THE SITUATION IN APRIL

Brands and retailers might still be facing headwinds with profits, but one bit of good news is that not only have inventories been reduced to more realistic levels, but more companies have solid cash positions.

MORE CASH.  Target in its Q4 financial statements reported “cash from operations more than doubled from $4.0 billion in 2022 to $8.6 billion in 2023.”   The Gap not only returned to showing a profit in Q4, the company reported that it ended the fiscal year (Dec 2023) with a cash balance of $1.9 billion.

OUTLOOK.  Brands and retailers remain very conservative in their outlook.  At this time, most are forecasting low single digit to flat sales for 2024.