Why the Holidays Could Be a ‘Last Hurrah’ for a Stretched U.S. Consumer

Investopedia11-29

Key Takeaways A number of retailers—from Ralph Lauren to T.J. Maxx and Marshalls—brightened their year-end forecasts when fall sales were better than expected.But Americans are focusing more on sales,...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2487534831?lang=en_US&edition=fundamental","thumbnail":"https://www.investopedia.com/thmb/WXGzgvyE_uP9M8Ys7AVCZVOzcvQ=/4500x3000/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-2186442705-c0dea9bd8f2b42118b5739d75289a7d1.jpg","is_english":true,"pubTime":"2024-11-29 18:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2487534831","market":"hk","top_or_hot":-1,"title":"Why the Holidays Could Be a ‘Last Hurrah’ for a Stretched U.S. Consumer","media":"Investopedia","content":"<div>\n<p>Key Takeaways\nA number of retailers—from Ralph Lauren to T.J. Maxx and Marshalls—brightened their year-end forecasts when fall sales were better than expected.But Americans are focusing more on sales,...</p>\n\n<a href=\"https://www.investopedia.com/will-the-holidays-be-a-last-hurrah-for-the-u-s-consumer-8752889\">Source Link</a>\n\n</div>\n","source":"investopedia_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why the Holidays Could Be a ‘Last Hurrah’ for a Stretched U.S. Consumer</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy the Holidays Could Be a ‘Last Hurrah’ for a Stretched U.S. Consumer\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-29 18:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.investopedia.com/will-the-holidays-be-a-last-hurrah-for-the-u-s-consumer-8752889><strong>Investopedia</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Key Takeaways\nA number of retailers—from Ralph Lauren to T.J. Maxx and Marshalls—brightened their year-end forecasts when fall sales were better than expected.But Americans are focusing more on sales,...</p>\n\n<a href=\"https://www.investopedia.com/will-the-holidays-be-a-last-hurrah-for-the-u-s-consumer-8752889\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2237443622.USD","symbol_name":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","start_time":0,"source_url":"https://www.investopedia.com/will-the-holidays-be-a-last-hurrah-for-the-u-s-consumer-8752889","article_id":"2487534831","we_media_id":null,"thumbnails":["https://www.investopedia.com/thmb/WXGzgvyE_uP9M8Ys7AVCZVOzcvQ=/4500x3000/filters:no_upscale():max_bytes(150000):strip_icc()/GettyImages-2186442705-c0dea9bd8f2b42118b5739d75289a7d1.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2487534831","pubTimestamp":1732874400,"columns":[],"sourceInfo":{"source_id":"investopedia_highlight","name":"Investopedia"},"weMediaInfo":null,"summary":"A number of retailers—from Ralph Lauren to T.J. Maxx and Marshalls—brightened their year-end forecasts when fall sales were better than expected.But Americans are focusing more on sales, avoiding big purchases and accruing more debt, economists said.Lower-income consumers, in particular, remain strained, according to economists who say spending could slow down next year.The year is shaping up to be more fruitful than many retailers expected. But several companies say they squeezed a bit more out of drained shoppers—and economists say demand could dry up next year.Shoppers are choosing cheaper brands, stocking up during sales and holding off on big-ticket buys, company leaders said. Many Americans are working hard to cover basic expenses after years of stubborn inflation, while wealthier consumers are holding off on large purchases, economists said.“As we look at shopping behavior and, certainly, behavior we've seen in Q3 and we expect to see going into Q4, we know that consumers are lo","collect":0,"end_time":0,"defaultTopTitle":"investopedia.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2237443622.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc USD","LU2237443465.HKD":"abrdn SICAV I -  GLOBAL DYNAMIC DIVIDEND \"A\" (HKD) INC","LU0950375773.