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Similar to last week, on the earnings front, I’m once again spoiled for choice this week with names and sectors that are currently expected to weigh in with earnings. That’s a handy problem since only a handful of companies can make this week’s cut. Like past reports, it’s another giant week for energy with petrol companies like Marathon Energy, BP, Marathon Oil, and ConocoPhillips checking in. Other energy names including Chesapeake, Western Gas, and Duke Energy are also expected to report earnings this week.
Let’s pivot to some retail and consumer names I’ll be watching this week, the reason why, and my question.
Simon Property Group-Reporting Tuesday Before Market Open
Why: If you think about malls, you gotta think about Simon too. Among its portfolio, as of June 30, 2022, Simon reported ownership or interest in 198 properties in the United States, which broke down to consist of 94 malls, 69 Premium Outlets, 14 Mills, six lifestyle centers, and 15 other retail properties in 37 states and Puerto Rico. I’ve watched the debate that the mall was dead vs. long live the mall for quite some time now and with such a high stake in whether or not it’s true, Simon is a great one to watch. On its most recent call, David Simon, Chairman, Chief Executive Officer and President, reported nearly 1,300 leases had been signed, representing over four million square feet in the quarter. “Nearly 40% of our total leasing activity in the first six months of the year has been new deal volume. This is up approximately 25% from last year,” he said.
My Question: Have leases continued to rise in this past quarter and if so, by how much?
UnderArmour-Reporting Thursday Before Market Open
Canada Goose-Reporting Wednesday Before Market Open
Crocs-Reporting Thursday Before Market Open
Why: Each of these brands have the same thing going for them: longstanding brand/consumer loyalty. This past month alone, Crocs celebrated its 20th anniversary by bringing “Croctober” to its fans. The entire month was a love letter to fans that included giveaways and surprises. On October 23, Crocs celebrated Croc Day and released a limited-edition Croc Day Clog. Under Armour has had some struggles lately and reported a revenue beat and EPS miss last quarter. Recently, Telsey visory Group warned that inventory might be a drag on the company. And finally, Canada Goose reported EPS and revenue beats in its last quarter.
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My Question: Did brand loyalty win out for these three this past quarter?
Clorox-Reporting Tuesday After Market Close
Why: It wasn’t that long ago that cleaning and disinfecting products flew off shelves never to be seen again. Things have stabilized some in that department, but Clorox has had some challenges. Recently, the company had to recall 37 million bottles of its Pine-Sol products because of potential bacteria contamination and last quarter, it reported a down forecast.
Regarding the ever elusive supply chain challenges, EVP and CFO Kevin Jacobsen said that despite having to hold inventory in the past, “our expectation is supply chain will still be challenged, but certainly not to the degree we’ve experienced over the last 12 to 18 months. So as a result, we’re going to be able to pull down our inventory levels broadly across the enterprise.”
My Question: Have supply chain woes stabilized more since the last report and what impact does the recall have on the company’s bottom line?
Although the aforementioned companies are but a handful of names to watch, I also have CVS Health, AirBNB, Uber, Estee Lauder, and PayPal on my radar this week.
