37.88 -0.36 (-0.94%)
After hours: 5:55PM EDT
|Bid||37.88 x 800|
|Ask||38.09 x 1200|
|Day's Range||37.05 - 38.89|
|52 Week Range||17.41 - 41.99|
|PE Ratio (TTM)||7.11|
|Earnings Date||Nov 14, 2018|
|Forward Dividend & Yield||1.51 (4.19%)|
|1y Target Est||36.23|
After a week of retail earnings highlighted by the triumphs of TJX and Kohl's contrasted with the stumbles of Macy's and J.C. Penney, an appeal to a younger demographic of consumers appears to be a good barometer of success. Despite its slight drop this morning, Kohl's shares rose 1.7% on Tuesday after market close and gained over 100% in the past year, while TJX built on an already great calendar year by gaining nearly 5% in trading today after its earnings release. "We are particularly pleased that we have been attracting a significant share of millennial and Gen Z shoppers among our new customers at each of our divisions," TJX Companies CEO Ernie Herrman said.
Off-price retail giant Kohl’s (NYSE:KSS) recently reported stellar second-quarter numbers which beat top- and bottom-line expectations and included a lift to the full-year guide. KSS stock traded slightly down early on the news, though it has since recovered. Bigger picture, Kohl’s strong second-quarter report affirms that retail is back.
Back in March I began talking about the strength in consumer stocks, particularly brick-and-mortar names. Of course, most financial analysts had written off the brick and mortars as victims of the Amazon (NASDAQ:AMZN) era and the lingering impact on consumer behavior in the aftermath of the Great Recession.
TJX Companies (TJX) stock rose over 5% in pre-market trading hours on August 21. The stock rose 4.2% as of 11:29 AM EST in reaction to the company’s better-than-expected results for the second fiscal quarter of 2019. The company’s sales of $9.3 billion in the second fiscal quarter of 2019 beat analysts’ expectation of ~$9.0 billion. TJX Companies’ EPS grew 37.6% on a year-over-year basis.
Equity markets have been trading more so on fads, memes and headlines then on company fundamentals lately. Management must deliver amazing forward guidance, or else the short-term reaction to the company’s stock is harsh. Case in point was the reaction to a recent Macy’s (NYSE:M) earnings report where the stock fell 15% without any major piece of bad news.
NEW YORK, NY / ACCESSWIRE / August 21, 2018 / Retailers Macy's and TJX Companies closed in the green on Monday. Macy's saw a nice bounce post its collapse last week after earnings. TJX Companies hit a new high as traders awaited the company's second quarter financial results.
While Dillard's stock is a lot cheaper than it was a week ago, it still doesn't look like a bargain for investors.
The department store chain delivered profit and revenue beats for the second quarter, plus higher guidance. But the stock sank as investors reassessed the retailer's longer-term performance.
JCPenney’s (JCP) net sales fell 7.5% on a YoY (year-over-year) basis to $2.76 billion in the fiscal second quarter, which ended on August 4. The company’s fiscal second-quarter revenue (made up of retail net sales and credit income) fell 7.8% to $2.83 billion and missed analysts’ estimate of $2.86 billion. JCPenney’s 7.8% revenue fall in the quarter was steeper than its 4.1% fall in the fiscal first quarter.
JCPenney’s (JCP) dismal performance in the fiscal second quarter, which ended on August 4, triggered downward revisions to its price target by many analysts. The mid-tier department store chain disappointed investors with a significant fall in its fiscal second-quarter net sales and a poor outlook.
Macy’s (NYSE:M) second quarter results, reported on Tuesday, indicate that its positive catalysts remain intact. Investors should buy M stock, as these catalysts should continue to boost its results going forward, while its valuation is extremely attractive and lower than that of many brick-and-mortar retailers. The sharp drop in Macy’s stock on Wednesday was irrational and has created an extremely attractive entry point.
Despite reporting solid earnings and raising guidance on Wednesday, Macy's Inc. (NYSE:M) was punished by investors, who seemed to shrug off clear signs the company is reaping rewards from its aggressive revamping and adaptation strategy. Warning! GuruFocus has detected 2 Warning Sign with M. Click here to check it out. Macy's reported second-quarter earnings of 70 cents per share, beating analysts' expectations of 51 cents per share, and revenue of $5.57 billion, topping the $5.5 billion analysts had anticipated.
Macy’s (M) reported improved gross and operating margins in the fiscal second quarter despite lower sales. Macy’s gross margin expanded 80 basis points to 40.4% in the fiscal second quarter. Efficient inventory management helped the company improve its gross margin in the fiscal second quarter.
Macy's and Walmart both had good news for investors this week, but Walmart's shares rallied 9.3 percent while Macy's sank 16 percent. Before Macy's reported earnings Wednesday, its shares had more than doubled over the last year. Walmart WMT and Macy's M both had exceptionally good news for investors when they released their second-quarter earnings this week.
Although Macy’s fiscal second-quarter sales of $5.57 billion exceeded analysts’ estimate of $5.55 billion, its stock declined 1.1% year-over-year. Nordstrom (JWN), on the other hand, delivered impressive sales growth of 7.1% to $3.98 billion in the fiscal second quarter. Macy’s adjusted EPS grew 52.2% to $0.70 in the fiscal second quarter and beat analysts’ expectation of $0.51.
Wall Street analysts revised their price target for Macy’s (M) after the company reported its fiscal second quarter results on August 15. Although Macy’s beat analysts’ expectations, investors weren’t happy with the decline in the company’s fiscal second-quarter sales after two consecutive quarters of sales growth. Macy’s stock declined 15.9% on August 15 but recovered 1.9% on August 16.
Many investors such as Warren Buffett have made fortunes buying stocks at the bottom. Succeeding like Mr. Buffett has in buying stocks at the bottom requires knowing the difference between a good company facing challenges or a firm in actual financial trouble.
Moody's Investors Service, ("Moody's") has affirmed the ratings on five classes and downgraded the ratings on six classes in COMM 2012-CCRE4 Mortgage Trust, Commercial Mortgage Pass-Through Certificates, ...
Nordstrom (JWN) brought some relief for department store investors with its strong sales growth numbers after Macy’s (M) and JCPenney (JCP) disappointed investors with lower sales. Nordstrom beat analysts’ revenue and earnings expectations and also raised the guidance for fiscal 2018. Nordstrom stock soared 9.0% in after-hours trading on August 16.
The ratings on six P&I classes were affirmed because the transaction's key metrics, including Moody's loan-to-value (LTV) ratio, Moody's stressed debt service coverage ratio (DSCR) and the transaction's Herfindahl Index (Herf), are within acceptable ranges. Moody's rating action reflects a base expected loss of 4.5% of the current pooled balance. Moody's base expected loss plus realized losses is now 4.4% of the original pooled balance.
Macy’s reported an earnings beat but says changes to the calendar impacted same-store sales in the second quarter.