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Tue, Jan. 26, 1:18 PM
- Mall stocks are solidly ahead of broad market averages as investors key off today's strong read on consumer confidence. A decent report from Redbook on chain store sales is also in the mix.
- Gap (GPS +4.7%), American Eagle Outfitters (AEO +4.8%), Tilly's (TLYS +5.8%), Children's Place (PLCE +4.5%), Buckle (BKE +5.3%), and Urban Outfitters (URBN +3.7%) are all taking back ground lost earlier this year.
- The gains are slightly less for department store chains J.C. Penney (JCP +2.4%), Kohl's (KSS +2.6%), and Macy's (M +2.7%).
- Best Buy (BBY +3.5%) and Target (TGT +2.3%) are also trying to break out.
- Previously: Consumer confidence improves 1.8 points in January (Jan. 26)
- Previously: Weather plays a mixed role (Jan. 26)
Thu, Jan. 7, 10:14 AM
- A large number of retail stocks are defying the global market sell-off to put in strong gains.
- The unexpected strength follows a few store chains reporting solid holiday sales growth, headlined by L Brands with a stellar 8% comp. The underlying story behind the good read may be that $2 gas prices are helping to feed consumer spending at U.S. store chains.
- Gasbuddy.com forecasts gas prices will stay low in the U.S. for all of 2016.
- Notable gainers include Wal-Mart (WMT +2%), Target (TGT +1%), Gap (GPS +2.3%), Fred's (FRED +1.2%), Express (EXPR +1.1%), American Eagle Outfitters (AEO +1.6%), Tilly's (TLYS +2.3%), Urban Outfitters (URBN +4%), TJX Companies (TJX +0.6%), Ross Stores (ROST +1.6%), Kohl's (KSS +2%), Stein Mart (SMRT +4.4%), Citi Trends (CTRN +1.7%), Buckle (BKE +4.8%).
- Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, FXD, FDIS, RHS, FSTA, RCD, PMR, BITE
Dec. 16, 2015, 8:12 AM
- The $1.9B deal has CVS Health (NYSE:CVS) adding Target's (NYSE:TGT) 1,672 pharmacies across 47 states, and CVS will operate them through a store-within-a-store format, branded as CVS/pharmacy. In addition, this brand will be included in all new Targets offering pharmacy services, and 79 Target clinic locations will be rebranded as MinuteClinic.
- Target will recognize a pretax gain of $575M-$775M in Q4 (though will be excluded from adjusted EPS). Q4 revenues will be cut by about $500M.
- The sale isn't expected to change Q4 comp sales.
- After-tax net proceeds will be about $1.2B, which will be deployed over time into capital priorities, including buybacks. The deal is expected to be accretive to EBITDA and EBIT margin rates, and had 50 basis points or more to return on invested capital over time.
- This deal and more will be discussed at CVS' investor day today.
- Source: Press release
- TGT +0.9%, CVS +2.05% premarket.
- See also: CVS raises its outlook and boosts the dividend.
Nov. 30, 2015, 12:55 PM
- It's not a happy Cyber Monday for most retail chain stock on broad concerns over soft store traffic and weak pricing.
- Notable decliners include Guess (GES -5.5%), Express (EXPR -4.6%), Zumiez (ZUMZ -7%), Foot Locker (FL -1.7%), Finish Line (FINL -2.1%), Urban Outfitters (URBN -4.4%), Francesca's (FRAN -2.9%), DSW (DSW -2.7%), and Men's Wearhouse (MW -3.3%).
- Discounters are down sharply, led by Big Lots (BIG -5.4%), Gordmans Stores (GMAN -6%), and Five Below (FIVE -4.3%).
- Big box retailers Wal-Mart (WMT -1.3%), Costco (COST -1.4%), and Target (TGT -1.4%) are lower with concerns over website capabilities lingering in the background. Best Buy (BBY +1.1%) is a bit of a surprise with a 1.4% gain after reports indicate demand for Apple products is exceptionally strong.
- Specialty retailers such as The Container Store (TCS +1.6%), Party City (PRTY +1.2%), and The Michaels Companies (MIK +1.4%) are also retail outliers as consumers are seen spending a higher percentage of their disposable income close to their homes.
- Previously: Retail stocks on watch after Amazon scoops up more Black Friday sales (Nov. 30 2015)
- Previously: Department stores stocks weak on holiday sales anxiety (Nov. 30 2015)
Nov. 20, 2015, 11:47 AM
- The S&P Retail ETF (NYSEARCA:XRT) is up 1.9% with apparel and footwear stocks doing much of the heavy lifting.
