Latest news with #MarkMathews
Yahoo
4 days ago
- Business
- Yahoo
Why 'uncertain' consumers are retailers' biggest challenge
Retailers are split on how to handle tariffs: Some are raising prices, while others are absorbing the hit. National Retail Federation executive director of research Mark Mathews joins Morning Brief to explain how consumer uncertainty is shaping spending patterns and what strategies could help retailers stay competitive. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Well, retailers across the U.S. are taking different approaches to tariffs, with some raising prices for consumers and others choosing to eat the costs. Joining us now, we've got Mark Matthews, who's the National Retail Federation Executive Director of Research. Good to have you back on the program with us. How are you viewing the retail landscape right now and and the pulse that you're hearing from some of the executives in the face of some of the uncertainty that they're citing when they report earnings? Yeah, it's a great question. It's a really challenging environment right now, uh, just trying to understand what the consumer is doing and how the consumer is behaving. In January and February, we saw, uh, strong disposable income, we saw strong, uh, you know, consumer finances, but sentimentally, consumers have been weak. Uh, you know, as we all know, sentiment is is very low. Uh, and we definitely saw some fallback, fall off in spending in in January and February. Uh, however, we saw the opposite in in March and April, uh, as we saw consumers pull purchases forward because they were worried about tariffs. And and right now, I guess the big question for everybody is, you know, what's going to happen next? Uh, you know, some of those pulled forward purchases represent lost future sales, uh, and we still have a very uncertain consumer. Uh, so the the the challenge becomes understanding where they're headed. And right now, as we see, consumers are are are uncertain, they're concerned, and it looks like, you know, we we see a lot of trading down. You know, consumers are looking for value for the for their dollar. Yeah, they certainly are, Mark. It makes me wonder, too, which retailers are best positioned to win in that particular environment. What do you think is the winning strategy for retailers to navigate tariff policy? Yeah, I think we saw something pretty similar in in 2022 when we had high inflation. When the consumer is out there looking for the best price, uh, you want to be a retailer that is offering the best price. Uh, you want your consumer to believe that, uh, they're getting value for their dollars. So I think that's a challenge for everybody, and uncertain consumer means that they're going to be much more careful with, uh, with their money.
Reuters
19-05-2025
- Business
- Reuters
Tepid home improvement sales put Home Depot, Lowe's under microscope
May 19 (Reuters) - As Home Depot (HD.N), opens new tab and Lowe's (LOW.N), opens new tab get set to report earnings this week, April sales data from independent firms have investors gauging the likelihood of recession against the uncertainty of tariff whiplash. With homeowners tending to lawns, gardens and DIY projects as the weather warms, investors are keeping an eye not just on the home retailers' sales, but indicators about the health of the consumer. 'People don't have the savings they did during the pandemic, and they're relying on high employment and wage growth to continue to be able to spend,' said Mark Mathews, executive director of research at the National Retail Federation. Home improvement spending tends to be a bellwether for broader economic health, Mathews said, because it reflects consumers' ability to take on big projects, and can be a leading indicator of activity in the housing market. April credit and debit card sales were not promising. Spending at building and garden supply stores fell 2% year-over-year in April, even as every other retail category saw growth, according to May data from NRF. At Lowe's, April sales tumbled nearly 3% year-over-year after having risen 6.6% in March, debit and credit card purchase data from Affinity Solutions revealed. Home Depot saw just a 0.7% jump after a 4.2% rise in March, according to the data. Consumers' intention to shop at these stores in the future also fell slightly in April, according to HundredX, a company that uses surveys to gauge public sentiment about retailers. Compared to April of 2024, both stores saw about a 1% year-over-year decrease in future purchase intent. Among lower-income shoppers - those more vulnerable to economic instability - the drop was sharper, HundredX found. Home Depot and Lowe's declined to comment. It might indicate that a rebound in the stalled U.S. housing market is a ways off. 'People keep baking in the assumption of a recovery, and then it keeps getting pushed out,' said Courtney Yakavonis, a senior equity analyst at Columbia Threadneedle Investments, which holds stock in both retailers. 'I believe it's going to happen eventually, but the timeline is murky.' Others in the sector have hinted at the specter of a slowdown. Tractor Supply Co. (TSCO.O), opens new tab cut its annual profit forecast in April, citing macroeconomic uncertainty. But experts interviewed by Reuters weren't ready to forecast a recession. Wage and job growth is fairly steady, and there could be plenty of reasons for an April sales slump - including tariffs, said Morningstar analyst Jaime Katz. President Donald Trump on April 2 announced sweeping tariffs on a host of trade partners, only to later pause them for 90 days. He imposed a virtual embargo on Chinese imports on April 9, but earlier this month paused those tariffs as well. The uncertainty has discouraged consumers from buying big items, Katz said, which is why she'll be putting more weight on how Home Depot and Lowe's performed last quarter with professional contractors. Yakavonis said she wants to hear more about how Home Depot and Lowe's will manage tariffs. Though neither company is overly exposed to China, tariff uncertainty makes it hard to assess their financial health. 'It's hard to just do the Excel math without knowing what steps they're taking to offset that,' she said. Home Depot is due to report earnings on Tuesday, while Lowe's is slated to report on Wednesday.
