The survey comprised 500 mid-upper income consumers, and the big-ticket durable items excluded houses and vehicles.
The survey showed 42% of consumers expect to increase spending, 37% expect to maintain spending, while 21% plan to spend less than they did in the previous 18 months. Notably, consumers that aim to spend more plan to spend significantly more, on average, than those who plan to spend less.
Forty-nine percent of consumers that plan to spend more on big-ticket items expect to do so in just one category, and 67% of those planning lower spending expect to cut back in just one category. In line with the practice seen in the previous 18 months, electronics once again emerged as the top category to see increased spending, followed by furniture and appliances.
Wedbush said upgrade and replacement cycles are the biggest reasons for consumers to spend more on big-ticket purchases, while 12% expect to spend more when there is better product availability, and 10% expect to spend more because of higher income expectations.
The survey also showed 45% of recent homebuyers aim to spend more on big-ticket purchases, compared with 41% of non-homebuyers.
Overall, the survey results make business conditions "less favorable" for flooring retailer Floor & Decor (FND), sporting goods retailers Dick's Sporting Goods (DKS), and Academy Sports (ASO), mattress companies Tempur-Sealy (TPX), Purple Innovation (PRPL) and Sleep Number (SNBR-N), as well as powersports omnichannel company RumbleOn (RMBL).
"We note that investors have muted 2022 growth expectations for most of these retailers, and many have company-specific drivers, leaving us comfortable with our ratings," Wedbush Analyst Seth Basham said.
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