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) INC A","LU2237443978.SGD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A Acc SGD-H","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU0234572021.USD":"高盛美国核心股票组合Acc","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","IE00B19Z9P08.USD":"LEGG MASON CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (USD) INC","LU2264538146.SGD":"Fullerton Lux Funds - Global Absolute Alpha A Acc SGD","LU0175139822.USD":"AB FCP I Global Equity Blend A USD","GAP.AU":"GALE PACIFIC LIMITED","LU1430594728.SGD":"Eastspring Investments - Global Low Volatility Equity AS SGD","LU1066051498.USD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AM2\" (USD) INC","LU2361044865.SGD":"WELLINGTON US QUALITY GROWTH \"A\" (SGDHDG) ACC","TGT":"塔吉特","WMT":"沃尔玛","ELF":"e.l.f. Beauty Inc.","LU0868494617.USD":"UBS (LUX) EQUITY SICAV - US TOTAL YIELD SUSTAINABLE \"P\" (USD) ACC","BK4596":"哈里斯概念","WSM":"Williams-Sonoma Inc","TJX":"The TJX Companies Inc.","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","LU1244550221.USD":"FRANKLIN GLOBAL MULTI-ASSET  INCOME \"A\" (USDHEDGED) INC (M)","LU1778281490.HKD":"HSBC GIF GLOBAL LOWER CARBON EQUITY \"AD\" (HKD) INC","LU0823434740.USD":"BNP PARIBAS US GROWTH \"C\" (USD) INC","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","LZB":"La-Z-Boy家具","RL":"拉夫劳伦","SG9999001440.SGD":"United Global Dividend Equity Fund A SGD Dist","LU0354030438.USD":"富国美国大盘成长基金Cl A Acc","LU1551013425.SGD":"Allianz Income and Growth Cl AMg2 DIS H2-SGD","LU2133065610.SGD":"JPMorgan Investment Funds - Global Dividend A (mth) SGD","LU1066051225.USD":"HSBC GIF GLOBAL EQUITY VOLATILITY FOCUSED \"AC\" (USD) ACC","LU1093756325.SGD":"FTIF - Franklin K2 Alt Strat Fd A (acc) SGD-H1","HD":"家得宝","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A","LU0211328371.USD":"TEMPLETON GLOBAL EQUITY INCOME \"A\" (MDIS) (USD)   INC","GAP":"Gap, Inc","LU0265550359.USD":"BGF SYSTEMATIC GLOBAL ENHANCED EQUITY YIELD \"A2\" (USD) ACC","LU1116320901.HKD":"BGF SYSTEMATIC GLOBAL ENHANCED EQUITY YIELD \"A6\" (HKD) INC","BK4532":"文艺复兴科技持仓","LU0265550946.USD":"BGF SYSTEMATIC GLOBAL ENHANCED EQUITY YIELD \"A5\" (USD) INC","LU2092937221.SGD":"Blackrock Circular Economy A2 SGD-H","LU2430703178.SGD":"WELLINGTON MULTI-ASSET HIGH INCOME \"AM4H\" (SGDHDG) INC","LU1988902786.USD":"FULLERTON LUX FUNDS GLOBAL ABSOLUTE ALPHA \"I\" (USD) ACC","LU2237443382.USD":"Aberdeen Standard SICAV I - Global Dynamic Dividend A MIncA USD","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","LU2360032135.SGD":"ALLSPRING GLOBAL EQUITY ENHANCED INCOME \"A\" (SGDHDG) INC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H"},"translate_title":"为什么假期可能是捉襟见肘的美国消费者的“最后欢呼”","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"WSM":1,"WMT":1,"ELF":1,"GAP":1,"GAP.AU":1,"HD":1,"TJX":1,"TGT":1,"RL":1,"LZB":1},"content_text":"Key Takeaways\nA number of retailers—from Ralph Lauren to T.J. Maxx and Marshalls—brightened their year-end forecasts when fall sales were better than expected.But Americans are focusing more on sales, avoiding big purchases and accruing more debt, economists said.Lower-income consumers, in particular, remain strained, according to economists who say spending could slow down next year.\n The year is shaping up to be more fruitful than many retailers expected. But several companies say they squeezed a bit more out of drained shoppers—and economists say demand could dry up next year. \n\n\n Sales were stronger than expected this fall, encouraging companies like Gap (GAP), Ralph Lauren (RL), TJX Cos. (TJX), E.l.f. Beauty (ELF), Home Depot (HD) and Walmart (WMT) to raise their year-end forecasts even as executives highlighted signs of consumer strain. \n\n\n Shoppers are choosing cheaper brands, stocking up during sales and holding off on big-ticket buys, company leaders said. Many Americans are working hard to cover basic expenses after years of stubborn inflation, while wealthier consumers are holding off on large purchases, economists said.