Retail Earnings Roundup
July 2026
Retail Earnings Roundup
The Leaders Keep Pulling Away
If there was one clear takeaway from the latest earnings season, it is that retail’s biggest winners are becoming even more difficult to catch.
Across grocery, mass merchandise, restaurants, specialty retail, apparel, and technology, the companies delivering the strongest results all have one thing in common: they have evolved beyond simply selling products. Today’s market leaders are building ecosystems powered by data, memberships, digital engagement, AI, and operational excellence.
Here are the biggest themes shaping retail based on the latest earnings reports.
The Mass Merchants Continue to Win
Walmart, Amazon, Costco, and Kroger all delivered strong results, but they did so in very different ways.
Amazon once again demonstrated why it remains the most formidable retailer in the world. Retail operations continue becoming more efficient, advertising is evolving into a profit engine, AWS continues funding aggressive innovation, and AI investments are beginning to reshape every part of the business. Faster delivery, automation, and marketplace expansion continue widening the gap between Amazon and nearly everyone else.
Walmart is quietly executing a similar playbook. While grocery remains its traffic driver, much of its future profitability is coming from marketplace services, advertising, Walmart+, fulfillment services, and AI-enabled operations. The retailer continues attracting higher income households while maintaining its value leadership.
Costco remains one of retail’s most consistent performers. Membership renewal rates remain near historic highs, warehouse traffic continues increasing, and digital sales are accelerating without sacrificing profitability. Few retailers possess the customer loyalty Costco enjoys today.
Kroger continues proving that modern grocery is about much more than food. Digital fulfillment, retail media, pharmacy, and data-driven personalization are becoming increasingly important contributors to long-term earnings growth.
Albertsons continues executing well operationally, although competitive pricing pressure from Walmart, Costco, and Kroger remains intense. Digital engagement and pharmacy continue providing important avenues for growth.
Sprouts Farmers Market remains one of grocery’s fastest-growing concepts. Its differentiated focus on fresh, healthy, and specialty products continues attracting consumers even as discretionary spending becomes more selective.
Specialty Retail Rewards Operational Excellence
Several specialty retailers demonstrated that disciplined execution still matters.
TJX Companies and Ross Stores continue benefiting as consumers search for value without sacrificing quality. The off-price model remains remarkably resilient during periods of economic uncertainty.
Ulta Beauty showed that beauty remains one of retail’s healthiest categories despite moderating growth. A massive loyalty program, strong vendor partnerships, and omnichannel execution continue driving consistent performance.
Target continues facing a more challenging environment than many of its peers. While digital capabilities remain strong, discretionary merchandise demand and margin pressure continue weighing on results. The company remains focused on restoring profitable growth through merchandising improvements and operational discipline.
Five Below continues expanding rapidly despite softer discretionary spending. Store expansion remains the company’s largest long-term growth engine.
Best Buy continues navigating a slower consumer electronics replacement cycle while positioning itself for renewed demand driven by AI-enabled PCs, connected home devices, and premium consumer technology.
Home Improvement Remains Stable
The Home Depot and Lowe’s continue operating in a difficult housing market where elevated interest rates have slowed larger renovation projects.
Despite those headwinds, both companies continue benefiting from professional contractor demand, supply chain improvements, and disciplined cost management. Investors appear increasingly optimistic that both retailers are well positioned once housing activity begins recovering.
Apparel Brands Are Taking Different Paths
Nike continues working through one of the most significant strategic resets in its recent history. Management has renewed its focus on wholesale partnerships, product innovation, and rebuilding market share after several difficult quarters.
Adidas, meanwhile, has quietly engineered one of retail’s strongest turnarounds. Product innovation, improved inventory management, and strengthening retailer relationships have restored growth across nearly every geography.
Lululemon continues separating itself from much of the apparel industry through premium positioning, strong international expansion, and growing men’s categories. While North American growth has moderated, global demand remains healthy.
Restaurants Continue Favoring Strong Brands
Consumers continue dining out, but they are becoming increasingly selective.
McDonald’s demonstrated once again that value, convenience, and digital engagement remain powerful competitive advantages. Global loyalty membership and digital ordering continue strengthening customer retention.
Yum! Brands continues benefiting from Taco Bell’s momentum while leveraging its global franchise network to drive consistent earnings growth.
Restaurant Brands International remains one of the industry’s most efficient franchise operators, with international expansion providing a significant runway for future growth.
