Yahoo Finance

With $43.5 billion in consolidated 2023 sales, Best Buy is the largest pure-play consumer electronics retailer in the US, boasting roughly 8.3% share of the North American market and north of 33% share of offline sales in the region, per our calculations, CTA, and Euromonitor data. The firm generates the bulk of its sales in-store, with mobile phones and tablets, computers, and appliances representing its three largest categories. Recent investments in e-commerce fulfillment, accelerated by the covid-19 pandemic, have seen the US e-commerce channel roughly double from prepandemic levels, with management estimating that it will represent a mid-30% proportion of sales moving forward.

Founded in 1970, Philadelphia-based Urban Outfitters is an apparel and home goods retailer that operates more than 700 stores and e-commerce in the United States (87.5% of fiscal 2024 sales) and other regions. Its retail nameplates are Urban Outfitters, Free People, FP Movement, and Anthropologie. Retail accounted for 91% of fiscal 2024 revenue, but the firm also sells products through a wholesale operation, owns some restaurants, and operates a clothing rental and resale business called Nuuly (5% of sales). Urban Outfitters primarily markets to young adults and offers products in categories such as apparel (66% of sales), home goods (16% of sales), accessories (13% of sales), and more.

The Bureau of Economic Analysis (BEA) will update its forecast for GDP this morning. Last month, in its initial estimate, the BEA indicated that 3Q GDP grew at an annualized 2.8% pace. We expect that to hold -- though we note that from 1996 through 2022, the average revision from the advance estimate to the second estimate was plus or minus 0.5%. Key drivers behind the 3Q GDP increase included consumer spending (personal consumption expenditures), which grew at an impressive 3.7% annualized growth rate and contributed 2.46 percentage points to overall GDP expansion. Consumption of goods rose 6.0% and added 1.25 percentage points to growth. The durable goods component rebounded from a decline in 1Q, jumping 8.1% in 3Q. The big services category was solid, rising 2.6%, helped by healthcare, and contributing 1.21 points to GDP growth. Investment in equipment rose 11.1%, with contributions from transportation equipment and information processing equipment. National defense was up 14.9%, a much bigger increase than we anticipated. Residential investment was an anticipated drag on 3Q growth, declining 5.1%. With mortgage rates elevated, the category could also detract from 4Q growth. Net exports subtracted 56 basis points from GDP growth. Exports were strong, but imports (which detract from growth) were even stronger. Companies may have made purchases in anticipation of tariffs. The Atlanta Fed's GDPNow report is calling for 4Q24 growth of 2.6% based on the November 19 update. The New York Fed Staff 4Q Nowcast was 1.91% on November 22. The Weekly Economic Index, tracked by the Federal Reserve Bank of Dallas, is based on 10 daily and weekly indicators of consumer behavior, the labor market, and production. If an index value of 2% persisted for an entire quarter, the index would suggest that quarter's GDP would be 2% higher than a year ago. For the week ended November 16, the index was 1.98%, with a 13-week moving average of 2.04%. Our 4Q estimate is 2.8%.

Nordstrom is a fashion retailer that operates about 93 department stores and more than 260 off-price Nordstrom Rack stores. The company also operates both full- and off-price e-commerce sites, two clearance stores, and seven Local locations. Nordstrom’s largest merchandise categories are women’s apparel (27% of 2023 sales), shoes (26% of 2023 sales), men’s apparel (15% of 2023 sales), and beauty (13% of 2023 sales). Nordstrom, which traces its history to a shoe store opened in Seattle in 1901, continues to be partially owned and managed by members of the eponymous family.