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FASHION VALUE CHAIN

In the coming days, a wide range of companies, from well-known in-home exercise company Peloton to green energy behemoth Jinko Solar, will be expected to report their earnings. The fact that so many businesses and sectors are still struggling with issues like troubled supply chains, pressure from inflation, and inventory overstocks makes the story all the more compelling as more information becomes available. Here are some names I’ll be paying close attention to this week, even if it’s impossible to predict who will win and shine.

Macy’s-reporting Tuesday before markets open

Nordstrom JWN -18.2%-reporting Tuesday after markets close :Why: As the big department store names that will report earnings this week, they are both fantastic barometers to help shape the overall sector picture. The department store sector has gone through a lot over the past few years, and pandemic related issues certainly haven’t helped. According to the Census Bureau’s retail report, in July, consumers spent $11,191 billion in department stores, down from $11,246 billion in June and $11,527 billion in May. Meanwhile, both Macy’s and Nordstrom most recently reported EPS beats.

My Question: With overall spending at department stores in flux over the past handful of months, inflation being what it is, and the potential for boundless inventories, who will benefit more: the customer or the company?

Petco-reporting Wednesday before markets open

Why: Last May, the ASPCA estimated that nearly one in five US households acquired a cat or a dog since the start of the COVID-19 pandemic. This estimate puts nearly 23 million furry friends into our homes. When family members were at home more, pet needs such as training, walking, and companionship were an easier affair for many families, but with more returns to class and the office, it’s probably natural to expect some kind of spike in overall customer needs at pet retail and service shops.