Morgan Stanley on the lookout for signs of | Australian Markets
Morgan Stanley analysts will look for signs of a broader client restoration during the August earnings season, noting charge cuts have helped ease cost-of-living pressures however the influence on spending had up to now been reasonable.
In a analysis be aware to shoppers in a single day Tuesday, the investment bank indicated it might keep an eye on retailers’ gross sales and margin trajectories for the 2026 financial 12 months.
The analysts famous whereas the client outlook was more “constructive”, a number of retailers have referred to as out incremental weak point and softer trading situations. They embrace Accent Group, Myer, Super Retail Group, Bapcor, KMD Brands and Adairs.
Category trends are additionally in focus for the upcoming earnings season, with weak point in attire and alcohol in contrast with growth in electronics.
Morgan Stanley has an “overweight” ranking on Sigma Healthcare versus an “equal weight” ranking on Endeavour Group — proprietor of Dan Murphy’s and BWS — as customers continued to prioritise health and wellness.
“Decline in traditional quick-service restaurant performance and alcohol consumption is increasingly appearing more structural than cyclical as consumer preferences shift toward healthier options,” it stated.
Morgan Stanley says whereas family incomes will improve by means of 2025 and 2026, it expects a cautious response from spending.
It added circulation by means of from further charge cuts was required earlier than there was significant turnaround in client sentiment.
Electronics giant JB Hi-Fi — additionally behind The Good Guys — will kick off the first full week of earnings season when it stories 2025 financial 12 months outcomes on August 11.
The final week of August is shaping up to be jam-packed, with Endeavour, Coles, Woolworths, Domino’s Pizza, Wesfarmers and Harvey Norman amongst the main retailers reporting.
It comes as National Australia Bank on Wednesday revealed online retail gross sales grew 2.6 per cent month-on-month in June.
All States recorded growth in June, with a sturdy rebound for South Australia, WA and Tasmania — all of which posted a drop in May.
The bank estimates in the 12 months to June, Australians spent simply over $64 billion on online retail.
The Australian Bureau of Statistics will release retail trade knowledge for June on Thursday.
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