(Bloomberg) -- Holiday spending over the Thanksgiving break re-instilled some confidence in American consumers’ ability to support the economy, as shoppers took advantage of steep discounts offered by retailers to clear an inventory glut. Yet, the pressure to manage costs is likely to continue given an uncertain economic picture, with companies in tech and media to banks planning job cuts and a slowdown in hiring, driving November layoff announcements to a 417% year-over-year increase, even as Friday’s payrolls report showed unemployment held steady. Salesforce was the latest to warn of weaker prospects this week and Kroger’s moderate comp-sales forecast revision failed to lift hopes for a recovery next year. Investors will look to Costco earnings next week for nuances in spending behavior by value-seeking shoppers after its November sales growth slowed to the lowest since April 2020.

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Earnings highlights to look for next week: 

Monday: Gitlab (GTLB US) is due after market. The software development platform that went public last year is estimated to post record revenue in the fiscal third quarter, which Bloomberg Intelligence attributes to growth in DevOps platform adoption. BI Senior Industry Analyst Sunil Rajgopal sees Gitlab inching toward $1 billion in revenue by fiscal 2027 -- more than double the $413.3 million analysts expect the company to report this year. Yet product growth, other expansion initiatives and heavy R&D spending will continue to pressure operating margin, meaning it could take longer for the company to turn a profit. 

Tuesday: Toll Brothers (TOL US) is due after market close. The luxury home builder is projected to see order volumes decline y/y for a third straight quarter as its customer base “faces headwinds related to declining equity markets and mortgage-rate lock-in effect,” deterring current homeowners from trading up, according to BI. Revenue growth continues to slow this reporting period, and analysts currently expect it to slip into a year-over-year decline in the following quarter as demand deteriorates.  

Wednesday: Campbell Soup (CPB US) reports before the opening bell. Organic growth at the packaged-food maker for the fiscal first quarter is set to reach the high-single digit range, its biggest expansion in at least two years. Pricing actions and elevated consumption likely helped fuel the growth, Deutsche Bank analysts wrote, though supply and inflation pressure overshadowing the last report could cut into growth. Nevertheless, they expect management to “comfortably reaffirm” the full-year guidance, which calls for organic growth of 4%-6% and adjusted EPS within the $2.85-$2.95 range. 

Thursday: Costco (COST US) will post first-quarter results postmarket, following a recent miss in November same-store sales. Bloomberg Intelligence analysts still see a solid setup for the upcoming report, citing strong supply-chain management and merchandising. While Costco could benefit from shoppers seeking value amidst decades-high inflation, says BI, consensus estimates compiled by Bloomberg shows total same-store sales excluding fuel is expected to expand at the slowest pace in three years. Bottom-line growth could also lose steam, with consensus calling for the smallest gains in almost two years. 

• Lululemon (LULU US) is due after the closing bell. The inflation-defying demand for pricey activewear bodes well for the Vancouver-based label, as Bloomberg consensus suggests that revenue and adjusted EPS for the third quarter could narrowly exceed the company’s own guidance. Cowen analysts attribute the momentum to the brand’s strong pricing power and upbeat digital-traffic data, while Bloomberg Intelligence sees benefits from an earlier launch of footwear and the faster store expansion. On the earnings call later that afternoon, investors will be on the lookout for early clues on holiday trends and the effect of inflation on consumer spending.
• ESG in Focus: Vail Resorts (MTN US), reporting its first-quarter results post-market, will be hoping to avoid labor shortages that plagued some of its North American ski resorts last holiday season. In order to address the shortfall of workers that led to long wait times and other guest experience issues, the company announced increases to salaries and benefits in March of this year, although Vail has struggled to build affordable housing for its seasonal labor due to environmental concerns in Colorado. Labor expenses made up about 28% of what it cost the company to operate its mountain resorts last quarter, according to Bloomberg data, the highest proportion of any outlay. This quarter, analysts are forecasting the wage bill to reach around $101 million, the highest on record for the fiscal period ending Oct. 31. Still, Chief Operating Officer Kirsten Lynch said last month that she “feels good about” staffing levels this season, and does not expect to be overstaffed ahead of this winter.

--With assistance from Redd Brown.

©2022 Bloomberg L.P.