What recent retail earnings revealed about the state of consumer health

Consumer sentiment hit new lows in May, according to the University of Michigan’s consumer sentiment index, but quarterly retail earnings show a resilient consumer that is still willing to spend. 

Last week, retail giants including Home Depot, Walmart, Target, TJX and Urban Outfitters, Inc. reported their quarterly earnings. And there were a surprising number of bright spots considering the inflationary pressure both retailers and consumers have faced over the past year.

Target reported its first quarter of sales growth in more than a year, driven by the success of viral partnerships with brands like Roller Rabbit, Parke and Pokémon that brought more people into stores. The off-price sector also continues to soar, with TJX reporting net sales of $14.3 billion in its fiscal first quarter, up 8% year over year on a constant currency basis. 

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