Fri, Jul. 15, 8:51 AM
- There were steady gains across the bulk of categories that are counted for retail sales in June, with the notable exception of clothing and clothing accessories which declined 1% M/M.
- Building materials and garden equipment sales increased 3.9% Y/Y and almost 8% Y/Y in a positive sign for Home Depot (NYSE:HD) and Lowe's (NYSE:LOW). The monthly surge was the largest in the category since 2010.
- The closely-watched nonstore retailers category, which tracks sales by Amazon (NASDAQ:AMZN) and other e-commerce players, outperformed once again with a 14% Y/Y gain.
- The category that includes restaurants showed a 5% gain on a year-over-year comparison, but was down 0.3% from last month's sales tally. The 5% pace is far above what most major chains are seeing with their comparable restaurant sales growth (~0.3% YTD) in another indication that small, independent operators are taking market share.
- Previously: June retail sales strong, but May revised lower (July 15)
- Related ETFs: IYK, IYC, SCC, UCC, UGE, SZK, BITE, IBUY
Mon, Jun. 27, 11:28 AM
- Investors may be tempted to put money into hardline retailers post-Brexit, but, says Credit Suisse's Seth Sigman, just because they have limited exposure to Europe doesn't mean they're totally insulated. Previous market shocks had the group underperforming the S&P 500 by 500 basis points.
- Three trends to be mindful of: Troubles in Europe could hit stocks which could hit the U.S. consumer, interest rates will stay lower for longer, and the dollar will remain strong.
- The safest ares are home improvement and auto parts - think Home Depot (HD -1.8%), Lowe's (LOW -1.7%), Tractor Supply (TSCO -0.3%). There's also stocks with specific catalyst or plays into near-term fear - think Advance Auto Parts (AAP -0.5%), Dick's (DKS -3.6%), and Sportsmans Warehouse (SPWH -2.8%).
Thu, Jun. 23, 8:14 AM
- "Market share gains, competitive advantages, a solid underlying market, and strong management all position the company well for growth and provide downside protection," says analyst Jessica Schoen Mace, upgrading Home Depot (NYSE:HD) to Buy from Neutral. The price target of $155 is raised from $140, and represents 21% upside.
- Mace and team previously worried that slowing home price growth posed a risk to Home Depot, but note the company's comps have been positive even in the face of this slowdown.
- Full-year 2016 EPS is seen at $6.33 from $6.30, and 2017 at $7.15 from $7.10.
- Shares +1.1% premarket
Thu, Jun. 23, 8:04 AM
- Home Depot (NYSE:HD) +1% premarket as Nomura upgrades shares to Buy from Neutral with a $155 price target, saying the company is gaining market share and competitive advantages, and benefiting from an improving overall market.
- Nomura says the biggest change in its HD outlook is the previous notion that slowing home price growth posed a sizable risk, but comp sales remained solidly positive even after the Y/Y increase in home price growth slowed to 5.6% in 2015 and 4.4% in 2014 from 13.5% in 2013.
- While the firm still expects slowing home price gains, it believes any positive growth would be a tailwind, and is just one of several factors affecting the contribution from housing to HD’s sales opportunity, including housing formation, turnover and aging housing stock.
Tue, Jun. 14, 8:49 AM
- Retail sales topped expectations in May with some categories tipping off a healthy spending trend.
- Nonstore retailers once again led all categories with 12% Y/Y growth. Amazon (NASDAQ:AMZN) had a lot to say with that strong performance.
- Health and personal care stores were also solid with an 8% Y/Y rise in sales. Chains such as Walgreens (NASDAQ:WBA), Rite Aid (NYSE:RAD), Ulta Salon (NASDAQ:ULTA), and Sally Beauty Holdings (NYSE:SBH) continue to draw millennial interest.
- Department stores lagged once again with a 0.9% M/M drop and 6% Y/Y tail-off. A tough month of weather contributed to a 2% M/M drop in the building materials and garden equipment (HD, LOW) category.