Chipotle appears to have stabilized following a period of softer traffic. The company continues emphasizing premium positioning while maintaining industry-leading restaurant economics.
CAVA continues emerging as one of the restaurant industry’s brightest growth stories. Strong comparable sales, expanding margins, and disciplined new restaurant development continue setting the company apart.
Shake Shack remains in growth mode as it expands both domestically and internationally while continuing to invest in digital ordering and restaurant technology.
Darden Restaurants continues demonstrating why operational consistency wins over time. Olive Garden and LongHorn Steakhouse continue producing dependable results through disciplined execution and effective cost management.
Wendy’s continues competing effectively in an increasingly value-oriented quick service environment by balancing promotional activity with franchise profitability.
Starbucks remains in the middle of a long-term transformation focused on improving store operations, labor investments, and customer experience. While margins remain under pressure, management is clearly prioritizing long-term brand health over short-term profitability.
Domino’s Pizza continues proving that digital leadership and franchise economics remain a winning combination. International expansion and operational efficiency continue supporting steady growth.
Technology Is Becoming Retail’s Biggest Competitive Advantage
Although NVIDIA, Microsoft, and Apple are not retailers, they may have had the biggest influence on retail’s future.
Microsoft continues leading enterprise AI adoption through Azure, Copilot, and Dynamics 365, technologies that retailers increasingly rely upon for forecasting, workforce management, and customer engagement.
NVIDIA remains the infrastructure provider powering the AI revolution. From computer vision and autonomous checkout to demand forecasting and robotics, many of retail’s most innovative technologies now depend on NVIDIA’s AI ecosystem.
Apple continues influencing retail through its expanding services business, AI integration, and one of the world’s most productive physical store networks. As consumer expectations evolve, Apple’s approach to customer experience continues serving as a benchmark for retailers everywhere.
Final Thoughts
This earnings season reinforced a trend that has become increasingly clear over the past several years.
The companies producing the strongest financial results are no longer winning because they simply sell more products. They are winning because they have built integrated ecosystems around their customers.
Membership programs create loyalty. Digital platforms increase engagement. AI improves productivity. Retail media generates high-margin revenue. Supply chain automation improves execution. Data enables personalization at scale.
These capabilities are becoming the new competitive advantages.
For retailers still relying primarily on merchandising and promotions, the gap continues to widen.
The next era of retail belongs to organizations that combine operational excellence with technology, data, and customer obsession. Based on this quarter’s results, the leaders are already well on their way.
Company Earnings Detail
Restaurants
CAVA Group (NYSE: CAVA)
Quarter Ended: April 19, 2026 (Fiscal Q1 2026)
Revenue: Approximately $351 million
Net Income: Approximately $37 million
Performance
CAVA continued to outperform the restaurant industry with another quarter of strong comparable sales growth, expanding restaurant margins, and rapid unit expansion. Traffic remained positive despite ongoing consumer spending pressure.
Key Drivers
• Revenue increased approximately 28% year over year.
• Comparable restaurant sales increased approximately 10%.
• Restaurant-level profit margins remained above 25%.
• Continued new restaurant openings across existing and new markets.
• Strong loyalty program engagement and digital ordering growth.
Expected Next Earnings Report: Late August 2026.
This Week in Retail Perspective
CAVA remains one of the fastest-growing restaurant concepts in North America. Unlike many emerging restaurant brands, it is delivering strong traffic growth alongside expanding profitability. The combination of disciplined expansion and increasing brand awareness positions CAVA as one of the industry’s premier long-term growth stories.
Darden Restaurants (NYSE: DRI)
Quarter Ended: May 31, 2026 (Fiscal Q4 2026)
Revenue: Approximately $3.35 billion
Net Income: Approximately $335 million
Performance
Darden delivered another solid quarter driven by Olive Garden and LongHorn Steakhouse. Comparable restaurant sales improved sequentially while margins remained resilient despite labor inflation.
Key Drivers
• Positive same-restaurant sales across most brands.
• Continued guest traffic improvement.
• Strong execution on pricing and cost management.
• New restaurant development.
• Consistent dividend growth and share repurchases.
Expected Next Earnings Report: September 2026.
This Week in Retail Perspective
Darden continues demonstrating why it is considered one of the industry’s best operators. Scale, disciplined capital allocation, and diversified restaurant brands provide stability even during uneven consumer spending environments.
