US Retailers Eye Consumer Health Ahead of Earnings

Wall Street will gauge how shoppers are faring as Walmart and Target report earnings amid tariff policy and shifting demand.

US Consumers Face Testing Times as Retailers Prepare Earnings

Walmart Inc. and Target Corp. are slated to report earnings next week as investors weigh how US shoppers are faring in the early days of tariff policy. Consumer spending makes up about two thirds of GDP, and July retail sales rose after upward revisions for June, reinforcing a narrative of resilience in the near term.

Analysts say tariff-related price pressures could squeeze margins even as steady demand supports earnings. The upcoming results will also show how retailers manage inventories, promotions, and costs in an environment where policy shifts could tilt the buying mood and influence pricing strategies.

Policy risk hangs over the earnings cycle. Tariffs create uncertainty that can translate into higher prices and tighter budgets for households, potentially dampening momentum before the holiday season.

Still, the consumer has shown a stubborn ability to adapt. If wage growth and employment remain solid, shoppers may absorb some price increases for essentials, keeping the earnings narrative more resilient than it might appear at first glance. How retailers balance cost pressures with promotions and inventory control will shape the tone of the coming reports.

Highlights

Policy clarity in the weeks ahead will matter more to markets than a single earnings beat.