ICYMI: Retailers Report Earnings and Holiday Season Preparations, Inventories Up from Last Year

"Home Depot's sales growth is in accord with other big retailers' sustained momentum."

Today in the news, corporate executives expressed confidence in their inventories in the face of supply chain bottlenecks and increased demand as we head into the holiday season. Pre-Black Friday sales have already kicked off at some retailers. Meanwhile, Home Depot shares hit record highs after the company reported strong earnings, and other major retailers are achieving similar results.

See excerpts from the articles below:

Target Corporation: The Wall Street Journal reports, "On a call with reporters, Target Chief Executive Brian Cornell said, 'We've seen strength throughout the year.' Sales rose strongly in each of the five main categories the retailer sells, he said. 'We've made a big investment in both inventory and in staffing to make sure we are going to be there to provide the items the guest is looking for and great service.'"

Forbes reports, "Target also released information about being in-stock for the holidays by working proactively to move products quickly from overseas to the U.S. market. The company's inventory is higher than last year and it feels confident it will have a successful holiday season."

Lowe's: On a recent earnings call, Lowe's reported, "At the end of the quarter, inventory was $16.7 billion dollars, which is $1 billion higher than the third quarter of 2020." CNN Business adds, "Lowe's shares rose 4% Tuesday and are up more than 50% this year."

Sysco: According to the Motley Fool, Sysco CEO Kevin Hourican said on a recent earning call, "We have more inventory on hand at this moment in time than we did pre-COVID."

TJX: The Wall Street Journal is reporting, "TJX, owner of off-price chains TJ Maxx, Marshalls and HomeGoods, said comparable sales for open stores increased 14% from fiscal 2020, while net sales rose 24% from the previous year, to $12.5 billion." In addition, "TJX said its inventory as of Oct. 30 was at $6.6 billion, up from $6.3 billion in fiscal 2020." MarketWatch included a statement from CEO Ernie Herrman saying, "We are in an excellent inventory position, with most of the product needed for the holiday season either on hand or scheduled to arrive at our stores and online in time for the holidays."

Home Depot: The Wall Street Journal notes, "Home Depot Inc. achieved better-than-expected results for the latest quarter, a sign that the home-improvement retailer could be avoiding the worst effects of the supply-chain snarls reverberating across the economy." The article continues, "Home Depot's sales growth is in accord with other big retailers' sustained momentum" and adds, "Its results are also evidence of how some retailers have found ways to continue improving profits despite rising input prices and logistics challenges." CNN Business highlights that "Home Depot reported earnings for the third quarter Tuesday that easily topped forecasts. Overall sales rose nearly 10% from a year ago to $36.8 billion, also surpassing Wall Street's estimates."

Ulta Beauty: In Forbes, Ulta COO Kecia Steelman says, "'Our team is working diligently to mitigate risk by collaborating with our brand partners to prioritize inventory for the holiday season. We feel confident in our holiday strategy.'" Steelman additionally noted that "the company expects to see greater flexibility and increased in-store shopping this year."

Best Buy: In Forbes, Best Buy CEO Corie Barry stated, "'We are going into the holiday season with 20% more inventory than two years ago (pre-pandemic levels).' A spokesperson for Best Buy added that inventory is actually getting better month over month as it works with vendor partners year-round on securing products to offer to its customers." And, "'On top of all of this, we have a growing suite of fulfillment capabilities. We think we can ship faster than anyone and we've built more capabilities within our warehouses and stores to get the products our customers want to them faster.'"

Walmart: According to the Wall Street Journal, "Walmart said its inventory position is strong heading into the holidays."