Quarterly results from Best Buy, Ralph Lauren and Dollar Tree show divergence in consumer spending
As inflation on necessities like groceries remains stubbornly high, the well-heeled consumer appears to still be spending, while the lower-income shopper continues to cut back their purchases, according to the latest batch of earnings reports NEW YORK -- As i NFL ation on necessities like groceries remains stubbornly high, the well-heeled consumer appears to still be spending , while lower-income shoppers continues to cut back their purchases, according to the latest batch of earnings reports. Ralph Lauren Corp., which sells $300 sweaters and $500 handbags, reported a surprise increase in revenue in the latest fiscal quarter, while Dollar Tree cut its annual profit outlook on shoppers' increased focus on groceries and other necessities. Groceries carry a lower profit margin compared with general merchandise like clothing. The dollar chain's profits were also hit by an increased level of so-called shrink — an industry term for inventory loss, including theft. Dollar Tree'...