Retail earnings take center stage this week as several holdings in the Direxion Daily Retail Bull 3X Shares (RETL ) prepare to report results just days before the Thanksgiving and Black Friday shopping weekend.
Six companies from the ETF’s roster will release quarterly results between Monday and Tuesday. The group includes Burlington Stores, Inc. (BURL), Best Buy Co., Inc. (BBY), Kohl’s Corp. (KSS), Dick’s Sporting Goods, Inc. (DKS), Urban Outfitters, Inc. (URBN), and Abercrombie & Fitch Co. (ANF).
These six retailers collectively represent about 6.7% of RETL’s portfolio, according to ETF Database data. The ETF has attracted $6.01 million in net inflows over the past month.
Urban Outfitters kicks off the earnings parade on Monday after market close. The remaining five companies all report Tuesday morning just ahead of the Thanksgiving holiday.
RETL tracks the S&P Retail Select Industry Index, offering three times the index’s daily performance, according to ETF Database. The index uses a modified equal-weighted methodology rather than traditional market-cap weighting, giving each holding similar influence on performance regardless of company size.
Equal Weighting Amplifies Results
The equal-weight structure means moves in smaller retailers like Dick’s Sporting Goods can impact the fund’s performance as much as larger names like Amazon.com, Inc. (AMZN), which holds a 1.15% position in the index.
The timing of the earnings reports coincides with optimistic holiday forecasts from consulting firm Bain & Company, which projects an 11% surge in Black Friday and Cyber Monday sales this year. The forecast exceeds broader holiday shopping growth estimates, according to the Bain research.
RETL’s recent fund flows show $349,400 in net inflows over the past five days, per ETF Database. The ETF has a 0.94% expense ratio and holds $30.2 million in assets under management.
Burlington Stores carries the highest weighting among the six earnings reporters at 1.27%, followed by Best Buy at 1.2% and Kohl’s at 1.17%, according to ETF Database.
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