by Ray Keating
News
DisneyBizJournal.com
July 16, 2024
Since attendance appears to have been on the light side at Walt Disney World recently, the Disney speculation machine has shifted into high gear. But let’s look at some actual developments in the economy. In particular, like other businesses, The Walt Disney Company faces challenges regarding consumer spending.
As DisneyBizJournal noted, during Disney’s May 2024 earnings call, CFO Hugh Johnston noted that the Experiences division – parks and resorts, cruise line and consumer products – “will face some challenges in the coming quarter, namely, higher wages, increased costs due to cruise line expansions, and some demand moderation due to a return to pre-COVID levels.”
Fair enough, but there’s more behind “demand moderation.” The latest retail and food services sales report from the U.S. Census Bureau makes clear that consumers have been reining in their spending overall. Retail and food services sales in June came in flat (+0 percent). For good measure, retail and food services sales have seen no growth from December 2023 to June 2024. However, since these numbers are in nominal dollars, once inflation is factored into the equation, real retail sales have declined this year. In fact, going back to the start of 2023, real sales are down.
Inflation, recession expectations, political uncertainty, and slowing economic and job growth have combined to make the consumer cautious. That, in turn, points to short-term challenges for companies like Disney.
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Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, the Alliance of Saint Michael novels, and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.
The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?
The Disney Planner: The TO DO List Solution combines a simple, powerful system for getting things done with encouragement and fun for Disney fans, including those who love Mickey, Marvel, Star Wars, Indiana Jones, Pixar, princesses and more.
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Various books by Ray Keating…
• The Pastor Stephen Grant thrillers and mysteries. There are 19 books in the series now.
• The Alliance of Saint Michael novels – Cathedral and Subversion – are at Amazon.
• Order The Weekly Economist III: Another 52 Quick Reads to Help You Think Like an Economist, The Weekly Economist II: 52 More Quick Reads to Help You Think Like an Economist, and The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist at Amazon.com.
• Signed editions of Ray’s books are at www.raykeatingbooksandmore.com.
Also, check out Ray’s podcasts – the Daily Dose of Disney, Free Enterprise in Three Minutes, and the PRESS CLUB C Podcast.
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