MarketPulse: Dollar Tree, Abercrombie Buck Bearish Day for Retailers
Investing.com - Dollar Tree and Abercrombie & Fitch rallied Thursday, even as a sea of red washed over retailers, keeping the broader consumer discretionary sector on the back foot.
Discount retailer Dollar Tree (NASDAQ:DLTR) soared 5%, shrugging off mixed third-quarter results as earnings and revenue topped estimates, but same-store sales and fourth-quarter guidance fell short.
Same-store sales rose 1% and were up 2.3% for Dollar Tree on a constant currency basis. But comparable sales for the Family Dollar brand were down by 0.4%.
The subdued sales print comes as the retailer struggles to stay popular in an e-commerce era where consumers favor clicks over bricks and turn to more upscale retailers like Target (NYSE:TGT).
Dollar Tree forecast fourth-quarter earnings in the range of $1.86 to $1.95, below consensus of $2.00. Fourth-quarter revenue guidance of $6.1 billion to $6.21 billion fell short of Wall Street estimates for $6.23 billion.
Abercrombie & Fitch's (NYSE:ANF) third-quarter results beat on both the top and bottom lines, underpinned by growth of its Hollister label, sending its shares 19% higher.
Same-store sales at Hollister were up 4%, while those at Abercrombie were up 1%, pushing same-store sales for the group 3% higher, topping Wall Street estimates for a 1.6% rise.
"We had a solid start to the holiday season," CEO Fran Horowitz said in a statement.
Elsewhere, Walmart (NYSE:WMT) fell 0.5% even as Bank of America Merrill Lynch said the supermarket giant's e-commerce growth accelerated to 43% in the third quarter, outpacing that of e-commerce behemoth Amazon (NASDAQ:AMZN).
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