- Earnings reports and revenue forecasts this week make clear inflation is shaping what we buy.
- Retailer $4 warned that it now expects second-quarter sales to be down 6% to 7%.
From at-home tests for COVID-19 to lotions and fragrances, inflation seems to dictating winners and losers when it comes to what we buy.
Fresh earnings news and revenue forecasts make clear that many of us are sticking with the things we must buy and thinking twice about some of the small luxuries we often snap up to treat ourselves. It's little surprise given that the US inflation rate, fueled by high energy and food costs, is sitting at a 40-year high.
On Wednesday, $4, which provides COVID-19 testing kits and makes the baby-formula brand
While shoppers might be apt to purchase healthcare necessities and then splurge on small comforts, some price-conscious consumers are opting out of buying items they don't deem essential.
$4, known for its scented lotions and candles, warned Wednesday that it expects second-quarter sales to be down 6% to 7% over the prior year. The company said some consumers are skipping trips to the mall while others are being more cautious when they shop.
Bath & Body Works said its customer base generally reflects the US population across income levels and that some of its shoppers are looking for items on sale or simply going without.
"Customers, particularly lower income customers, have become more cost conscious and are limiting purchases," the company $4.
At Abbott, the higher sales of COVID-19 tests helped offset financial hits stemming from infant formula shortages and a recall.
Despite surging prices for gas, food, and rent, among others, in-store clothes shopping $4 from last year. And consumers are still $4, and even simple luxuries like $4remain stable. Yet the longer elevated prices endure, some discretionary spending could take a hit.
Abbott shares fell about 2% in afternoon trading while Bath & Body Works rose about 1%.