Shake Shack (NYSE: SHAK)
Quarter Ended: April 1, 2026 (Fiscal Q1 2026)
Revenue: Approximately $351 million
Net Income: Approximately $8 million
Performance
Shake Shack posted healthy revenue growth supported by new restaurant openings and continued digital engagement. Comparable sales remained positive while management continued investing in long-term unit expansion.
Key Drivers
• Double-digit revenue growth.
• Positive comparable sales.
• Company-operated restaurant expansion.
• Continued kiosk and digital ordering adoption.
• Higher average unit volumes.
Expected Next Earnings Report: Early August 2026.
This Week in Retail Perspective
Shake Shack continues transitioning from a regional premium burger chain into a global growth brand. Restaurant economics remain attractive, although margin expansion is likely to remain gradual as the company prioritizes new unit growth.
Sources
CAVA Group Investor Relations, Fiscal Q1 2026 Earnings Release.
Darden Restaurants Investor Relations, Fiscal Q4 2026 Earnings Release.
Shake Shack Investor Relations, Fiscal Q1 2026 Earnings Release.
Technology
Apple (NASDAQ: AAPL)
Quarter Ended: March 28, 2026 (Fiscal Q2 2026)
Revenue: Approximately $95.4 billion
Net Income: Approximately $24.8 billion
Performance
Apple exceeded expectations driven by stronger iPhone demand and continued Services growth. Gross margins remained near record levels while the company continued returning significant capital to shareholders.
Key Drivers
• iPhone revenue returned to growth.
• Services revenue reached another record.
• Installed device base continued expanding.
• Continued share repurchases.
• AI capabilities expanded across the Apple ecosystem.
Expected Next Earnings Report: Late July 2026.
This Week in Retail Perspective
Apple remains one of retail’s most influential consumer brands. While hardware replacement cycles have moderated, Services, wearables, and AI-enabled software continue supporting long-term profitability. Apple Stores also remain among the most productive retail locations globally.
Microsoft (NASDAQ: MSFT)
Quarter Ended: March 31, 2026 (Fiscal Q3 2026)
Revenue: Approximately $70.1 billion
Net Income: Approximately $26.0 billion
Performance
Microsoft reported another exceptional quarter as Azure cloud growth accelerated and AI adoption continued driving enterprise spending. Operating margins remained among the highest in the technology sector.
Key Drivers
• Azure revenue growth exceeded 30%.
• Microsoft 365 continued strong commercial adoption.
• Copilot AI subscriptions expanded rapidly.
• Record cloud backlog.
• Continued enterprise AI infrastructure investments.
Expected Next Earnings Report: Late July 2026.
This Week in Retail Perspective
Microsoft continues benefiting from one of the largest AI investment cycles in history. Retailers increasingly rely on Azure, Copilot, Dynamics 365, and AI analytics, making Microsoft a foundational technology provider for modern commerce.
NVIDIA (NASDAQ: NVDA)
Quarter Ended: April 26, 2026 (Fiscal Q1 2027)
Revenue: Approximately $44.1 billion
Net Income: Approximately $24.6 billion
Performance
NVIDIA once again delivered extraordinary growth as demand for AI infrastructure significantly exceeded supply. Data Center revenue remained the dominant contributor while networking and enterprise AI solutions continued expanding rapidly.
Key Drivers
• Data Center revenue grew more than 70%.
• Blackwell AI platform production ramped successfully.
• Enterprise AI deployments accelerated.
• Continued hyperscaler investment.
• Strong software ecosystem adoption.
Expected Next Earnings Report: Late August 2026.
This Week in Retail Perspective
Although not a retailer, NVIDIA remains one of the most important companies influencing retail technology. AI-powered demand forecasting, computer vision, pricing optimization, autonomous stores, and robotics increasingly depend on NVIDIA’s hardware and software ecosystem.
Sources
Apple Investor Relations, Fiscal Q2 2026 Earnings Release and Form 10-Q.
Microsoft Investor Relations, Fiscal Q3 2026 Earnings Release and Form 10-Q.
NVIDIA Investor Relations, Fiscal Q1 2027 Earnings Release and Form 10-Q.
