H Wall Street you do not know if he will do Christmas this year, as many listed from his field retail they fear danger sharp “brake” on consumer spendingunder the fear of historical inflation.

In view of the festive season, in which the businesses of the sector have “bet” a lot, several analysts estimate that revenues will not meet high expectationswhile they tighten the belt.

So far, 2022 has been tough on retail stocks and is not out of the question the sales of the fourth quarter -traditionally the best quarter of the year- not to do the necessary… “life-saving”.

The first “bell” has already rung, as well traders’ positions remain cautious. A move we also saw last May, when retail companies rushed to cut estimates for profitability.

It is no coincidence that its stock Target Corp. accepted strong pressures last weekafter confirming her sales slowdown during October, while discounting further weakness in some sub-sectors such as games.

THE US Retail Federation, meanwhile, predicted that holiday sales will grow at a more significant pace than last year. And the Amazonfor her part, she spoke of the younger one quarterly revenue growth in its history, which temporarily took it below the threshold of 1 trillion. dollars (in capitalization terms).

“Bad mantatas” reflect the negative economic environmentas inflation, uncertainty and higher borrowing costs (increasing interest rates) cast a heavy “shadow” on consumer psychology.

During the third quarter, the Diversified Equity Fund, which manages assets of 2 billion. dollars, sold all of its stake in consumer companies Target and Walmart. At the same time, the percentage of short positions has increased to 3.7% from 2.7% at the beginning of the year.

The final month of 2022 is undoubtedly seen as extremely critical for retailers, whose shares have lose at least 30% of their value since the beginning of the year.

Over the course of the week, investors will receive additional information on the path of industry results, as companies Best Buy and Nordstrom they will publish the figures for the 9th month, while they will also make a first estimate for the festive season.

“It’s hard to predict the next couple of months as companies try to sell off their inventory and make spending cuts explain” Stacey Wilditz, president of SW Retail Advosorsspeaking to the Bloomberg agency.

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