Tue, Nov. 22, 12:23 PM
- Home improvement stocks and retailers tied to home purchasing are racing higher after an unexpectedly strong report on U.S. existing home sales was released by the National Association of Realtors this morning. Housing demand was strong despite higher prices and lower inventory.
- Home Depot (NYSE:HD) +1.70% to $130.40 vs. a 52-week trading range of $109.62 to $139.00.
- Lowe's (NYSE:LOW) +2.52% to $71.15 vs. a 52-week trading range of $62.62 to $83.65.
- Lumber Liquidators (NYSE:LL) +7.64% to $18.32 vs. a 52-week trading range of $10.01 to $20.10.
- Tile Shop Holdings (NASDAQ:TTS) +1.03% to $3.91 vs. a 52-week trading range of $3.53 to $4.42.
- Restoration Hardware (NYSE:RH) +4.88% to $36.72 vs. a 52-week trading range of $24.75 to $94.88.
- Pier 1 Imports (NYSE:PIR) +2.57% to $6.00 vs. a 52-week trading range of $3.73 to $7.70.
- Bed Bath & Beyond (NASDAQ:BBBY) +1.69% to $45.60 vs. a 52-week trading range of $38.60 to $55.62.
- Haverty Furniture (NYSE:HVT) +1.87% to $21.75 vs. a 52-week trading range of $16.57 to $24.54.
- Williams-Sonoma (NYSE:WSM) +1.96% to $54.62 vs. a 52-week trading range of $45.96 to $65.42.
- Boise Cascade (NYSE:BCC) +3.95% to $22.35 vs. a 52-week trading range of $13.80 to $31.85.
Fri, Nov. 18, 11:43 AM
- Williams-Sonoma (WSM -0.8%) drifts lower after a mixed Q3 report. Comparable sales at Pottery Barn (-4.6%) and PBTeen (-10.9%) disappointed during the quarter.
- Analysts and investors have a sharp focus on the holiday quarter guidance from the company.
- Williams-Sonoma expects Q4 revenue of $1.57B to $1.65B vs. $1.64B and Q4 EPS of $1.45 to $1.55 vs. $1.59 consensus.
- Previously: Williams-Sonoma beats by $0.02, misses on revenue (Nov. 17)
Thu, Nov. 17, 4:17 PM
Thu, Nov. 17, 11:10 AM
- A big jump in housing starts in October to a seasonally-adjusted level of 1.323M is bringing some buyers into select retail stocks loosely associated with home spending.
- Making the cut are Home Depot (HD +1.6%), Kirkland's (KIRK +2.2%), Williams-Sonoma (WSM +2.2%) and The Container Store (TCS +2.2%), Haverty Furniture (HVT +1.2%) and La-Z-Boy (LZB +0.4%).
- Previously: Housing starts top expectations (Nov. 17)
Wed, Nov. 16, 5:35 PM
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, Sep. 19, 10:59 AM
- Williams-Sonoma (WSM +1.4%) backs prior guidance for FY16 EPS of $3.45 to $3.55. The mid-point of the company's range is ahead of the consensus estimate of $3.50.
- The company's three-year outlook is for revenue growth in the mid to high single-digits and EPS growth at a double-digit to mid-teens pace.
- Management expects to pay out 35% to 49% of net income in dividends.
- Williams-Sonoma presentation slides (.pdf)
Fri, Sep. 16, 5:01 PM
Mon, Aug. 29, 1:51 PM
- Tracking data from NPD Group indicates Williams-Sonoma (WSM +1.2%) doesn't have as broad of reach as some peers.
- NPD reports that over the last 12 months only 1% of U.S. consumers purchased a product from the chain, compared to 35% at Bed, Bath & Beyond and 5% at Pier 1 Imports.
- Shares of WSM are about 1.5% higher than where they stood a week ago in a bouncy period of trading on either side of earnings.
- Previously: Williams-Sonoma EPS in-line, misses on revenue (Aug. 24)
- Previously: Williams-Sonoma cuts Q3, FY 2017 guidance (Aug. 24)
Sat, Aug. 27, 11:34 AM
- Many retailers are tightening up this year by reducing their store count or converting more locations to e-commerce fulfillment centers. Analysts note that although the strategy will lower revenue, over time the group should see improved bottom lines as underperforming stores are cut back and online efficiency improves. Amid the skittish trading with chain store stocks there could be some value deals.
