The retail sector continued to report strong gains on Thursday as Macy’s and Kohl’s estimates were slightly outperformed – much like their counterparts earlier this week – although some investors are starting to worry about margins as companies face supply chain problems and labor shortages are faced with rising costs.
Department store chains Macy’s and Kohl’s reported quarterly results on Thursday that exceeded expectations, with both companies raising their forecasts for the year and continuing the trend of strong retail profits this week.
Macy’s shares rose over 21% and Kohl’s shares rose 8%.
Earlier this week, big box retailers like Walmart and Target also beat quarterly earnings and sales estimates thanks to growth in digital sales and sales in the same store, while increasing their financial forecast for the year.
However, both retailers admitted that they are absorbing higher costs from supply chain problems and labor shortages rather than passing them on to consumers: Walmart and Target stocks have both declined since winning, falling 3.5% and 5.5%, respectively.
Home improvement chains like Home Depot and Lowe’s beat earnings expectations thanks to a strong housing market – consumers continue to spend even though prices for houses and building materials have risen since last year.
Home Depot’s stock is up over 9% after Tuesday’s gains, while Lowe’s shares are up 1% since Wednesday’s reporting.