- Big companies' Q1 earnings beat Wall Street expectations, with Stoxx Europe 600 earnings-per-share jumping 18%.
- Companies seem to be using inflation as an excuse to increase prices and protect margins.
- Ralph Lauren increased the average price of its items by 12%, leading to a 7% jump in shares.
- Consumer-goods multinationals like Procter & Gamble, Unilever and Nestlé raised prices 10%.
- Profit margins should be a key focus of equity investors this year.
‘Greedflation’ Is Real—and Probably Good for the Economy
Big companies beat Wall Street expectations in Q1 earnings, using inflation as an excuse to protect margins and increase prices. Profit margins should be a key focus for investors this year.