To date, 145 of the 199 companies in our Retail/Restaurant Index have reported their EPS results for Q2 2023, representing 72% of the index. Of those companies that have reported their quarterly results, 79% announced profits that beat analysts’ expectations, while 4% delivered on-target results and 17% reported earnings that fell below estimates. The Q2 2023 blended earnings growth estimate now stands at 17.6%. The blended revenue growth estimate for the 199 companies in this index is 3.1% for Q2 2023. Of those companies that have reported their quarterly results so far, 64% announced revenue that exceeded analysts’ expectations and

It’s Amazon Prime Week, and every year retailers ride the coattails of Prime Week with their own sales. During the last earnings season, most retailers agreed that consumers are cautious and are trading down. Therefore, this Prime Week, retailers are betting that heavy promotions will entice shoppers to open up their wallets, especially since consumers have become value oriented. There is no doubt consumers will be doing online price comparison this week and other retailers are hoping to capitalize on this phenomenon by offering steep discounts. Rising online discounts Amazon will offer these deals primarily online and only to its

Amazon’s Q3 2022 revenue increased 14.7% year over year to $127.1 billion, nearly in line with estimates of about $127.46 billion.  Meanwhile, operating income missed expectations and dropped 48% from a year ago. These misses come despite a strong Prime Day globally in July. Exhibit 1: Amazon Q3 2022 Earnings and Revenue Estimates vs. Results Source: Refinitiv I/B/E/S Amazon’s global exposure is also being hit by macroeconomic issues as rising inflation continues to diminish the consumer’s purchasing power. “Primarily in the consumer stores business, it was in international. North America, obviously, it was strong, but it started to slow a