- Store chains that currently trade with a PE ratio below 15 and offer a dividend yield of at least 2% include: TLRD, BKE, SMRT, GPS, AEO, CHS, CATO, TGT, KSS, M, HVT, WSM, PIR, BKS, OUTR, ODP, SPLS.
- ETFs: XLY, XRT, VCR, RTH, RETL, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, JHMC, CNDF.
Wed, Aug. 24, 6:19 PM
- Williams-Sonoma (NYSE:WSM) wavers between gains and losses AH after reporting in-line Q2 earnings and revenues but guiding Q3 earnings below consensus and lowering its outlook for FY 2017.
- WSM says total Q2 comparable brand revenue growth was 0.6%, falling 4.8% Y/Y for Pottery Barn - the company’s largest brand by revenue - while coming in flat at Williams-Sonoma and jumping 15.8% at West Elm; merchandise inventories at the end of Q2 fell 6.6% to $963M from $1.03B at the end of Q2 2015.
- Saying it is feeling the effects of “a more cautious consumer," WSM cuts its 2017 sales and profit guidance, seeing EPS of $3.35-$3.55 vs. analyst consensus of $3.57 and its prior outlook of $3.50-$3.65, with revenues of $5.075B-$5.225B vs. $5.22 consensus and prior guidance of $5.15-$5.25B and 1%-4% growth in comparable brand revenue vs. previous guidance of 3%-6% growth.
- For Q3, WSM forecasts EPS of $0.75-$0.80 vs. $0.81 consensus, revenues of $1.235B-$1.285B vs. $1.28B consensus, and comparable brand revenue growth of 0-4%.
Wed, Aug. 24, 4:15 PM
Tue, Aug. 23, 5:35 PM
Wed, Aug. 17, 11:16 AM
- Soft earnings reports from Target, Lowe's, and Staples are tainting the retail sector today.
- A loose theme among the trio is that they are feeling the impact of general store traffic pressure on one front and under-performing Amazon on the e-commerce side (or Home Depot in the case of Lowe's).
- Notable movers include Office Depot (ODP -7%), Pier 1 Imports (PIR -2.7%), Haverty Furniture (HVT -1.1%), Sears Holdings (SHLD -6.5%), Stage Stores (SSI -3%), Nordstrom (JWN -2.4%), Tilly's (TLYS -0.8%), Zagg (ZAGG -2.7%), Party City (PRTY -1.3%), J.C. Penney (JCP -4.4%), Restoration Hardware (RH -4.1%) Bed Bath & Beyond (BBBY -1.9%), Williams-Sonoma (WSM -2.8%), and Kohl's (KSS -2.3%),
- Looking ahead, Wal-Mart (WMT -0.3%) reports earnings tomorrow before the bell. The same-store sales bar is relatively low after the company guided for a 1% gain for U.S. SSS and with the consensus estimate of analysts even lower at +0.9%. Perhaps more important than Q2 numbers will be the comments from Wal-Mart management on the Jet.com integration and the impact of higher base wages.
Fri, Jul. 29, 9:23 AM
- Household spending by consumers increased 4.2% in Q2 to mark the best pace for the category since late in 2014.
- The strong read on consumer spending contrasts with the tightening by businesses amid Brexit fears, F/X pain, and political jitters.
- Retail ETFs trail broad stock market averages on the year after a May swoon, although most of the damage has been from the mall sector. Companies with a thriving e-commerce business and/or high mix of U.S. sales have held up.
- Despite the painful headline Q2 GPD miss today, the underlying resiliency shown by consumers could bode well for a variety of retailers such as Amazon (NASDAQ:AMZN), Target (NYSE:TGT), Wal-Mart (NYSE:WMT), Costco (NASDAQ:COST), Kroger (NYSE:KR), Lululemon (NASDAQ:LULU), Dollar General (NYSE:DG), PriceSmart (NASDAQ:PSMT), and Williams-Sonoma (NYSE:WSM) to name a few (add your own ideas in the comments).
- 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
Wed, Jun. 22, 9:40 AM
- Restoration Hardware (RH +2.8%) spikes after BB&T says Williams-Sonoma (WSM +1.4%) may acquire the chain at $50 per share. A deal would be accretive to WSM's earnings at a rate of 16% to FY17 EPS and 25% to FY18 EPS, according to a rough estimate.
- Restoration Hardware slipped to a 52-week low of $26 yesterday.