(Bloomberg) -- Better-than-expected US retail sales data and upbeat outlooks from Walmart and Target this week demonstrated the resilience of the American consumer amid hyperinflation and rising rates. Yet evolving shopping behaviors across the income spectrum, along with price markdowns from excess inventory, are contributing to the highest proportion of earnings misses for the consumer discretionary sector than elsewhere in the S&P 500 this season. Reports next week will give investors further insight into the second-half for retailers, chipmakers and software providers as the peak earnings period draws to a close.

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Monday: Zoom Video (ZM US) will report after-market. The video conferencing provider is likely to see y/y revenue growth drop into the single digits for the first time since it went public, based on the company’s own forecast and consensus estimates, as a weakening economy and broader return-to-office trends cut into sales. Efforts to drive further gains in the post-Covid era, such as boosting enterprise sales and new offerings like Phone and WhiteBoard, may not be enough to sustain growth due to rising competition from Microsoft Teams and slowing IT budgets at smaller business clients, according to Citi analysts who downgraded its shares to sell this week.

Tuesday: Dick’s Sporting Goods (DKS US) will report before market opens. Investors will look for signals on whether the largest US sports equipment and apparel retailer can maintain its pandemic-era gains as consumers shift spending to essentials amid rising prices. Cowen analysts see an opportunity for management to raise the low end of its full-year adjusted EPS outlook after they gave a wide forecast range last quarter. Fears of financial risk are emerging on the credit front as its bonds have recently traded at a wider spread than other higher-grade peers, which Bloomberg Intelligence says may put its investment-grade status in jeopardy if expectations of margin pressure stemming from its product suppliers materialize.

  • JD.com (JD US) is due premarket. Investors may watch for commentary on whether the US-traded Chinese e-commerce company might follow in Alibaba’s footsteps and upgrade its secondary listing status in Hong Kong to a dual-primary listing. Doing so will help it gain direct access to mainland Chinese investors, as tech shares have struggled to attract global investors amid regulatory concerns that have resulted in Chinese state-owned giants from PetroChina to China Life Insurance withdrawing from US exchanges entirely. For the second quarter, analysts from Citi to Barclays to Jefferies expect the company to post largely stable margins on “disciplined” cost control. That’s even as y/y revenue growth in the period is expected to shrink to a record low due to weak Chinese shopping sentiment amid Covid lockdowns and economic uncertainty.

Wednesday: Salesforce (CRM US) reports after the closing bell. The second-quarter current remaining performance obligations growth — a closely watched indicator of near-term demand — may top the consensus estimate of 18%, Bloomberg Intelligence says, thanks to steady cloud spending. Yet, even as enterprise IT spending holds up well, macroeconomic uncertainty could slow gains in the marketing and commerce software segment, which is projected to post the slowest year-on-year revenue growth in at least seven years. 

  • ESG in focus: Investors will be on the lookout for an update on Salesforce’s Sustainability Cloud offering, particularly its carbon accounting tools in light of the US SEC’s proposed climate and greenhouse gas reporting requirements, according to Bloomberg Intelligence Senior ESG Analyst Rob Du Boff. “We talk a lot about the ESG risks and costs, but this is a clear case of a company with a huge business opportunity from ESG,” he adds.
  • Also Wednesday, Nvidia (NVDA US) will discuss its outlook on its earnings call after the closing bell. The maker of graphic chips that are a staple of high-end gaming computers earlier this month reported preliminary second-quarter revenue that fell short of expectations, as a slowdown in the gaming industry hurt top-line growth.

Thursday: Peloton (PTON US) is due before the bell. The fitness company has in past weeks taken drastic steps to trim costs, ranging from job cuts to price hikes to store closures, as well as suspending in-house production of its bikes and redesigning them for self-assembly. Analysts including Bloomberg Intelligence will now turn their attention to the fourth-quarter results, in addition to management’s free cash flow guidance. Consensus estimates are projecting a 27% year-on-year contraction in revenue -- the steepest since Peloton shares began trading -- and the slowest sequential growth in Connected Fitness subscribers, anticipating a mere 22,000 additions from the prior quarter. 

  • Gap (GPS US) will report after market close. The owner of the Old Navy and Banana Republic brands suffered a series of price target cuts from Wall Street analysts after ousting its CEO and warning investors of the negative impact from aggressive markdowns on its gross margin. The metric is now projected to come in at 36%, down from 43.3% a year ago, according to Bloomberg Consensus. Having trimmed its full-year earnings outlook in the last report, the apparel retailer could once again revise it as consensus estimate points to a median adjusted EPS of $0.11, well below its last-issued guidance of $0.30-$0.60. Operational challenges, on top of macro pressure, are threatening Gap’s results, Wells Fargo analysts say, adding that fundamentals are deteriorating far worse than anticipated.

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