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Some Retail Stocks Could Take Hits From the Los Angeles Wildfires
Key Takeaways
Target ( TGT ) is among the retailers with the most exposure to the deadly wildfires that have raged this week in the Los Angeles area, JPMorgan analysts said Friday.
Sixty-six Target locations, or 3.3% of its total stores, are within the impacted region, which includes parts of the Los Angeles, Pasadena, Glendale and other areas, according to JPMorgan. Luxury furniture retailer RH ( RH ), has four stores in the region, or 5% of its total; AutoZone ( AZ0 ) has 85 locations in the area, or 1.3% of its total.
Generally, JPMorgan said, “natural disasters result in an immediate headwind to sales,” adding that home improvement retailers often eventually experience tailwinds as an area rebuilds. Home Depot ( HD ) has 25 stores in the area, 1.2% of its total, and Lowe's ( LOW ) has 9 locations, or 0.9%.
Other retailers with a significant store presence in the wildfire area include Costco ( COST ) (14 stores, 2.3%), Williams-Sonoma ( WSM ) (12 stores, 2.3%), Best Buy ( BBY ) (20 stores, 2.1%), and O'Reilly Automotive ( ORLY ) (53 stores, 0.9%), JPMorgan said.
The wildfires have killed at least 10 people , according to the Los Angeles County authorities, and caused as much as $150 billion in damages, per AccuWeather .
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