Retail companies like Target and Macy's are more likely to have
A) stable sales and earnings per share.
B) cyclical sales but less volatile earnings per share.
C) cyclical sales and more volatile earnings per share.
D) cyclical sales but stable accounts receivable and inventory.

Question

Quizplus · Accepted Answer

Retail companies like Target and Macy's have cyclical sales due to factors such as seasonal demand and economic conditions. This often leads to more volatile earnings per share as their expenses may not vary as much as sales do. Additionally, changes in consumer behavior and competition can also impact their earnings.

Retail Companies Like Target and Macy's Are More Likely to Have