Question

Retail companies like Target and Limited Brands 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.

Answer 1

Retail companies like Target and Limited Brands are more likely to have cyclical sales and more volatile earnings per share.

Step-by-step explanation:

Retail companies like Target and Limited Brands are more likely to have cyclical sales and more volatile earnings per share.

These companies are influenced by changes in consumer spending patterns, which can vary depending on economic conditions.

For example, during economic downturns, consumers may reduce their spending on non-essential items, leading to a decrease in sales for these retail companies.