Home Depot, Inc.NYSE
Fri, Oct. 14, 9:05 AM
- Retail sales increased 2.7% Y/Y and 0.6% M/M in September on broad gains across categories. The sales totals for August were also nudged slightly higher.
- Sales from nonstore retailers like Amazon (NASDAQ:AMZN) were up 10.6% Y/Y to once again account for a higher percentage of overall sales.
- The building material & garden equipment category showed a 1.4% M/M and 5.6% Y/Y gain which bodes well for Home Depot (NYSE:HD) and Lowe's (NYSE:LOW).
- Department stores (DDS, SHLD, JCP, M, JWN) lagged again as sales fell 0.7% M/M and 6.4% Y/Y, while furniture and home furnishing stores (HVT, WSM, KIRK, RH, BBBY) outpaced the broad averages in the sector.
- Restaurant sales (NASDAQ:BITE) showed a nice jump from August, although the breakdown between large publicly-traded chains and independent restaurants isn't broken down.
- The early take from retail analysts is that the overall tone from the report is ever-so-slightly positive for Wal-Mart (NYSE:WMT) and Target (NYSE:TGT).
- Previously: Retail sales track higher as expected (Oct. 14)
Mon, Oct. 10, 3:29 AM
- At least eleven people were killed in South and North Carolina by Hurricane Matthew's destructive forces on Sunday, bringing the storm's death toll to 19 across the southeastern U.S.
- More than 2M businesses and homes are still in the dark, and water, sewage and gas are out in many areas.
- Although the hurricane has been downgraded to a post-tropical cyclone, authorities have warned it will pose dangers for days to come.
- Related tickers: HCI, UVE, HRTG, UIHC, FNHC, PGTI, BECN, OC, HD, LOW
Sun, Oct. 9, 4:27 AM
- Hurricane Matthew slammed into North Carolina and Virginia on Sunday, packing a diminished yet still potent punch as it caused major flooding and widespread power outages along the U.S. East Coast.
- The most powerful Atlantic storm since 2007 has killed at least 11 people in Florida, Georgia and North Carolina since Thursday and left more than two million businesses and homes without power.
- Related tickers: HCI, UVE, HRTG, UIHC, FNHC, PGTI, BECN, OC, HD, LOW
Thu, Oct. 6, 4:09 PM
- Investors bid up Home Depot (NYSE:HD) today with Hurricane Matthew bearing down on Florida, Georgia, and South Carolina.
- The retailer has seen notable lifts to comparable sales in the past from large hurricanes or slow-moving tropical storms, although in some cases the sales gains have been offset by extra storm-related costs
- Shares of HD closed 2.05% higher on the day to end a trading session over $130 for the first time in about a month.
Thu, Oct. 6, 4:02 PM
- Alongside big declines for some property & casualty insurers, building and roofing materials suppliers are rallying ahead of Hurricane Matthew, which is now a Category 4 storm.
- According to CoreLogic the reconstruction costs of this storm could be in the area of $54B.
- Beacon Roofing (BECN +4.4%), Owens Corning (OC +2.5%), PGT (PGTI +9.5%).
- The team at JPMorgan notes Home Depot (HD +2.1%) and Lowe's (LOW -0.2%) both saw same-store sales climb about 100 basis points after three major storms hit in 2004. Trouble is, expenses climbed as well, leading to little effect on EPS.
Thu, Sep. 15, 9:02 AM
- Retail sales fell in August on a month-over-month comparison. The drop wasn't a large surprise considering the onslaught of warnings from the retail sector on store traffic.
- 8 out of the 13 retail categories showed negative growth during the month, with the largest drops recorded in the building material/garden equipment/supplies dealers and miscellaneous store retailers categories. The broad weakness turned on its head the argument that money freed up from a lower level of auto sales would be funneled into other consumer purchases.
- Food services and drinking places showed a +0.9% M/M and +5.8% Y/Y increase in a somewhat surprising result considering the harsh read from Black Box Intelligence on August same-store sales in the restaurant sector BITE. Is the discrepancy an indication that independent restaurants are taking market share?
