Latest news with #inventory
Auto Blog
2 days ago
- Automotive
- Auto Blog
See the Winners and Losers of May's Post-Tariff Sales Rush
Lower inventories played a key role in defining May's auto sales The U.S. light vehicle sales rate dropped to 15.65 million units in May, down from 17.25 million in April and 17.83 million in March, according to Wards Intelligence data. This decline—the largest since the COVID-19 pandemic's onset in April 2020—was partially due to lower auto inventory levels from a March-April sales surge of shoppers trying to beat tariff-related price hikes. May also saw a 10% drop in incentive spending from April, as less inventory reduces dealers' need to offer discounts, rebates, and other special offers. Wards Intelligence forecasts that this sales dynamic will continue through June and into Q3, with automakers generally hesitant to ramp up production and replace inventory amid the ongoing trade war. A Ford F-150 Lightning electric pickup truck is displayed for sale at a Ford dealership on August 21, 2024 in Glendale, California. — Source:'Given the swirling tariff, consumer, and auto inventory conditions, the expected May 2025 auto sales result will likely be the last period this year to post positive growth in year-ago and month-prior comparisons,' said Chris Hopson, principal analyst of S&P Global Mobility. Some of May's top-performing automakers Ford Motor Company reported a 16% U.S. sales increase to 220,959 units in May year-over-year, with positive gains at both Ford and Lincoln. The 2025 Escape was one of Ford's best-sellers in May, with sales catapulting 24% to 17,395 units. Ford's 2024 Explorer saw a 23% sales increase to 20,504 vehicles. Bronco Sport sales rose 46% to 14,472 units, and the Maverick saw a 14% gain to 15,508 deliveries. Hyundai Motor and its affiliate Kia said their combined U.S. vehicle sales rose 6.4% in May from last year but added that their growth was lower in the previous month, according to Korea JoongAng Daily. In addition to selling its 17 millionth vehicle since entering the U.S. market in 1986 and launching Ioniq 9 deliveries, Hyundai's Venue, Elantra N, Santa Fe, Tucson, IONIQ 6, and Palisade reached May total sales records. In May, Hyundai U.S. sales, not including its luxury Genesis brand, rose 8%, its total hybrid sales increased by 5%, and the automaker's electric vehicle (EV) and hybrid lineup had its best month ever. Kia's sales increased 5.1% to 79,007 units from 75,156, thanks to hot-selling models like the Telluride and Sportage SUVs, the Carnival minivan, and the K4 sedan. Signage at a Hyundai dealership in Richmond, California — Source: Getty Final thoughts While most automakers have begun reporting sales figures quarterly instead of monthly, Ford Motor Company and Hyundai Motor sales were better than expected, with Ford thriving on its employee pricing program running through July 6. Still, most countries haven't reached deals with the U.S. on reduced auto tariffs, making price hikes and lower sales all but certain in the coming months. Automakers exporting cars to the U.S. do have some light at the end of the tunnel, as a panel of judges on a federal trade court ruled that many of Trump's sweeping tariffs, including those on vehicles and car parts, exceeded the President's legal authority. A second D.C. federal court also deemed the tariffs illegal, but both rulings are on hold because of appeals.
Bloomberg
3 days ago
- Business
- Bloomberg
Oil Holds Gains With Focus on US Inventories, Canada Wildfires
Oil steadied after two days of gains as a US industry group signaled a decline in nationwide crude inventories and rain slowed the growth of some blazes that had shut in Canadian production. West Texas Intermediate traded near $63 a barrel after adding more than 4% in the previous two sessions, while Brent closed above $65. The American Petroleum Institute reported stockpiles fell by 3.28 million barrels last week, according to a person familiar. That would be the biggest draw since March if confirmed by official data later on Wednesday.
Forbes
3 days ago
- Business
- Forbes
Is Dollar General Poised For A Post-Earnings Move?
