Thu, Jun. 2, 3:31 PM
- Wal-Mart (WMT +0.5%) is only six to nine months away from using drones for different business functions such as inventory management, according to top execs.
- The company is running advanced tests on drones that can alerts users to low inventory levels and items stocked incorrectly.
- The use of drones at large distribution centers and corporate campuses is seen as more practical than mobilizing a drone army for actual deliveries to customers.
Fri, May 27, 7:53 AM
- A strong Q1 report from Big Lots (NYSE:BIG) adds more confirmation that pockets of strength exist in retail at the right price points. After a rough start to the retail earnings season, Wal-Mart (NYSE:WMT) surprised last week on the upside and the dollar stores had their say yesterday
- Big Lots is already up 16% YTD, while Dollar General (NYSE:DG) is 22% higher and Dollar Tree (NASDAQ:DLTR) has gained 14%. Compares those audacious returns to the YTD slides of former mall chain standouts such as Gap (NYSE:GPS) -27%, L Brands (NYSE:LB) -30%, and Macy's (NYSE:M) -10% which are more in the direct line of fire of Amazon.
- In an interesting twist, it turns out those thrifty millennials who are MIA at malls are behind some of the strength in the discounter sector.
- Dollar General CEO Todd Vasos tipped on the company's earnings call (transcript) yesterday that millennials make up 12% of traffic and 24% of sales -marks that may have caught a few analysts by surprise.
- Related ETFs: XLY, XRT, VCR, RTH, RETL, FXD, FDIS, RCD, PMR, CNDF
Thu, May 19, 9:51 AM
- Wal-Mart (NYSE:WMT) holds on to most of its post-earnings premarket gain with shares on track to have their biggest day since 2008.
- A couple of retail reads from Bentonville are that some of the concerns over labor wage increases may have been overblown. Wal-Mart has said often that with higher wages also comes improved efficiency which may have played out a bit in Q1. Shrink fell back and inventory was well-managed.
- Wal-Mart is also much more of a force in groceries than apparel which means that the trend toward tepid clothes buying by consumers doesn't hit it to the same degree as it does with Target (8% of sales vs. 19% at TGT via CNBC's Courtney Regan). As part of its prerecorded conference call, Wal-Mart announced it's adding 9 new markets to the grocery pickup program.
- On an even broader scale, Wal-Mart management didn't throw out any alarming adjectives to describe the U.S. consumer like some other chain stores execs. The tone is steadier and more confident on the full year.
- Retail ETFS are higher on the day after the Wal-Mart report.
- Wal-Mart prerecorded earnings call (no Q&A).
- Previously: Wal-Mart spikes after earnings top estimates (May 19)
- Related ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, RCD, PMR, UGE, SZK
Thu, May 19, 9:18 AM
Thu, May 19, 7:16 AM
- Wal-Mart (NYSE:WMT) reports U.S. comparable-store sales were 1.0% higher in FQ1. Traffic was up 1.5%. E-commerce contributed 20 bps to the gain in comparable sales.
- Operating income fell 7.1% Y/Y to $5.275B.
- International sales -7.2% Y/Y to $28.08B . Operating income +8.8% to $1.16B (+22% ex-F/X).
- Revenue at Sam's Club +1.0% to $13.61B. Traffic was -0.2%. Operating income -3.3% to $413M.
- Management notes that an "improved" inventory position helped with cash flow during the quarter.
- Guidance: The company expects FQ2 EPS of $0.95 to $1.08 on a +1% comp.
- WMT+8.25% premarket to $68.40 to return the level where shares traded about a week ago.
- Previously: Wal-Mart beats by $0.10, beats on revenue (May 19)
Thu, May 19, 7:04 AM
Wed, May 18, 5:30 PM
Wed, May 18, 9:15 AM
- Retail stocks are poised for some volatile action after Target warns on an "increasingly volatile" consumer in the U.S. Shares of Target were down as much as 9% off of disappointing Q1 numbers and guidance.
- Though the Commerce Department's read on April retail sales came in positive, Wolfe Research isn't so sure that major chains are getting the dollars anticipated.
- "The climate appears to have deteriorated to a certain degree across retail from late March and into April," says analyst Scott Mushkin.
- The biggest name in all of retail reports earnings tomorrow out of Arkansas. Shares of Wal-Mart (NYSE:WMT) are down 3.38% in premarket action with anxiety ratcheted up another notch.
- Costco (NASDAQ:COST) is down 2.65% in early action and J.C. Penney (NYSE:JCP) is off 1.4%.
