US companies report resilient consumer demand — CNBC
US-based Coca-Cola, Royal Caribbean and UPS reported resilient consumer spending in the United States in their third-quarter reports despite inflation, higher fuel prices and high borrowing rates. At the same time, appliance manufacturer Whirlpool recorded a decline in sales in North America and lowered its annual revenue forecast, CNBC reports.
US retail sales increased by 0.8% in September after rising by 1.3% in August. The September figure was supported by higher spending at gas stations. Executives at some companies said that adverse factors have not yet affected sales.
Beverages, travel and delivery
Coca-Cola exceeded analysts' expectations for quarterly revenue and profit. The company's sales volume in North America, measured in equivalent cases, was unchanged, which the company viewed as a sign of stable demand despite higher prices. Coca-Cola also raised its forecast for full-year adjusted earnings-per-share growth to at least 11%, compared with its previous expectation of 9–10% growth.
Cruise company Royal Caribbean reported that its number of guests rose by 9% year-on-year in the third quarter to 2.7 million. The company also said that bookings for 2027 are growing at a high double-digit rate and are ahead of historical levels. Chief Executive Officer Jason Liberty attributed the results to resilient demand for vacations.
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UPS exceeded Wall Street expectations for earnings per share and revenue. The company's US revenue increased by 4.5% to $14.86 billion. UPS raised its forecast for annual consolidated revenue for the second consecutive time, to approximately $92.6 billion from its previous forecast of $91.2 billion.
Uneven business results
Sherwin-Williams' sales rose by 7.9% year-on-year, primarily due to higher prices. At the same time, the company noted that raw-material and supply costs partly offset the positive effect on profit. Sherwin-Williams maintained its annual forecast and expects subdued demand through the end of the year and in 2027.
Whirlpool, by contrast, fell short of analysts' expectations for revenue and profit. The appliance manufacturer's net sales in North America for the period ending September 30 declined by more than 8% year-on-year.