CHICAGO, ILLINOIS - MAY 28: A sign for a Dollar General store is seen on May 28, 2025 in Chicago, ... More Illinois. (Photo by) Dollar General (NYSE:DG) is set to announce its fiscal first-quarter earnings on Tuesday, June 3, 2025, with analysts forecasting earnings of $1.49 per share and revenue of $10.29 billion. This would indicate a 10% decline in earnings year-over-year and a 4% increase in sales compared to last year's figures of $1.65 per share and $9.91 billion in revenue. Historically, DG stock has decreased 74% of the time following earnings announcements, with a median one-day drop of 4.2% and a maximum observed decline of 32%. Dollar General's emphasis on domestically sourced essential products, including food, health, and household items, means that roughly 4% of its inventory is imported, thereby limiting its exposure to cost increases related to tariffs. Nevertheless, the company's growth has been inconsistent in recent years. The profitability of the retailer has sharply declined: fourth-quarter earnings per share plunged 53% year-over-year, leading to a 32% overall drop for the year 2024. A significant factor contributing to the company's recent difficulties has been its surplus inventory. For the current fiscal year ending in January, it anticipates net sales to increase between 3.4% and 4.4%, but same-store sales—indicating performance at locations that have been open for at least one year—are expected to rise by only 1.2% to 2.2%. The company currently has a market capitalization of $21 billion. Revenue over the past twelve months was $41 billion, and it operated profitably with $1.7 billion in operating profits and a net income of $1.1 billion. Buy or Sell Dollar General Stock? For event-driven traders, historical patterns might provide an advantage, whether by preparing ahead of earnings or responding to movements after their release. That being said, if you are looking for upside with reduced volatility than that typically found in individual stocks, the Trefis High Quality portfolio offers an alternative, having outperformed the S&P 500 and delivered returns surpassing 91% since its launch. See earnings reaction history of all stocks. Some insights on one-day (1D) post-earnings returns: Additional data regarding observed 5-Day (5D) and 21-Day (21D) returns after earnings are compiled along with the statistics in the table below. DG 1D, 5D, and 21D Post Earnings Return A relatively less risky approach (though not effective if the correlation is low) involves assessing the correlation between short-term and medium-term returns post-earnings, pinpointing a pair that demonstrates the highest correlation, and executing the corresponding trade. For instance, if 1D and 5D show the strongest correlation, a trader could position themselves "long" for the next 5 days if the 1D post-earnings return is positive. Below is some correlation data based on 5-year and 3-year (more recent) history. It is important to note that the correlation 1D_5D pertains to the relationship between 1D post-earnings returns and the subsequent 5D returns. DG Correlation Between 1D, 5D, and 21D Historical Returns Occasionally, the performance of peers can impact the post-earnings stock reaction. In fact, the pricing-in might commence even before the earnings are announced. Here is some historical data on the past post-earnings performance of Dollar General stock in comparison with the stock performance of peers that reported earnings shortly before Dollar General. For a fair comparison, peer stock returns also reflect post-earnings one-day (1D) returns. DG Correlation With Peer Earnings Discover more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all three, the S&P 500, S&P mid-cap, and Russell 2000), achieving remarkable returns for investors
TechCrunch
28-05-2025
- Automotive
- TechCrunch
Dozens of unsold Tesla Cybertrucks are piling up at Detroit parking lot
In Brief Tesla's Cybertruck sales dropped significantly in recent quarters, leading to a rapid buildup of unsold inventory. And it looks like the company is resorting to unconventional storage sites for the excess vehicles. One such location, per Crains Detroit Business, is a Detroit shopping center that is now in violation of city code for storing dozens of Cybertrucks and other unsold Teslas in its parking lot. No doubt the parking lot looks like a dystopian graveyard with rows upon rows of shiny silver Cybertrucks taking up space where shoppers once came to visit the now-closed Bed, Bath and Beyond and Torrid. The Buffalo Wild Wings in the shopping center, though, is still open. The lot is near a new Tesla showroom in West Bloomfield, which may account for the overflow. Crain's reports that the shopping center landlord has been informed of the violation, but enforcement could take some time. While still outselling other electric trucks, Tesla's Cybertruck has underperformed CEO Elon Musk's hopes for its success after eight recalls within a year and the automaker's brand devaluation due to Musk's political involvement.
Reuters
28-05-2025
- Business
- Reuters
India's SAIL posts quarterly profit drop on inventory costs
May 28 (Reuters) - Steel Authority of India (SAIL) ( opens new tab reported a lower fourth-quarter adjusted profit on Wednesday, hurt by inventory costs. The state-owned firm's profit before exceptional items and tax dropped 13% to 15.94 billion Indian rupees ($187 million) in the quarter ended March 31. Revenue grew 5% to 293.16 billion rupees. But its expenses rose about 6% due to an inventory charge in the current quarter that it had not incurred a year before. SAIL's results come a month after the government imposed a temporary 12% tax on some steel imports, known locally as a safeguard duty, to protect local producers who had to scale down operations and mull job cuts due to an influx of cheaper imports. Earlier this month, industry leader JSW Steel ( opens new tab posted quarterly profit that missed analysts' estimates as weaker prices weighed. However, a decline in costs of iron ore and coking coal — key steelmaking ingredients — helped offset the impact of weak prices for Tata Steel ( opens new tab. PEER COMPARISON * The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell ** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT JANUARY-MARCH STOCK PERFORMANCE -- All data from LSEG -- $1 = 85.3840 Indian rupees