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, FDIS, RCD, PEZ, PMR, UGE, SZK.
Mon, May 16, 9:44 AM
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, 9:59 AM
- A strong report on retail sales isn't working magic with shares of some of the larger U.S. chain stores.
- Wal-Mart (WMT -2.4%), Target (TGT -2.1%), Macy's (M -1.8%), Best Buy (BBY -1.3%), Walgreen Boots Alliance (WBA -0.4%), TJX Companies (TJX -1.4%), and Costco (COST -0.6%) are some of the names taking their cues from the steady roll of disappointing Q1 earnings reports.
- An intriguing pullout from the retail sales breakdown for April is also a potential factor. Non-store retailers (think Amazon (NASDAQ:AMZN)) increased sales by over 10% Y/Y during the month to easily top all other categories.
- Previously: Retail sales: Consumers spending, just not where they used to (May 13)
Thu, May 12, 8:06 AM
- Wal-Mart (NYSE:WMT) plans to become more aggressive in competing with Amazon by building out its regional delivery network and adding more e-commerce warehouses.
- The strategy from Bentonville is to use scale to eventually reduce the cost per package the company pays. In a potentially important twist, sources tell the WSJ that regional delivery carriers will be tasked to carry more packages (heads up FedEx (NYSE:FDX)) for Wal-Mart.
- The retail giant will also test a two-day shipping subscription service called ShippingPass to potentially challenge Amazon Prime. ShippingPass will cost customers $49 per year.
- WMT -0.36% premarket to $66.17.
Wed, May 11, 10:54 AM
- Retail stocks are getting hammered this week up and down the sector on deep concerns over consumer spending at chain stores.
- Over the last few sessions Gap has lost 18%, Urban Outfitters is down 10%, and L Brands is off 12%. Discounters and high-end names alike are lower.
- In today's action, retail heavyweights such as Wal-Mart (WMT -4.3%), Target (TGT -4.1%), Macy's (-12%), Staples (-17%), and Best Buy (-3.6%) are taking their lumps.
- The retail sell-off isn't encapsulating one of the largest retailers in the world as Amazon (AMZN +1%) cruises to yet another all-time with concerns over foot traffic not in the mix.
- An interesting play on Amazon is the spanking-new Global X Millennials Thematic ETF (NASDAQ:MILN) which has the Seattle e-commerce company as its number one holding. There are only 48 people following the ETF on Seeking Alpha, but contributor Aaron Faulkner is already in with a breakdown.
Tue, May 10, 4:12 PM
- Wal-Mart (NYSE:WMT) files a lawsuit against Visa (NYSE:V) in which it accuses the payments company of preventing it from requiring debit card users to enter a PIN number when using a chip-enabled card.
- Visa collects more from Wal-Mart when customers sign for their chip-based debit card transactions.
- Visa and Wal-Mart have tangled frequently in different lawsuits over the last several years.
Tue, May 3, 7:28 AM
- RBC Capital Markets initiates coverage on Wal-Mart (NYSE:WMT) with an Underperform rating.
- "Walmart is undergoing a two-year, 15%-20% downward reset in its earnings due to competitive pressures and accelerated investments in technology and labor," reads the RBC note,
- The investment firm sets a 12-month price target of $66 on the Bentonville retail giant.
- Wall Street scorecard on Wal-Mart: 4 Sell Ratings, 21 Hold Ratings, 4 Buy Ratings, 1 Strong Buy Rating.
- WMT -0.36% premarket to $67.35.
- Now read Why Did Wal-Mart Fall By 3%?
Mon, May 2, 7:55 AM
- April monthly performance was: +0.42%
- $0.19 in dividends were paid in April
- Top 10 Holdings as of 3/31/2016: Exxon Mobil Corporation (XOM): 3.51%, AT&T Inc (T): 3.5%, Microsoft Corp (MSFT): 3.01%, Apple Inc (AAPL): 2.86%, Verizon Communications Inc (VZ): 2.85%, General Electric Co (GE): 2.34%, Chevron Corp (CVX): 2.27%, Johnson & Johnson (JNJ): 2.27%, Procter & Gamble Co (PG): 1.95%, Wal-Mart Stores Inc (WMT): 1.85%
Wal-Mart Stores, Inc. operates retail stores in various formats around the world. The company operates its business through three reportable segments: Walmart U.S., Walmart International and Sam's Club. The Walmart U.S. segment includes the company's mass merchant concept in the U.S., operating... More
Industry: Discount, Variety Stores
Country: United States
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