As earnings season wraps up, some key retailers will be reporting holiday-quarter results on Tuesday. Before the opening bell department store Kohl’s (KSS) and big-box retailer Target (TGT) will report. Ross Stores (ROST) and Urban Outfitters (URBN) will release earnings after the market close.
Kohl’s reported weaker-than-expected holiday same-store sales, a key metric for the retail industry, of 1.2%. Analysts polled by Bloomberg expect Kohl’s to report earnings of $2.18 per share on $6.58 billion in revenue for the fourth quarter. Same-store sales during the quarter are expected to have fallen 0.05%.
Despite the bleak outlook for Kohl’s, analysts are predicting a strong holiday-quarter for Target. The big-box retailer reported better-than-expected same-store sales growth of 5.7% during the November to December holiday period. Analysts are already forecasting solid same-store sales, and thus will be paying more attention to gross margins and how Target has positioned itself against competitors like Walmart (WMT) and Amazon (AMZN).
“Our positive view on Target has been based on the evolving market share story, as well as the prospects of stabilizing profitability as it starts to leverage the investments made over the last few years,” Credit Suisse analyst Seth Sigman wrote in a note to clients on Monday. “In a sea of disruption, where few retailers have really been able to stabilize margins, we believe that there is value in this stock, as TGT continues to demonstrate share gains, outside of just toys.”
Target is expected to report earnings of $1.53 per share on $$22.95 billion in revenue, according to analysts surveyed by Bloomberg.
Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.
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