Yahoo
19-05-2025
- Business
- Yahoo
Tepid home improvement sales put Home Depot, Lowe's under microscope
By Nicholas P. Brown (Reuters) - As Home Depot and Lowe's get set to report earnings this week, April sales data from independent firms have investors gauging the likelihood of recession against the uncertainty of tariff whiplash. With homeowners tending to lawns, gardens and DIY projects as the weather warms, investors are keeping an eye not just on the home retailers' sales, but indicators about the health of the consumer. 'People don't have the savings they did during the pandemic, and they're relying on high employment and wage growth to continue to be able to spend,' said Mark Mathews, executive director of research at the National Retail Federation. Home improvement spending tends to be a bellwether for broader economic health, Mathews said, because it reflects consumers' ability to take on big projects, and can be a leading indicator of activity in the housing market. April credit and debit card sales were not promising. Spending at building and garden supply stores fell 2% year-over-year in April, even as every other retail category saw growth, according to May data from NRF. At Lowe's, April sales tumbled nearly 3% year-over-year after having risen 6.6% in March, debit and credit card purchase data from Affinity Solutions revealed. Home Depot saw just a 0.7% jump after a 4.2% rise in March, according to the data. Consumers' intention to shop at these stores in the future also fell slightly in April, according to HundredX, a company that uses surveys to gauge public sentiment about retailers. Compared to April of 2024, both stores saw about a 1% year-over-year decrease in future purchase intent. Among lower-income shoppers - those more vulnerable to economic instability - the drop was sharper, HundredX found. Home Depot and Lowe's declined to comment. It might indicate that a rebound in the stalled U.S. housing market is a ways off. 'People keep baking in the assumption of a recovery, and then it keeps getting pushed out,' said Courtney Yakavonis, a senior equity analyst at Columbia Threadneedle Investments, which holds stock in both retailers. 'I believe it's going to happen eventually, but the timeline is murky.' Others in the sector have hinted at the specter of a slowdown. Tractor Supply Co. cut its annual profit forecast in April, citing macroeconomic uncertainty. But experts interviewed by Reuters weren't ready to forecast a recession. Wage and job growth is fairly steady, and there could be plenty of reasons for an April sales slump - including tariffs, said Morningstar analyst Jaime Katz. President Donald Trump on April 2 announced sweeping tariffs on a host of trade partners, only to later pause them for 90 days. He imposed a virtual embargo on Chinese imports on April 9, but earlier this month paused those tariffs as well. The uncertainty has discouraged consumers from buying big items, Katz said, which is why she'll be putting more weight on how Home Depot and Lowe's performed last quarter with professional contractors. Yakavonis said she wants to hear more about how Home Depot and Lowe's will manage tariffs. Though neither company is overly exposed to China, tariff uncertainty makes it hard to assess their financial health. 'It's hard to just do the Excel math without knowing what steps they're taking to offset that,' she said. Home Depot is due to report earnings on Tuesday, while Lowe's is slated to report on Wednesday. Sign in to access your portfolio
Yahoo
18-02-2025
- Health
- Yahoo
Big cat sanctuary to reopen after deadly bird flu outbreak
A big cat sanctuary in Washington plans to reopen next week after a bird flu outbreak killed over half of their animals. The Wild Felid Advocacy Center in Shelton said it plans to welcome visitors back on Feb. 25, the following Thursday and Saturday. 'It will be a slow opening with just a handful of guests per visitor day,' WFAC Director Mark Mathews said. At the end of 2024, the sanctuary lost 20 wild cats to bird flu. The first deaths came in November, but the cause of death wasn't confirmed until the end of December. The first to get sick was a cougar, Hannah Wyoming. The veterinarian thought she had cancer. And when Crackle, an African Caracal got sick, the vet thought the cause was cancer, too. But the big cats died, and others soon followed. The remaining 17 cats were put into quarantine with strict protocol. Staff were required to disinfect their footwear, wear masks and gloves, and, depending on how close they were to the cats, wear gowns. The shelter said they believe that the bird flu may have come from tainted food and threw out about 8,00 pounds as a precaution. Matthews told KIRO 7 that the cats are doing fine, and the sanctuary is now focusing on providing them with more room. The Wild Felid Advocacy Center has a series of construction projects underway through March that will increase habitat size, feature multiple-level deck construction, and incorporate more gardens and foliage to create seclusion and spaces of relaxation. The sanctuary needs donations to make this a reality, to care for the animals, and to keep the doors open. If you'd like to help, you can do so by clicking here.
