Q2 2020 Retail Scorecard – Update August 21, 2020

Seventy-nine percent of companies in our Retail/Restaurant Index have reported Q2 2020 EPS. Of the 163 companies in the index that have reported earnings to date, 79% have reported earnings above analyst expectations, and 21% reported earnings below analyst expectations. The Q2 2020 blended earnings growth estimate is -46.9%.

The Q2 2020 blended revenue growth estimate is -3.9%. Seventy-four percent have reported revenue above analyst expectations, and 26% reported revenue below analyst expectations.

Exhibit 1: Refinitiv Earnings Dashboard

Source: I/B/E/S data from Refinitiv

Retail earnings this week

Overall it was a good week for retail as most retailers beat earnings estimates. The Buckle reported that both its fiscal second quarter earnings and its online sales doubled from a year ago. Likewise, Foot Locker beat Q2 earnings and reinstated its dividend as the strong results were led by its digital business. That’s a recurring trend seen among retail winners this quarter. Retailers have also confirmed that the stimulus checks helped boost consumer spending during the second quarter. This highlights the importance of a second round of stimulus checks to maintain the consumer spending momentum.

Exhibit 2: Same Store Sales and Earnings Estimates/results – August 2020

Source:I/B/E/S data from Refinitiv