\n\n\n “After the pandemic, people were buying a lot,\" said Bernie Baumohl, chief global economist at The Economic Outlook Group. \"But you reach a saturation point. You’ve got all the flat-screen TVs, [all] the cars you need.\"\n\n\n  Consumer Spending Grows, Incrementally   \n Americans’ feelings about the economy have improved in recent months, but consumer sentiment remains below pre-pandemic levels, according to the University of Michigan’s Consumer Sentiment Index. Economists have been surprised by increases in core retail spending, which rose 0.4% in October, according to Commerce Department data.\n\n\n Meanwhile, credit delinquency rates remained “elevated” in the third quarter as credit-card balances rose, according to the New York Fed.\n\n\n Brands have capitalized by catering to a widespread hunt for lower prices. Marshalls and T.J. Maxx, “crush competition on value,” the CEO of their parent company, Ernie Herrman, told analysts last week. Old Navy has made inroads with moderate- and high-earners, Gap CEO Richard Dickson said. And households with six-figure incomes propelled Walmart’s growth, CEO Douglas McMillon said. \n\n\n \n\n\n\n\n\n \n Walmart CEO Douglas McMillon.\nDavid Paul Morris / Bloomberg via Getty Images\n\n Walmart has slashed prices on thousands of items, as did Target (TGT). But the third quarter was harder on Target, a business built less on kitchen staples, and more on apparel and other discretionary items. Target did more transactions last quarter, but they tended to be for smaller sums, executives said, with customers showing a more “pronounced” response to promotions than a year ago.  \n\n\n “As we look at shopping behavior and, certainly, behavior we've seen in Q3 and we expect to see going into Q4, we know that consumers are looking for value,” Target CEO Brian Cornell said recently. ”We think that's going to continue.”\n\n\n  High-Income Households Pull Back on Big Purchases  \n Many consumers are searching for ways to save on essentials, said Chedly Louis, vice president of corporate finance at Moody’s Ratings, but those with more money have an easier time taking advantage of savings strategies.\n\n\n “That low- to mid-income consumer is generally going to the grocery store more often, but basket sizes are smaller,” said Louis. “That mid- to high-income consumer is more willing to shop at a Costco, at a Walmart, and buy in bulk.”\n\n\n \n\n\n\n\n\n \n Demand for furniture has softened, Williams Sonoma executives said recently.\nSmith Collection / Gado / Getty Images\n\n Affluent Americans are still spending relatively freely, said Oren Klachkin, a financial market economist at Nationwide Mutual Insurance Company. But they're reluctant to make major purchases because of high interest rates and uncertainty about how the next president's policies and geopolitical conflicts may shape the economy, he said.  \n\n\n That has curbed big-ticket sales at several retailers. Target shoppers are passing up TVs in favor of smaller indulgences like candles and vases, according to Executive Vice President Rick Gomez. Major home renovations have slowed, according to Lowe’s and Home Depot, which said transactions above $1,000 fell nearly 7% year-over-year in the last quarter. And demand for furniture is relatively weak, La-Z-Boy (LZB) and Williams-Sonoma (WSM) executives said on recent earnings calls.\n\n\n The holiday shopping season may turn out to be a \"last hurrah,\" according to Baumohl.\n\n\n \"Consumers are fairly optimistic about the outlook for the economy,” he said. But “come next year, we’re going to see some of that confidence fade in large part because people are going to face the reality of their personal finances.\"\n\nDo you have a news tip for Investopedia reporters? Please email us at\ntips@investopedia.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2487534831"}