- Restaurants performed ahead of expectations, sales were up 0.8% M/M and 6.5% Y/Y. That mark bodes well for McDonald's (NYSE:MCD) continuing its streak of staying in positive territory with comparable-store sales.
- Previously: Retail sales decelerate from April's pace (June 14)
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, JHMC, CNDF.
Wed, Jun. 8, 10:35 AM
- BrandZ keeps a pulse on the value of brands with consumers. Does it matter? An index of companies in the BrandZ Strong Brands Portfolio outperformed the S&P 500 by 5X over the last nine years.
- The list of top risers in brand value this year includes Amazon (NASDAQ:AMZN), Starbucks (NASDAQ:SBUX), JD.com (NASDAQ:JD), Home Depot (NYSE:HD), Lowe's' (NYSE:LOW), Costco (NASDAQ:COST), Burger King (NYSE:QSR), MasterCard (NYSE:MA), and Chanel (private).
- Electrek notes that Tesla Motors (NASDAQ:TSLA) bumped Volkswagen out of the top ten in the ranking of automobile brands. Toyota (NYSE:TM), BMW (OTCPK:BAMXY), and Mercedes-Benz (OTCPK:DDAIF) hold down the top three spots.
Tue, May 31, 9:11 AM
- Consumer spending on durable goods rose 2.3% in April, while spending on nondurable goods increased 1.4%. Both marks exceeded the expectations of economists. Overall consumer spending rose at the fastest rate in seven years.with a 1.0% M/M increase.
- While a higher level of spending on automobiles was anticipated, a category to keep an eye on is home furnishings and home repair with more data out suggesting that millennials are freeing up dollars for their houses.
- Related stocks: BSET, CRWS, ETH, HOFT, LZB, LCUT, NWL, SCSS, STLY, TPX, TUP, BGG, SWK, HD, LOW.
- Previously: Retailers with a fix on the modern U.S. consumer (May 28)
- Previously: Personal income rises in-line with forecast (May 31)
Tue, May 24, 9:59 AM
- Home Depot (HD +1%) discloses that it recorded $2M in pre-tax expenses in Q1 tied to the data breach in 2014.
- The company says no accrual amount has been set aside because it's unable to estimate a final range of costs.
- A total of $263M of pretax gross expenses related to the data breach have been recorded, a tally partially offset by $100M of expected insurance proceeds.
- SEC Form 10-Q
Thu, May 19, 4:37 PM
Tue, May 17, 10:40 AM
- Shares of Home Depot (HD -1.5%) are lower on the day despite a solid Q1 sales report and some encouraging nuggets on the post-earnings conference call.
- Management said that the number of +$900 transactions rose 9.5% as consumers continued to spend freely on their houses.
- Home Depot will continue to use a third-party to provide financing for the HD Pro business.
- On key markets: Texas wasn't a problem for Home Depot is it was for other retailers due to energy market weakness. The lifting of a water restriction in California is seen as a positive.
- On millennials: Execs note that a delayed cycle is in play with the generation entering the home buying/home improvement spending mode about six years later than the prior generation.
- On appliances: There's no fear expressed from the company on new competition in the category. More floor space will be dedicated to appliances due to strong demand.
- On e-commerce: Online traffic was up in the double digits. Online sales rose 22% Y/Y in Q1.
- Previously: Home Depot beats by $0.09, beats on revenue (May 17)
- Previously: Home Depot raises FY2016 guidance (May 17)
- Home Depot earnings call webcast
Tue, May 17, 7:13 AM
- Home Depot (NYSE:HD) reports comparable-store sales rose 6.5% in Q1.
- The comp delivered for the U.S. stores was 7.4%.
- Gross margin rate squeezed 20 bps to 34.2%.
- SG&A expense rate improved 110 bps to 18.8%.
- Operating margin rate increased 110 bps to 13.5%.
- Merchandise inventory +7.4% to $13.22B.
- Number of customer transactions grew 4.1% to 374.8M.