- A vibrant rally in sports stocks was sparked by earnings reports and Nike. Iconix Brand (ICON +2.5%), G-III Apparel (GIII +3%), DSW (DSW +3.7%), Finish Line (FINL +3.1%), Caleres (CAL +2.2%), Genesco (GCO +3.5%), and Shoe Carnival (SCVL +1.7%) join the list reported on earlier.
- Luxury names are on the move with Kate Spade (KATE +2%), Fossil (FOSL +2.9%), Coach (COH +1.4%), and Movado (MOV +2.7%) higher.
- The beat-up mall retailer group is also recovering after results from Gap (GPS +6%) and Abercrombie & Fitch (ANF +19.4%) topped worst-case scenarios. American Eagle Outfitters (AEO +2.3%), Guess (GES +4.6%), and Pacific Sunwear (PSUN +5.4%) are notable gainers.
- Big box retailers are the laggards today. Wal-Mart, Target (TGT +0.6%), and Costco (COST +0.6%) are right at market index averages.
Nov. 18, 2015, 8:13 AM
- Target (NYSE:TGT) reports comparable-store sales increased 1.9% in Q3. The mark was a slight deceleration from the 2.4% comp in Q2.
- Traffic was up 1.4% during the quarter.
- Selling price per unit +2.5% Y/Y.
- Growth in the Style, Baby, and Kids and Wellness categories increased 2.5X the company average.
- Gross margin rate -10 bps to 29.4%.
- EBITDA margin rate +20 bps to 8.6%.
- Digital sales rose 20% to account for 2.7% of all sales.
- SG&A expenses rate -40 bps to 20.7% as cost discipline remained strong.
- RedCard penetration +130 bps to 22.3%.
- Total store count +4 Y/Y to 1,805.
- Guidance: Q4 EPS of $1.48-$1.58 expected vs. $1.54 consensus. 2015 EPS of $4.65-$4.75 forecast vs. $4.60-$4.75 prior and $4.72 consensus.
- TGT +2.62% premarket to $74.85.
Nov. 18, 2015, 8:03 AM
- Target (NYSE:TGT): Q3 EPS of $0.86 in-line.
- Revenue of $17.61B (+2.1% Y/Y) beats by $40M.
- Shares +1.8% PM.
Nov. 13, 2015, 8:31 AM
- J.C. Penney (NYSE:JCP) reported a lighter than expected Q3 loss, better than expected sales growth and raised profit estimates for the year, but shares nevertheless are -3.3% premarket as other mall-based retailers have warned about weak consumer spending.
- JCP says its Q3 comparable sales at locations open for at least a year rose 6.4% Y/Y, beating expectations, but does not raise its forecast for full-year sales, reaffirming 2015 guidance for comp store sales to increase 4%-5%.
- JCP says all merchandise divisions had positive comp sales gains over last year, with men's, home, footwear, handbags and Sephora among the top performing divisions.
- Q3 gross margin rose to 37.3% from 36.6% a year earlier, helped by improvements in clearance and promotions.
- JCP says it now expects adjusted EBITDA of $645M, up from its August estimate of $620M.
- In premarket trading among peers, JWN -20.2%, TJX -4%, M -1.3%, TGT -1.5%, KSS -2%.
Nov. 12, 2015, 5:17 PM
- Nordstrom (NYSE:JWN) -19.8% AH after missing Q3 earnings estimates by a wide margin and cutting its annual forecast.
- JWN says Q3 results were below its expectations, reflecting softer sales trends that generally were consistent across channels and merchandise categories.
- JWN lowers its guidance for FY 2016 EPS to $3.40-$3.50 from its prior outlook for $3.70-$3.80 and below the $3.77 analyst consensus estimate, and lowers its revenue view to a 7.5%-8% gain and $14.1B-$14.16B vs. $14.34B consensus.
- For Q4, JWN sees EPS of $3.30-$3.40 with sales rising 7.5%-8%, down from its previous guidance for EPS of $3.85-$3.95 on a 8.5%-9.5% sales increase.
- Q3 revenue, which includes revenue from its credit cards, gained 6% Y/Y to $3.33B, while sales at established stores rose 0.9%; inventory rose 8% Y/Y.
- JWN follows Macy’s in reporting disappointing results, underscoring a broader slowdown for department stores as consumers spend less of their money on apparel and accessories; after hours, M -1.6%, TGT -1.9%, JCP -1.4%, TJX -4%, BURL -5.3%, KSS -1.3%.
Nov. 9, 2015, 10:15 AM
- Department store stocks are off to a rough start with earnings coming into focus this week. Macy's (M -5.5%), J.C. Penney (JCP -4.2%), Kohl's (KSS -4.9%), Dillard's (DDS -3.3%), and Nordstrom (JWN -3.9%) are all sharply lower.
