Today’s Research Reports on Stocks to Watch: Sears Holdings and Dollar Tree
NEW YORK, NY / ACCESSWIRE / June 1, 2018 / Both Sears and Dollar Tree were big losers in the retail space in Thursday trading. Sears shares tumbled after disappointing first quarter results and the announcement of more store closures. Dollar Tree also saw losses after posting its own disappointing quarterly report for the first quarter and a weak outlook.
RDI Initiates Coverage on:
Sears Holdings Corporation
https://rdinvesting.com/news/?ticker=SHLD
Dollar Tree, Inc.
https://rdinvesting.com/news/?ticker=DLTR
Sears Holdings Corporation shares crumbled in Thursday trading, closing the day down 12.46% at $2.81 on about 3.4 million shares traded. The struggling retailer had some bad news along with disappointing earnings that didn't sit well with investors. Sears announced that it would be closing an additional 72 stores this year as sales decrease and losses continue to grow. The company, which operates both Sears and Kmart, said that it has found around 100 stores that are not seeing a profit and that many of them will be closed soon. For the first quarter, Sears saw a loss of $3.93 a share with revenue sinking 30 percent from a year ago. Same-store sales saw a decrease of 11.9 percent. According to Sears CFO, Rob Riecker, the stores are "a critical component in our transformation." According to Riecker, the company must close poor performing stores and "focus on our best stores, including our newer smaller-store formats." Bankrate.com senior economic analyst Mark Hamrick remarked, "The demise of Sears has felt like a prolonged, drip, drip, drip as evidenced by the string of quarterly sales numbers. Essentially, it has been injury by a thousand cuts, whether by failing to staff stores to provide customers with good experiences or by failing to stock better quality merchandise in its stores."
Access RDI's Sears Holdings Corporation Research Report at:
https://rdinvesting.com/news/?ticker=SHLD
Dollar Tree, Inc. shares closed down 14.28% at $82.59 on about 18.4 million shares traded on Thursday. It was a disappointing first quarter earnings report and weak guidance for the year that sent shares of Dollar Tree lower yesterday. The company reported earnings per share of $1.19 for the quarter. Though this was higher than the 98 cents Dollar Tree reported in the year ago quarter, it was still behind the $1.23 that analysts had been expecting. Net income of $160.50 million was also dragging behind the $200.50 million posted a year ago. Revenue at $5.55 billion was ahead of the $5.29 billion that the company saw in the year ago period but was still behind the $5.57 billion that analysts were waiting for. Looking ahead, Dollar Tree expects earnings per share in the range of $4.80 and $5.10 for full year 2018. Previously the company had expected earnings per share in the range of $5.25 to $5.60. Analysts expectations are of $5.66 to $6.08 regardless.
Access RDI's Dollar Tree, Inc. Research Report at:
https://rdinvesting.com/news/?ticker=DLTR
Our Actionable Research on Sears Holdings Corporation (NASDAQ: SHLD) and Dollar Tree, Inc. (NASDAQ: DLTR) can be downloaded free of charge at Research Driven Investing.
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