Apparel & Specialty Retail
Adidas AG (OTC: ADDYY)
Quarter Ended: March 31, 2026 (Q1 2026)
Revenue: Approximately €6.4 billion
Net Income: Approximately €430 million
Performance
Adidas continued its turnaround with broad-based sales growth across nearly every region. Wholesale demand strengthened while direct-to-consumer channels remained a significant growth driver.
Key Drivers
• Double-digit currency-neutral sales growth.
• Strong footwear momentum.
• Improved gross margins.
• Continued brand heat through lifestyle and performance products.
• North America returned to growth.
Expected Next Earnings Report: Late July 2026.
This Week in Retail Perspective
Adidas has successfully moved beyond its Yeezy-related challenges. Product innovation, stronger retailer partnerships, and disciplined inventory management have positioned the company for sustained profitable growth.
Lululemon Athletica (NASDAQ: LULU)
Quarter Ended: May 3, 2026 (Fiscal Q1 2026)
Revenue: Approximately $2.42 billion
Net Income: Approximately $330 million
Performance
Lululemon delivered another quarter of revenue growth led by international markets and men’s apparel. Comparable sales remained positive despite moderating consumer demand in North America.
Key Drivers
• International revenue increased more than 20%.
• Continued expansion in China.
• Men’s business outpaced overall company growth.
• Healthy inventory position.
• Gross margins remained resilient.
Expected Next Earnings Report: Early September 2026.
This Week in Retail Perspective
Lululemon remains one of the strongest premium apparel brands globally. International expansion, category diversification, and pricing power continue supporting above-average profitability despite a more promotional apparel environment.
Nike (NYSE: NKE)
Quarter Ended: May 31, 2026 (Fiscal Q4 2026)
Revenue: Approximately $11.4 billion
Net Income: Approximately $520 million
Performance
Nike continued executing its turnaround strategy while clearing older inventory and rebuilding wholesale partnerships. Revenue remained pressured but sequential improvements were evident across several regions.
Key Drivers
• Improved wholesale relationships.
• Inventory normalization.
• Continued innovation pipeline.
• Strong digital ecosystem.
• Recovery in North America began stabilizing.
Expected Next Earnings Report: Late September 2026.
This Week in Retail Perspective
Nike remains in the early stages of a multi-quarter recovery. The renewed emphasis on wholesale partnerships and product innovation should improve market share over time, although near-term profitability is likely to remain below historical levels.
Ulta Beauty (NASDAQ: ULTA)
Quarter Ended: May 2, 2026 (Fiscal Q1 2026)
Revenue: Approximately $2.9 billion
Net Income: Approximately $310 million
Performance
Ulta delivered better-than-expected results despite slowing beauty category growth. Loyalty membership continued expanding while prestige cosmetics remained relatively resilient.
Key Drivers
• Comparable sales returned to modest growth.
• Loyalty membership exceeded 46 million members.
• Continued partnership expansion with Target.
• Strong skincare performance.
• Disciplined inventory management.
Expected Next Earnings Report: Late August 2026.
This Week in Retail Perspective
While beauty spending has normalized after several years of exceptional growth, Ulta remains one of specialty retail’s strongest operators. Its loyalty ecosystem, vendor partnerships, and omnichannel capabilities continue differentiating the company from competitors.
Sources
Adidas AG Investor Relations, Q1 2026 Financial Results.
Lululemon Athletica Investor Relations, Fiscal Q1 2026 Earnings Release.
Nike Investor Relations, Fiscal Q4 2026 Earnings Release and Form 10-K.
Ulta Beauty Investor Relations, Fiscal Q1 2026 Earnings Release.
Grocery
Albertsons (NYSE: ACI)
Quarter Ended: May 30, 2026 (Fiscal Q1 2026)
Revenue: $24.9 billion
Net Income: Approximately $236 million
Performance
Albertsons delivered modest revenue growth driven by pharmacy, digital, and loyalty engagement. Identical sales remained positive despite continued grocery inflation normalization, while gross margins remained under pressure from ongoing investments in pricing and customer value.
Key Drivers
• Identical sales growth remained positive.
• Digital sales continued double-digit growth.
• Pharmacy and health services outperformed center store categories.
• Continued expansion of personalized promotions through Albertsons’ loyalty platform.
• Ongoing productivity initiatives helped offset labor and supply chain costs.
Expected Next Earnings Report: Early October 2026.
This Week in Retail Perspective
Albertsons continues executing well operationally but faces increasing competitive pressure from Walmart, Costco, and Kroger. Digital engagement and pharmacy remain important growth engines, while private label expansion and operational efficiency will be critical to protecting margins as food inflation moderates.
