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

.

Read the original article on
Investopedia