Q2 2023 U.S. Retail Scorecard – Update Aug. 29, 2023

To date, 180 of the 200 companies in our Retail/Restaurant Index have reported their EPS results for Q2 2023, representing 90% of the index. Of those companies that have reported their quarterly results, 79% announced profits that beat analysts’ expectations, while 5% delivered on-target results and 16% reported earnings that fell below estimates. The Q2 2023 blended earnings growth estimate now stands at 20.3%.

The blended revenue growth estimate for the 200 companies in this index is 3.3% for Q2 2023. Of those companies that have reported their quarterly results so far, 62% announced revenue that exceeded analysts’ expectations and the remaining 38% reported that their revenue fell below analysts’ forecasts.

Exhibit 1: LSEG Earnings Dashboard

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

This week in retail

Best Buy beat its Q2 earnings, revenue and same store sales results. After a strong pandemic sales streak, revenue has come down from its high. The retailer said, “Our industry continues to experience lower consumer demand due to the pandemic pull forward of tech purchases and the shift back into services spend outside the home, like travel and entertainment.” (Source: BBY Q2 2024 Earnings Call)

The electronics retailer knew it would be a challenging year, and consequently is narrowing its outlook, like many other retailers.

Here are the Q2 2023 earnings and same store sales estimates for the companies reporting this week:

Exhibit 2: Same Store Sales and Earnings Estimates–Q2 2023

Source: LSEG I/B/E/S