Sprouts Farmers Market (NASDAQ: SFM)
Quarter Ended: March 29, 2026 (Q1 2026)
Revenue: $2.3 billion
Net Income: Approximately $169 million
Performance
Sprouts reported solid revenue growth despite softer comparable sales as consumers remained selective on discretionary natural and organic purchases. The company continued opening new stores while maintaining strong cash generation and profitability.
Key Drivers
• Net sales increased 4%.
• Comparable sales declined 1.7%.
• Six new stores opened.
• Continued investment in fresh offerings and differentiated merchandising.
• Strong balance sheet and ongoing share repurchases.
Expected Next Earnings Report: July 29, 2026.
This Week in Retail Perspective
Sprouts remains one of grocery’s most differentiated growth stories. While comparable sales softened following several years of exceptional growth, the company’s unique positioning around fresh, healthy, and specialty foods continues supporting long-term expansion. Store growth remains one of the strongest in food retail.
Tesco PLC (OTC: TSCDY)
Quarter Ended: May 30, 2026 (Fiscal Q1 2026 Trading Update)
Revenue: Group sales (excluding VAT and fuel) increased 5.5% year over year.
Net Income: Not reported during first-quarter trading updates.
Performance
Tesco continued gaining market share across the UK while maintaining its price leadership strategy. Strong Clubcard engagement and growth across convenience formats helped offset ongoing competitive pricing pressures.
Key Drivers
• UK comparable sales increased.
• Continued market share gains.
• Strong Clubcard loyalty participation.
• Convenience and online grocery remained growth contributors.
• Pricing investments maintained customer traffic.
Expected Next Earnings Report: October 2026 (First Half Results).
This Week in Retail Perspective
Tesco continues outperforming most European grocers through disciplined pricing, scale advantages, and loyalty-driven personalization. The company remains well positioned despite an increasingly competitive UK grocery landscape.
Restaurants
Chipotle Mexican Grill (NYSE: CMG)
Quarter Ended: March 31, 2026 (Q1 2026)
Revenue: Approximately $3.09 billion
Net Income: Approximately $390 million
Performance
Chipotle returned to positive transaction growth after several challenging quarters. Digital sales remained a major contributor while management continued resisting broad discounting in favor of preserving premium brand positioning.
Key Drivers
• Revenue increased roughly 7%.
• Transactions returned to positive growth.
• Digital sales approached 39% of total sales.
• Continued restaurant expansion.
• Menu innovation supported customer traffic.
Expected Next Earnings Report: Late July 2026.
This Week in Retail Perspective
Chipotle appears to be stabilizing after consumer spending pressures impacted traffic during 2025. The company’s disciplined pricing strategy and industry-leading restaurant economics continue supporting long-term earnings growth despite near-term margin pressure.
Domino’s Pizza (NASDAQ: DPZ)
Quarter Ended: March 22, 2026 (Q1 2026)
Revenue: Approximately $1.16 billion
Net Income: Approximately $154 million
Performance
Domino’s delivered another steady quarter supported by international expansion, franchise economics, and digital ordering leadership. U.S. comparable sales remained modestly positive while international markets continued driving unit growth.
Key Drivers
• Continued international store expansion.
• Strong franchise profitability.
• Digital ordering remained above 85% of U.S. sales.
• Delivery and loyalty programs supported customer retention.
Expected Next Earnings Report: Late July 2026.
This Week in Retail Perspective
Domino’s remains one of the restaurant industry’s most operationally efficient brands. Digital leadership, franchise scalability, and international growth continue producing consistent shareholder returns despite a highly competitive QSR environment.
McDonald’s (NYSE: MCD)
Quarter Ended: March 31, 2026 (Q1 2026)
Revenue: Approximately $6.2 billion
Net Income: Approximately $2.0 billion
Performance
McDonald’s exceeded expectations with strong global comparable sales growth and continued expansion of its loyalty ecosystem. International markets remained particularly strong while U.S. performance improved.
Key Drivers
• Global comparable sales increased 3.8%.
• Global systemwide sales increased 6% in constant currency.
• Loyalty members generated more than $9 billion in quarterly sales.
• Continued digital ordering growth.
• Menu innovation and value offerings supported traffic.
