Wed, Apr. 1, 8:38 AM
- Discounters could face some increased pricing competition from Wal-Mart (NYSE:WMT) after the retail giant ratcheted up pressure on suppliers to reduce prices.
- The news from Bentonville might also create some headaches for large consumer products sellers such as Procter & Gamble (NYSE:PG) and Kimberly-Clark (NYSE:KMB) which have struggled with pushing back against Wal-Mart's formidable leverage.
- On margin watch: Dollar Tree (NASDAQ:DLTR), Family Dollar (NYSE:FDO), Dollar General (NYSE:DG), Fred's (NASDAQ:FRED), Big Lots (NYSE:BIG), Five Below (NASDAQ:FIVE).
- Previously: Wal-Mart steps up pressure on suppliers to slash prices
Mon, Mar. 9, 10:36 AM| Comment!
Fri, Mar. 6, 6:52 AM
- Big Lots (NYSE:BIG) reports comparable-store sales rose 2.9% in Q4.
- Gross margin rate increased 200 bps to 40.8%.
- SG&A expense rate +90 bps to 29.2%.
- Operating margin rate grew 100 bps to 9.6%.
- Inventory -6.92% to $851.67M.
- The company expects to return ~$240M to shareholders in the form of share repurchase and four dividend payments in FY2015.
- FQ1 Guidance: Comparable-store sales: +1% to +2%; Diluted EPS: $0.55 to $0.60.
- FY2015 Guidance: Total sales: ~flat; Comparable-store sales: to increase in the low single digit range; Diluted EPS: $2.75 to $2.90 (+12% to +18%); Cash flow: ~$175M;
- BIG -0.06% premarket.
Fri, Mar. 6, 6:02 AM
Fri, Mar. 6, 5:54 AM
Thu, Mar. 5, 5:30 PM
Thu, Feb. 19, 1:49 PM
- If Target (NYSE:TGT) were to match Wal-Mart's employee wage increases it works out to about an extra $560M in annual compensation, according to some rough analysis from Hedgeye.
- Cowen & Company is of a like mind, noting other retail companies may feel pressure to adjust their wage structure.
- Retail watch: Target is down 1.20% on the day, while Gordmans Stores (NASDAQ:GMAN) is off 1.1% and Big Lots (NYSE:BIG) is down 0.7%. Gap (NYSE:GPS) is +0.9% with hourly wage increases already fired off by the company last year.
- Previously: Slump continues at Five Below
- Previously: Target lower after Wal-Mart adjusts wage structure
Mon, Jan. 12, 11:17 AM
Fri, Jan. 9, 8:35 AM
- The House passed a bill to redefine a full-time worker under the Affordable Care Act to 40 hours a week from 30 hours.
- The legislation could impact millions of workers as companies adjust hours and employee policies around the issue.
- The measure was passed by a vote total of 252-172.
- Senate Majority Leader Mitch McConnell has indicated the bill will see a vote in his chamber.
- The White House has threatened to veto the bill on its view it will reduce the number of workers covered by healthcare.
- Most industry groups within the restaurant and food industry have issued support for the legislation.
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Sat, Jan. 3, 7:51 PM
- The intense competition in retail over free shipping policies is expected to bring some pain to Q4 margins as big box and e-commerce firms scrap for market share, warn analysts.
- ComScore reports that free delivery on online purchases rose to 68% in 2014, up from 44% last year.
- Amazon (NASDAQ:AMZN): 2014 shipping costs were up 32% through Q3. That mark comes before a holiday season in which the company says it saved customers a mere $2B in shipping fees.
- Wal-Mart (NYSE:WMT): The Bentonville giant has already warned investors it will spend heavily on e-commerce and fulfillment center expansion as it eyes +30% growth in online sales. The company may have difficulty dialing back its free delivery policies, say industry insiders.
- Target (NYSE:TGT): Wolfe Research projects a 1% shift in Target sales to e-commerce cuts into the firm's profit margin by 5 bps.
- What to watch: Online sales rose 16% in Q3 vs. 4% for broad retail, a differential that is expected to have widened in Q4. Retailers with a sharp shift in mix to online could have trouble hitting consensus EPS estimates.
- Related stocks: BBY, DKS, CAB, SPLS, TJX, BIG.
- Related ETFs: XLP, XLY, VDC, XRT, VCR, RTH, RETL, FXG, IYK, FXD, IYC, FDIS, RHS, SCC, FSTA, UCC, PMR, UGE, RCD, PEZ, PSCD, SZK
Dec. 24, 2014, 2:40 PM
Dec. 5, 2014, 12:50 PM
Dec. 5, 2014, 9:10 AM
Dec. 5, 2014, 7:02 AM
Dec. 5, 2014, 6:51 AM
- Big Lots (NYSE:BIG) reports comparable-store sales rose 1.4% in Q3.
- Gross margin rate -40 bps to 38.9%.
- SG&A expense rate -30 bps to 36.0%.
- Inventory -13.2% to $1,075B.
- Guidance: 2014 EPS of $1.75 expected. The company backs prior guidance for comp sales growth in low single digits.
- BIG -0.9% premarket.
Dec. 5, 2014, 6:13 AM
BIG vs. ETF Alternatives
Big Lots Inc operates as a broadline closeout retailer in the United States. It offers products under six merchandising categories: Food, Consumables, Soft Home, Hard Home, Furniture & Home Decor, Seasonal, and Electronics & Accessories.
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