Walmart is saying consumers are doing than what economists think should be happening.
I'm grading the names that matter and giving select earnings previews for members.
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