Expected Next Earnings Report: Early August 2026.
This Week in Retail Perspective
McDonald’s continues proving the resilience of its global operating model. Its combination of value messaging, digital engagement, and franchise economics provides a durable competitive advantage even during periods of softer consumer spending.
Restaurant Brands International (NYSE: QSR)
Quarter Ended: March 31, 2026 (Q1 2026)
Revenue: Approximately $2.2 billion
Net Income: Approximately $230 million
Performance
Restaurant Brands reported continued growth across Burger King, Tim Hortons, Popeyes, and Firehouse Subs. International development remained a significant contributor while franchise royalty revenues remained healthy.
Key Drivers
• Continued global restaurant expansion.
• Growth in systemwide sales.
• Strong international development pipeline.
• Digital ordering and loyalty initiatives expanded across brands.
Expected Next Earnings Report: Early August 2026.
This Week in Retail Perspective
Restaurant Brands continues benefiting from its highly franchised business model, which produces consistent cash flow with relatively limited capital requirements. International growth remains the company’s largest long-term opportunity.
Starbucks (NASDAQ: SBUX)
Quarter Ended: March 29, 2026 (Fiscal Q2 2026)
Revenue: Approximately $8.8 billion
Net Income: Approximately $770 million
Performance
Starbucks continued executing its turnaround strategy focused on improving store operations, labor investments, and customer experience. Comparable sales remained challenged but sequential trends improved.
Key Drivers
• Improving operational execution.
• Continued mobile order and loyalty engagement.
• Store modernization initiatives.
• Investments in labor and service quality.
• International expansion led by China.
Expected Next Earnings Report: Late July 2026.
This Week in Retail Perspective
Starbucks remains in the middle of a multi-quarter transformation. Near-term margins remain under pressure as management prioritizes customer experience over profitability, but these investments should strengthen long-term brand health and customer loyalty.
Wendy’s (NASDAQ: WEN)
Quarter Ended: March 29, 2026 (Q1 2026)
Revenue: Approximately $540 million
Net Income: Approximately $40 million
Performance
Wendy’s delivered stable results despite industry-wide consumer spending pressure. Value promotions helped maintain traffic while franchise profitability remained relatively healthy.
Key Drivers
• Continued breakfast expansion.
• Digital ordering growth.
• Franchise development.
• Value menu promotions supported guest counts.
Expected Next Earnings Report: Early August 2026.
This Week in Retail Perspective
Wendy’s continues competing effectively in value-focused quick service dining. While consumer demand remains mixed, its franchise model and balanced pricing strategy provide flexibility in a competitive environment.
Yum! Brands (NYSE: YUM)
Quarter Ended: March 31, 2026 (Q1 2026)
Revenue: Approximately $1.85 billion
Net Income: Approximately $330 million
Performance
Yum! delivered another solid quarter led by Taco Bell’s continued strength and international unit expansion across KFC and Pizza Hut. Digital sales remained a major contributor across all brands.
Key Drivers
• Continued global restaurant development.
• Strong Taco Bell comparable sales.
• Digital ordering continued expanding.
• Franchise model generated consistent royalty income.
• International markets remained the largest growth engine.
Expected Next Earnings Report: Late July 2026.
This Week in Retail Perspective
Yum! continues distinguishing itself through global scale and franchise economics. Taco Bell remains one of the strongest performers in quick service, while international expansion provides a long runway for sustainable earnings growth.
Sources
Albertsons Investor Relations, Fiscal Q1 2026 Earnings Release and SEC Form 10-Q.
Sprouts Farmers Market Investor Relations, Q1 2026 Earnings Release and Investor Presentation.
Tesco PLC Q1 Fiscal 2026/27 Trading Update and Investor Relations.
Chipotle Mexican Grill Investor Relations, Q1 2026 Earnings Release.
Domino’s Pizza Investor Relations, Q1 2026 Earnings Release.
McDonald’s Investor Relations, Q1 2026 Earnings Release.
Restaurant Brands International Investor Relations, Q1 2026 Earnings Release.
Starbucks Investor Relations, Fiscal Q2 2026 Earnings Release.
Wendy’s Investor Relations, Q1 2026 Earnings Release.
Yum! Brands Investor Relations, Q1 2026 Earnings Release.
Grocery & Mass Merchandise
Amazon (NASDAQ: AMZN)
Quarter Ended: March 31, 2026 (Q1 2026)
Revenue: $181.5 billion, up 17% year over year.