- Store count +1 Q/Q to 2,275
- FY2016 Guidance: Sales growth: ~+6.3%; Comparable-store sales: ~+4.9%; Diluted EPS: ~$6.27 (~+14.8%).
- HD +1.26% premarket.
Tue, May 17, 6:02 AM
Mon, May 16, 5:30 PM
Sat, May 14, 11:01 AM
- The retail sector stays in focus next week with Target (NYSE:TGT), Wal-Mart (NYSE:WMT), TJX Companies (NYSE:TJX), and Ross Stores (NASDAQ:ROST) all due to report on Q1 earnings to follow on a week of dismal reports and guidance from the department store sector (Nordstrom, L Brands, Macy's, Kohl's). Home improvement chains Home Depot (NYSE:HD) and Lowe's (NYSE:LOW) are also due to spill numbers.
- The story from the Commerce Department's April read of retail sales (+3.0% Y/Y, +1.3% M/M) is one of a consumer spending on housing, entertainment, and personal care/fitness over apparel and general merchandise. The 10% Y/Y gain in the nonstore retailer category also tipped that the Amazon (NASDAQ:AMZN) Effect is magnifying.
- Amplify ETFs CEO Christian Magoon tells Seeking Alpha that the traditional retail model appears to be broken. Amplify's Online Retail ETF (NASDAQ:IBUY) is a bet on companies such as Netflix (NASDAQ:NFLX), GrubHub (NYSE:GRUB), Blue Nile (NASDAQ:NILE), and Shopify (NYSE:SHOP) that are reeling in millennial dollars.
- Magoon on retail: "Traditional retailers face the headwinds of higher cost structures including the very real threat of increasing wages in the form of the $15 minimum wage campaign. Less flexible with inventory management, they also are more vulnerable to issues like weather and changing consumer preferences."
- Retail ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, PBJ, IYK, FXD, IYC, RHS, FDIS, PEJ, FSTA, PSL, SCC, RCD, UCC, PEZ, PMR, PSCC, UGE, PSCD, SZK, BITE.
- Apparel stocks: KATE, ANN, LULU, PVH, VNCE, CRI, UA, HBI, VFC, COLM, GIL, SQBG, JCP, KSS, DDS, M, JWN, ARO, AEO, ANF, WTSL, TLYS, CACH, ZUMZ, PSUN, EXPR, BKE, GIII, SQBG, HBI, VRA, ICON, SHOO, PERY, DXLG, BONT, GES, URBN, RL,GIL, NKE, OXM, HBI, VNCE, PERY, ICON, FL.
Thu, May 12, 10:24 AM
- What should investors make of Home Depot (HD -0.2%) and Lowe's (LOW +0.1%) with the retail sector having a tough earnings week on general consumer spending weakness?
- Though home improvement spending was solid in Q1 on a broad measure, the outlook for the rest of the year from the home improvement chains is where the focus will fall.
- Other factors in the mix are the soft sales for Kohl's in the home goods category (spillover?) and the planned re-entry of J.C. Penney into the appliances business (supplier leveraging?).
- Shares of Home Depot and Lowe's have held up over the last five trading sessions amid some retail sector chaos, with HD actually out-performing the S&P 500.
Mon, May 2, 7:56 AM
- April monthly performance was: -0.42%
- $0.06 in dividends were paid in April
- Top 10 Holdings as of 3/31/2016: Coca-Cola Co (KO): 4.27%, Microsoft Corp (MSFT): 3.51%, Altria Group Inc (MO): 3.33%, Apple Inc (AAPL): 3.31%, AbbVie Inc (ABBV): 2.67%, International Business Machines Corp (IBM): 2.38%, McDonald's Corp (MCD): 2.09%, Cisco Systems Inc (CSCO): 1.95%, 3M Co (MMM): 1.84%, Home Depot Inc (HD): 1.81%
Home Depot, Inc. is a home improvement retailer that sells building materials and home improvement products. It operates The Home Depot stores, which provides full-service, warehouse-style stores that sells a wide assortment of building materials, home improvement products and lawn and garden... More
Industry: Home Improvement Stores
Country: United States
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