- Retailers Target (TGT -2.7%), Costco (COST -1.5%), TJX Companies (TJX -2.9%), The Children's Place (PLCE -4.8%), L Brands (LB -4.4%), and Wal-Mart (WMT -0.9%) are also below broad market averages with earnings reports due to roll in this week and next.
- The S&P Retail ETF (NYSEARCA:XRT) is down a crisp 2.0%.
Oct. 14, 2015, 10:57 AM
- The retail sector is reeling after Wal-Mart warns on the impact to its bottom line of higher wages.
- Target (TGT -3.8%), Macy's (M -1.1%), Costco (COST -1.9%), and Best Buy (BBY -4.2%) all took a sharp turn down right after Wal-Mart set profit guidance lower.
- Management with Wal-Mart also seemed a bit hesitant to gush over the back-to-school season and upcoming holiday period which could impact how investors look at Q4 earnings in the sector.
- Previously: Wal-Mart slides after warning on impact of higher wage levels (Oct. 14 2015)
Sep. 10, 2015, 5:43 PM
- Apparel company Cherokee (NASDAQ:CHKE) -32.8% AH after its FQ2 earnings report said Target (NYSE:TGT) would not renew its U.S. license for the Cherokee brand after it expires Jan. 31, 2017.
- CHKE says it does not expect the non-renewal to have any material impact on Cherokee Global Brands' revenue in FY 2016.
- CHKE says an agreement with TGT for the Liz Lange brand remains in place at this time.
Aug. 19, 2015, 8:21 AM
- Target (NYSE:TGT) reports comparable-store sales increased 2.4% in Q2 on transaction growth.
- The retailer's U.S. comp was higher than Wal-Mart's for the second consecutive quarter.
- Selling price per unit +3.8% Y/Y.
- Growth in the Style, Baby, and Kids and Wellness categories were 3X the company average.
- Gross margin rate +50 bps to 30.9%.
- EBITDA margin rate +100 bps to 10.9%.
- Digital sales rose over 30% during the quarter to contribute 60 bps of comp growth.
- Consolidated SG&A expenses rate -60 bps to 19.9% as cost savings factored in.
- RedCard penetration +30 bps to 22.1%.
- Total store count +4 Y/Y to 1,799.
- Guidance: Q3 EPS of $0.79-$0.89 expected vs. $0.86 consensus. 2015 EPS of $4.60-$4.75 seen vs. $4.50-$4.56 prior and $4.62 consensus.
- Previously: Target beats by $0.11, beats on revenue
- TGT +4.35% premarket to $83.79.
May 21, 2015, 1:56 PM
- Target (TGT +1.9%) trades higher after a trio of investment firms dole out cautious price target boosts on the retailer following its well-received Q1 report.
- Some analysts think that Target sits in the sweet spot of retail where consumers might be willing to increase spending.
- It's not so much flashy areas such as Lilly Pulitzer that's behind the improved trend - but the cheap chic product areas Target built its business on, notes The Minneapolis Star Tribune.
- Previously: Target beats by $0.07, revenue in-line (May 20)
- Previously: E-commerce strong for Target in Q1 (May 20)
- Previously: Target call: Narrower focus a boost to profits (May 20)
May 20, 2015, 8:15 AM
- Target (NYSE:TGT) reports comparable-store sales increased 2.3% in Q1 off of a 0.9% gain in transaction count.
- The retailer's U.S. comp was higher than Wal-Mart's.
- Selling price per unit +5.1% Y/Y, while units per transactions fell 3.6%.
- The Style, Baby, and Kids and Wellness categories showed s growth in the quarter.
- Gross margin rate +90 bps to 30.4%.
- EBITDA margin rate +110 bps to 10.5%.
- Digital sales rose over 37.8% during the quarter to contribute 80 bps of comp growth and account for 2.8% of all sales.
- Consolidated SG&A expenses rate -20 bps to 19.9%.
- RedCard penetration +110 bps to 21.5%.
- Inventory +8.9% Y/Y to $8.61B.
- Guidance: Q2 EPS of $1.04-$1.14 expected vs. $1.12 consensus. 2015 EPS of $4.50-$4.56 seen vs. $4.56 consensus.
- TGT -0.2% premarket.
May 20, 2015, 8:02 AM
- Target (NYSE:TGT): Q1 EPS of $1.10 beats by $0.07.
- Revenue of $17.1B (+2.4% Y/Y) in-line.
- Shares +1.4% PM.
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