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
Fri, Jul. 1, 7:03 AM
- June monthly performance was: +2.86%
- 52-week performance vs. the S&P 500 is: +7%
- $0.25 in dividends were paid in June
- Top 10 Holdings as of 5/31/2016: S&P Global Inc (SPGI): 2.15464%, Archer-Daniels Midland Co (ADM): 2.15039%, Cincinnati Financial Corp (CINF): 2.13109%, McCormick & Co Inc Non-Voting (MKC): 2.10728%, C.R. Bard Inc (BCR): 2.10554%, Cintas Corp (CTAS): 2.10524%, Leggett & Platt Inc (LEG): 2.10068%, Lowe's Companies Inc (LOW): 2.09886%, Brown-Forman Corp Class B (BF.B): 2.09499%, Pentair PLC (PNR): 2.09495%
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%).
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.
Mon, Jun. 6, 1:21 PM
- Morgan Stanley analyst Simeon Gutman calls Lowe's (LOW -2%) one of the firm's top investment ideas (Overweight rating, $87 PT) after sitting down with the home improvement retailer's management last week. Snippets from the analyst's note are below.
- Industry snapshot: "The US housing stock is aging (33 years) while affordability has never been better. We estimate there is a $12-15 billion sales opportunity as industry demand normalizes. This does not include any upside potential from Sears, which continues to cede market share (~13% of HI market)." Upside with Pro: "Newly launched professional brands along with a pro only website and more targeted services are helping drive gains with the Pro. There was a step change in pro sales momentum in Q1, a clear signal that this strategy is resonating."
- Margin watch: "Incremental margins are around 25% and we see a pathway for them to climb to 30%. There is heightened internal focus on reducing indirect costs such as store fixtures, telecom, and utilities. There is also a medium to longer-term cost focus as LOW looks to centralize various corporate and store level functions."
- Shares of Lowe's have outperformed Home Depot this year (+3.1% vs. -2.5%). The company also achieved the rare feat of outcomping its rival last quarter.
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)
Fri, May 20, 8:34 AM
- Lowe's (NYSE:LOW) announces that it completed the acquisition of Rona.
- The highly-watched deal adds 539 stores in Canada to Lowe's overall store count and pro-forma revenue of about C$6B ($4.58B US).
- Rona will keep its retail store banners and have a headquarters in Quebec.
- The home improvement market in Canada has grown at a steady rate over the last few years.
- Now read Lowe's: Surprisingly Good Q1 Results which includes some analysis of the Rona deal.
Wed, May 18, 11:15 AM
- Lowe's (LOW +3.2%) is solidly higher after posting a strong Q1 report even with expectations high.
- The company achieved a psychological breakthrough of sorts by delivering stronger same-store sales growth than Home Depot for the first time since 2009. This Bloomberg chart shows just how closely Lowe's has been nipping at its main rival's heels.
- Two things to watch for the rest of the year with Lowe's are the plans for the Rona integration and a close analysis on demand to see if a warm winter pulled many residential housing projects forward into the calendar year.
- Shares of Lowe's carved out a new all-time high of $78.78 with today's rally.
- Previously: Lowe's beats by $0.02, beats on revenue (May 18)
- Previously: Lowe's higher on earnings beat and strong comp (May 18)
Wed, May 18, 6:26 AM
- Lowe's (NYSE:LOW) reports comparable-store sales rose 7.3% in Q1.
- Comps for the U.S. home improvement business increased 7.5%.
- Gross margin rate fell 43 bps to 35.04%.
- SG&A expense rate improved 188 bps to 22.28%.
- Merchandise inventory +4.2% to $11.06B.
- Home improvement and hardware stores +17 Y/Y to 1,860.
- FY2016 Guidance: Sales growth: ~+6%; Comparable-store sales: ~+4%; Operating margin: +80 bps to +90 bps; Tax rate: ~38.1%; Diluted EPS: ~$4.11; New stores: ~45.
- LOW +2.56% premarket.
Wed, May 18, 6:01 AM
Tue, May 17, 5:30 PM
Mon, May 16, 12:10 PM
- Leon Cooperman's Omega Advisors sold its roughly 3M share stake in Citigroup (NYSE:C) in Q1, which had accounted for about 3.4% of the fund's holdings.
- He took new stakes in PayPal Holdings (NASDAQ:PYPL), UnitedHealth (NYSE:UNH), Coach (NYSE:COH), Lowe's (NYSE:LOW), Autozone (NYSE:AZO), and Electronic Arts (NASDAQ:EA).
- Cooperman also cut his FANG exposure, selling more than 50% of his Facebook (NASDAQ:FB), and about one-third of his Google (GOOG, GOOGL).
- While the 13F also shows a new 227K share stake in Apple (representing 0.7% of the total portfolio), CNBC reports that holding has since been sold.
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.
Fri, May 13, 10:55 AM
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.
Lowe's Cos., Inc. is engaged in the retail sale of home improvement products. The company offers products for maintenance, repair, remodeling, home decorating and property maintenance. It also offers home improvement products in the following categories: appliances, bathroom, building supply,... More
Industry: Home Improvement Stores
Country: United States
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