Illustration: Aïda Amer/Axios

Already facing the uncertainty and increased costs of the trade war and a looming end of the business cycle, American companies are finding they now have a new foe to fight: prolonged, and in some cases unanticipated, extreme weather conditions.

Why it matters: The conditions have been awful for farmers, and the agriculture and commodities markets, and now companies ranging from retail to industrials are highlighting weather-related struggles weighing on sales and revenue.

What's happening: Across the Midwest and Central U.S., this spring has brought one atmospheric onslaught after another, from late season snowstorms to severe thunderstorms that have left rivers overflowing, exceeding historic flood benchmarks.

What they're saying:

  • "Weather was challenging during the quarter resulting in suppressed demand for our spring seasonal goods, which were down high single-digits," said Kohl's CFO Bruce Besanko, after the retailer's 3.4% same-store sales decline in the first quarter.
  • "The weather in February impacted our business. 17 of 19 regions were negative," said Home Depot CFO Carol Tomé after posting a 2.5% increase in same-store sales versus the 4.2% analysts expected.
  • "I don't think we could have envisioned ... what is now approaching record rainfall in Southern California or in California," said Bernard Acoca, president and CEO of El Pollo Loco, after the restaurant reduced guidance for the rest of fiscal 2019.
  • DowDuPont and UPS also cited the impacts of flooding and weather-related disruptions.

Between the lines: "Normally, we'd be highly skeptical of retailers blaming the weather for disappointing sales," Ed Yardeni, president and chief investment strategist at Yardeni Research, wrote in a note to clients.

  • "But this time, Mother Nature may indeed be at fault."

Meteorologists agree: "These events have likely affected businesses in varying ways: from either a delivery standpoint or the inclement weather making it difficult for consumers to actually get to the stores," Steve Bowen, director and meteorologist for Aon Benfield's Impact Forecasting division, tells Axios in an email.

Our thought bubble, from Axios Science editor Andrew Freedman: The extreme weather we've been seeing is consistent with a warming climate in which the atmosphere is able to hold more moisture.

  • Studies have shown an increase in heavy precipitation events during the past few decades in the Midwest and Central states, and other research shows a greater tendency for certain weather patterns to form that can lead to amplified extremes.

Go deeper ... Central U.S. storms: 3 die in Missouri, "violent tornado" hits Jefferson City

Go deeper

Updated 5 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 10 p.m. ET: 32,471,119 — Total deaths: 987,593 — Total recoveries: 22,374,557Map.
  2. U.S.: Total confirmed cases as of 10 p.m. ET: 7,032,524 — Total deaths: 203,657 — Total recoveries: 2,727,335 — Total tests: 99,483,712Map.
  3. States: "We’re not closing anything going forward": Florida fully lifts COVID restaurant restrictions — Virginia Gov. Ralph Northam tests positive for coronavirus.
  4. Health: Young people accounted for 20% of cases this summer.
  5. Business: Coronavirus has made airports happier places The expiration of Pandemic Unemployment Assistance looms.
  6. Education: Where bringing students back to school is most risky.
Mike Allen, author of AM
7 hours ago - Politics & Policy

Biden pushes unity message in new TV wave

A fresh Joe Biden ad, "New Start," signals an effort by his campaign to make unity a central theme, underscoring a new passage in his stump speech that says he won't be a president just for Democrats but for all Americans.

What he's saying: The ad — which began Friday night, and is a follow-up to "Fresh Start" — draws from a Biden speech earlier in the week in Manitowoc, Wisconsin:

Trump prepares to announce Amy Coney Barrett as Supreme Court replacement

Judge Amy Coney Barrett. Photo: Matt Cashore/Notre Dame University via Reuters

President Trump is preparing to nominate federal appeals court Judge Amy Coney Barrett of Indiana, a favorite of both the social conservative base and Republican elected officials, to succeed Justice Ruth Bader Ginsburg, Republican sources tell Axios.

Why it matters: Barrett would push the already conservative court further and harder to the right, for decades to come, on the most important issues in American politics — from abortion to the limits of presidential power. If confirmed, she would give conservatives a 6-3 majority on the high court.

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Subscription failed
Thank you for subscribing!