We all heard about the poor earnings throughout last month from retailers and bank to name a few. While an economy that is stuck in slow growth (at best) definitely contributes I was curious to find out where the money was being spent. We know Americans are not saving huge amount so there needed to be a couple sectors where people were spending their money. Below is a report on the top earnings growth rates in Q1 2016.
The couple areas that stand out to me include the top performer MarineMax which is a boat retailer, casinos, and general home building companies. People are spending their money on big ticket items and int he case of boats, cars and casinos all depreciating assets.
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Retail stocks have been getting hammered this week following disappointing quarterly sales numbers from a handful of stores, including Macy’s, Gap, Kohl’s, Nordstrom, and Target.
Executives from nearly every company blamed a spending pullback in one common category for the declines: apparel.
So if consumers aren’t spending on clothes anymore, what are they buying?
People are instead buying big-ticket items, like cars, boats, and swimming pools, as well as building new homes and furnishing them, according to an analysis by Jharonne Martis, director of consumer research for Thomson Reuters.
Consumers are also spending on hotel stays and travel, she found.
To determine where people are diverting their spending money, Martis analyzed Commerce Department data and identified the highest retail performers in terms of earnings growth rates.
“When looking at the winners in terms of earnings, it’s clear there is a nesting theme,” Martis wrote.
Here are the top earnings growth rates, according to Martis’ research. (The first company listed, MarineMax, is a recreational-boat retailer).