- On a year-over-year basis, retail sales were up 1.9%. As expected the Amazon-influenced nonstore retailers category did the heavy lifting with an 11% gain. Larger U.S. retail chains (WMT, SPLS, TGT, BBY, DG, COST, KR, WBA, CVS, LOW, HD, SWY) have been raising the issue of pricing pressure in recent conference presentations and guidance updates which could be a nagging sales deflator for the balance of the year.
- Previously: Retail sales disappoint in August (Sept. 15)
- 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, CNDF, CNSF, IBUY, JHMC, JHMS.
Fri, Sep. 2, 7:32 AM
- "While the situation is still developing, the prospect of harm is significant and apparent,” writes the Retail Industry Leaders Association to the Department of Commerce and the Federal Maritime Commission in wake of the bankruptcy filing of South Korea's Hanjin Shipping.
- Hanjin handles nearly 8% of trans-Pacific trade volume, and terminal operators, ports, cargo handlers, truckers, and others are refusing to handle its cargo over fear they won't get paid.
- The resulting chaos in the shipping industry - U.S.-bound cargo isn't leaving port, cargo-filled Hanjin ships can't get into U.S. ports, already delivered cargo sits un-handled - comes as U.S. retailers are about to begin stocking up for the holiday season.
- Those most exposed include Wal-Mart (NYSE:WMT), Target (NYSE:TGT), and J.C. Penney (NYSE:JCP). Home Depot (NYSE:HD) says Hanjin isn't its only carrier, so it's not expecting a material impact.
- Previously: Hanjin ships get stranded at sea (Sept. 1)
- ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, FXD, RHS, FDIS, FSTA, RCD, PMR, JHMC, JHMS, CNSF, CNDF
Thu, Aug. 18, 4:33 PM
Tue, Aug. 16, 6:35 AM
- Home Depot (NYSE:HD) reports comparable-store sales rose 4.7% in Q2.
- The comp delivered for the U.S. stores was 5.4%.
- Gross margin rate constant Y/Y at 33.7%.
- SG&A expense rate increased 70 bps to 16.6%.
- Operating margin rate grew 80 bps to 15.5%.
- Merchandise inventory +3.9% to $12.32B.
- Number of customer transactions up 2.3% to 430M.
- Store count 2,275 for the period
- FY2016 Guidance: Sales growth: ~+6.3%; Comparable-store sales: ~+4.9%; Diluted EPS: ~$6.31 (~+15.6%).
- HD -0.41% premarket.
Tue, Aug. 16, 6:01 AM
Mon, Aug. 15, 5:30 PM
Mon, Aug. 15, 9:54 AM
- Credit Suisse analyst Seth Sigman and team sizes up Home Depot (HD +0.9%) and Lowe's (LOW +1%), with both home improvement chains due to report earnings this week.
- The investment firm expects Home Depot to report a 4.8% increase in comparable sales for the quarter to outpace the 4.0% rise seen for Lowe's. The outlook is based on a stronger performance for the housing markets where Home Depot has a higher concentration.
- CS sees Home Depot reporting $1.95 EPS vs. $1.97 consensus and Lowe's coming in at $1.37 vs. $1.41 consensus. An aggressive promotional stance during the quarter is expected to take a toll on the bottom line.
- Looking ahead, Credit Suisse thinks comments from management on the impact of sales pulled forward will be key to factoring in underlying demand.
- Home Depot reports earnings on Tuesday, while Lowe's is due to spill numbers on Wednesday.
- Sigman ranks #720 out of the 4,120 analysts listed on TipRanks.com.
Fri, Aug. 12, 8:49 AM
- Retail sales came in flat for July with weakness in grocery stores, restaurants, and department stores standing out. The U.S. economy had produced three straight months of positive retail sales growth before the disappointment in July.
- Once again, the nonstore retailers category (primarily e-commerce) led growth with a 1.3% M/M and 14.1% Y/Y gain in July. Sales at health and personal care stores were also solid with a 7.8% Y/Y rise.
- Retail sales in June were revised to +0.9% from +0.7% in a positive development for the sector.
- Retail Sales report (.pdf)
- The S&P Retail ETF (NYSEARCA:XRT) is up 0.64% premarket to $45.55 as it looks to extend on yesterday's gain.
- 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, JHMS, IBUY, CNSF, CNDF, JHMC.
- Related stocks: WMT, TGT, COST, SPLS, HD, LOW, AMZN.
Tue, Aug. 2, 7:29 AM
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%).