Some retailers reported slowing consumer sales Tuesday, with customers paring back on spending amid high inflation and an uncertain economic backdrop.
Shares of Conn’s dropped more than 5% in morning trading after the retailer of furniture, home appliances and consumer electronics reported that its profit shrank significantly in the second quarter, while revenue and earnings missed analysts’ expectations.
Chief Executive Chandra Holt said challenging macroeconomic conditions put pressure on consumer spending during the quarter.
Shares of Big Lots and Best Buy added 6.5% and 7.6%, respectively, after also reporting quarterly results Tuesday morning.
Big Lots posted a narrower-than-expected second-quarter loss and sales that edged ahead of analysts expectations. Still, the company’s CEO said consumers are stretched by inflation.
Best Buy’s profit and sales dropped in the latest quarter, as spending on computers and other home electronics dried up compared with earlier in the pandemic.
The retailer, which was one of several major chains to warn over the summer of a pullback by consumers, said Tuesday that comparable sales and operating profits would drop at similar rates in the fall quarter. WSJ