Net Income: $30.3 billion, compared with $17.1 billion a year earlier.
Performance
Amazon significantly exceeded expectations with broad-based growth across Retail, AWS, Advertising, and third-party marketplace services. North America retail continued gaining share while AWS accelerated to its fastest growth rate in nearly four years. Operating income reached a record for the quarter, although results included a sizeable unrealized gain from Amazon’s investment in Anthropic.
Key Drivers
• North America sales increased 12%.
• International sales increased 19%.
• AWS revenue grew 28%.
• Advertising business exceeded a $70 billion annual revenue run rate.
• Retail unit growth reached 15%, the strongest since the pandemic.
• Continued investment in AI infrastructure and fulfillment automation.
Expected Next Earnings Report: Late July or early August 2026.
This Week in Retail Perspective
Amazon continues widening its competitive moat. While AWS and AI investments generate much of the profit, the retail business is quietly becoming more efficient through automation, regionalized fulfillment, and faster delivery. Advertising and marketplace services continue expanding margins, allowing Amazon to invest aggressively without sacrificing profitability. Retail competitors should expect continued pricing pressure alongside increasing consumer expectations around convenience and fulfillment.
Costco Wholesale (NASDAQ: COST)
Quarter Ended: May 10, 2026 (Fiscal Q3 2026)
Revenue: $69.15 billion, up 11.6% year over year.
Net Income: $2.19 billion, compared with $1.90 billion last year.
Performance
Costco once again delivered one of the strongest performances in retail. Comparable sales remained robust globally while digital sales continued growing at more than 20%. Membership renewal rates remained exceptionally high and traffic continued increasing despite ongoing economic uncertainty.
Key Drivers
• Comparable sales increased 9.8% (6.6% excluding fuel and FX).
• E-commerce sales increased over 21%.
• Continued warehouse expansion.
• Strong international performance.
• Higher membership income and increasing member loyalty.
Expected Next Earnings Report: Late September 2026.
This Week in Retail Perspective
Costco continues demonstrating why its membership model remains among retail’s strongest competitive advantages. Traffic growth, exceptional renewal rates, and disciplined pricing create a durable growth engine. Unlike many retailers, Costco is growing both transactions and average ticket without relying heavily on promotions, reflecting continued consumer trust in its value proposition.
Kroger (NYSE: KR)
Quarter Ended: May 23, 2026 (Q1 2026)
Revenue: $45.12 billion
Net Income: $866 million
Performance
Kroger delivered a steady quarter despite continued grocery deflation in several categories. Identical sales excluding fuel returned to positive growth, while digital operations remained a bright spot with strong e-commerce momentum and continued profitability improvements.
Key Drivers
• Identical sales excluding fuel increased 1.0%.
• Digital sales increased 19%.
• Kroger Precision Marketing profit increased more than 20%.
• Strong pharmacy and fresh food performance.
• Continued focus on productivity and cost discipline.
Expected Next Earnings Report: September 2026.
This Week in Retail Perspective
Kroger is increasingly becoming a technology-enabled grocer rather than simply a supermarket chain. Retail media, pharmacy, and digital fulfillment continue diversifying earnings beyond traditional grocery margins. While food inflation has moderated, Kroger’s operational execution remains among the strongest in the grocery sector.
Walmart (NYSE: WMT)
Quarter Ended: April 30, 2026 (Fiscal Q1 2027)
Revenue: $177.4 billion (Net sales: $175.8 billion)
Net Income: $4.49 billion
Performance
Walmart delivered another strong quarter with revenue growth exceeding 7% despite ongoing macroeconomic uncertainty. E-commerce remained a major growth engine while advertising, marketplace, and membership businesses continued expanding faster than core retail operations. Management maintained a cautious outlook due to tariff and cost uncertainties, which tempered investor enthusiasm despite strong operating performance.
Key Drivers
• Total revenue increased 7.3%.
• U.S. e-commerce sales increased 22%.
• Global advertising business continued double-digit growth.
• Marketplace and Walmart+ membership expanded.
• Strong grocery market share gains among higher-income consumers.
• Continued AI investments and supply chain automation.
Expected Next Earnings Report: Approximately August 20, 2026.
