Dark clouds over retail stocks, earnings reports suggest sluggish consumer demand - reflecting the adverse effects of inflation.
October 18, 2024 9:59 JST (excerpt)
Retail stocks, which had been performing well, are now facing dark clouds. Following the earnings reports, the weakness in personal consumption has become apparent, leading to an increase in stocks that are difficult to buy higher.
Aeon and Seven & i Holdings both announced first-half earnings in October that fell below market expectations. Seven & i HD lowered its forecast for this fiscal year's operating profit against the backdrop of declining convenience store sales, leading to a decrease of over 4% in their stock prices after the earnings announcement, surpassing the decline rate of the Tokyo Stock Price Index (TOPIX). The retail trade index, which had the highest growth rate in the past 3 months among the 33 industries in TOPIX, now ranks 21st in the past month, highlighting the slowdown.
Retail stocks, which had been performing well, are now facing dark clouds. Following the earnings reports, the weakness in personal consumption has become apparent, leading to an increase in stocks that are difficult to buy higher.
Aeon and Seven & i Holdings both announced first-half earnings in October that fell below market expectations. Seven & i HD lowered its forecast for this fiscal year's operating profit against the backdrop of declining convenience store sales, leading to a decrease of over 4% in their stock prices after the earnings announcement, surpassing the decline rate of the Tokyo Stock Price Index (TOPIX). The retail trade index, which had the highest growth rate in the past 3 months among the 33 industries in TOPIX, now ranks 21st in the past month, highlighting the slowdown.
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