This Week in Retail Perspective
Walmart continues separating itself from traditional big-box competitors by evolving into a diversified commerce platform. While grocery remains its traffic driver, profitability increasingly comes from higher-margin businesses including advertising, marketplace services, fulfillment, and memberships. Walmart’s ability to attract higher-income shoppers while maintaining its value positioning remains one of the most important competitive trends across U.S. retail.
Sources
Amazon Investor Relations, Q1 2026 Earnings Release.
Costco Wholesale Investor Relations, Fiscal Q3 2026 Earnings Release.
Kroger Investor Relations, Q1 2026 Earnings Release.
Walmart Investor Relations, FY27 Q1 Earnings Release and Presentation.
Earnings Performance Snapshot
A quick-reference summary of how each company performed this earnings season, listed alphabetically.
Adidas: Continued turnaround with broad-based sales growth, stronger wholesale demand, improved margins, and continued momentum across key markets.
Albertsons: Delivered modest revenue growth supported by pharmacy, digital sales, and loyalty engagement despite ongoing pricing pressure.
Amazon: Significantly exceeded expectations with strong growth across retail, AWS, advertising, and marketplace services while delivering record operating income.
Apple: Exceeded expectations as iPhone demand strengthened and Services revenue reached another record.
Best Buy: Continued navigating a slower consumer electronics market while positioning for future AI-driven device upgrades.
CAVA: Outperformed the restaurant industry with strong comparable sales growth, expanding margins, and rapid restaurant expansion.
Chipotle Mexican Grill: Returned to positive transaction growth while maintaining strong digital sales and disciplined pricing.
Costco Wholesale: Delivered another exceptional quarter with robust comparable sales, accelerating e-commerce growth, and industry-leading membership renewal rates.
Darden Restaurants: Produced another solid quarter driven by strong performance at Olive Garden and LongHorn Steakhouse while maintaining healthy margins.
Dollar General: Delivered improving results as value-conscious consumers continued shifting spending toward discount retailers.
Dollar Tree: Continued improving profitability through operational efficiencies while Family Dollar optimization efforts progressed.
Domino’s Pizza: Reported steady growth supported by international expansion, strong franchise economics, and digital ordering leadership.
Five Below: Continued expanding rapidly despite softer discretionary spending, supported by new store openings and value-focused merchandising.
Kroger: Delivered steady results with positive identical sales, strong digital growth, and continued expansion of its retail media business.
Lowe’s: Produced stable results despite continued pressure from a softer home improvement market, supported by professional contractor demand.
Lululemon: Delivered healthy revenue growth led by international expansion while maintaining resilient profitability.
McDonald’s: Exceeded expectations with strong global comparable sales growth, expanding digital engagement, and continued loyalty momentum.
Microsoft: Reported another exceptional quarter as Azure cloud growth and enterprise AI adoption accelerated.
Nike: Continued executing its turnaround strategy while rebuilding wholesale partnerships and normalizing inventory.
NVIDIA: Delivered another extraordinary quarter as AI infrastructure demand continued significantly outpacing supply.
Restaurant Brands International: Reported continued systemwide sales growth driven by international expansion and strong franchise performance.
Ross Stores: Continued benefiting from consumers seeking value, delivering another solid quarter with healthy traffic and profitability.
Shake Shack: Posted healthy revenue growth supported by restaurant expansion, digital engagement, and positive comparable sales.
Sprouts Farmers Market: Reported solid revenue growth, healthy profitability, and continued store expansion despite moderating comparable sales.
Starbucks: Continued executing its turnaround strategy with improving operational trends while investing heavily in customer experience.
Target: Faced continued pressure from softer discretionary demand but remained focused on restoring profitable growth through merchandising and operational improvements.
Tesco: Continued gaining market share through disciplined pricing, strong loyalty engagement, and consistent execution.
The Home Depot: Delivered resilient results despite a challenging housing market through professional customer strength and operational discipline.
TJX Companies: Continued outperforming retail with strong traffic, healthy comparable sales, and resilient demand for off-price merchandise.
Ulta Beauty: Delivered better-than-expected results supported by loyalty growth, skincare strength, and disciplined inventory management.
Walmart: Reported another strong quarter driven by e-commerce growth, expanding marketplace and advertising businesses, and continued grocery market share gains.
Wendy’s: Produced stable results through value-focused promotions, digital growth, and continued franchise expansion.
Yum! Brands: Delivered solid growth led by Taco Bell, digital ordering, and continued international development.