15.60 +0.22 (1.43%)
Pre-Market: 7:20AM EDT
|Bid||15.02 x 4000|
|Ask||15.63 x 3200|
|Day's Range||15.35 - 15.66|
|52 Week Range||15.35 - 38.35|
|Beta (3Y Monthly)||0.52|
|PE Ratio (TTM)||4.68|
|Earnings Date||Nov 21, 2019|
|Forward Dividend & Yield||1.51 (9.83%)|
|1y Target Est||18.53|
Amazon and its ecommerce wave have swallowed up 10s of thousands of brick-and-mortar stores in the retail apocalypse. Retailers everywhere are scrambling to find their niche with the shifting consumer.
Macy's and J.C. Penney are struggling right now, but both management teams seem confident that they can turn things around soon.
Two Fifth Third Bank executives and leaders at Procter & Gamble Co. and Macy’s Inc. made Savoy Magazine’s 2019 list of the Most Influential Women in Corporate America.
(Bloomberg) -- Target Corp. has its work cut out for it as the mass-merchant retailer is facing difficult year-over-year same-store sales and traffic comparisons, broad macro concerns, and tariff exposures.Analysts are hoping that Target’s Deal Days, its answer to Amazon.com’s Prime Day, and digital sales strength are enough to overcome a Father’s Day weekend technology glitch that prevented customers from making purchases at its stores for a two-hour period on June 15 and unkind weather trends in the earlier part of the quarter.This quarter’s set up comes on top of a 6.5% same-store sales gain a year ago, which was the best in 13 years amid Toys ”R” Us and Babies ”R” Us U.S. store closures, and an “unprecedented” 6.4% growth in traffic.In addition, the shares are up 31% this year compared with a gain of 21% for Walmart Inc., and 16% for the S&P 500, and not far from a record high. With only 4% upside to the average 12-month price target of 21 analysts surveyed by Bloomberg, one might say shares are priced for perfection.Here’s what analysts are saying ahead of the report:Credit Suisse, Seth SigmanKey indicators including Nielsen, SpendTrend, Credit Suisse’s department store index are supportive of comparable sales in the 2.5%-3.0% range, including weakness in temperature-sensitive categories such as apparelStill expects strong digital growth, even on top of 2QFY19’s 41% growthSigman recently lowered his 2Q gross margin estimate given Walmart and Macy’s markdown comments and Target’s system-wide register outage in JuneTarget Deal Days, held in July, was likely a positive for comp. sales“With macro concerns in the backdrop, we believe it has to be a relatively clean quarter for TGT stock to work,” Sigman saidRates outperform, price target $90Telsey Advisory, Joseph FeldmanEstimates e-commerce growth of ~25%; to benefit from debut of online Deal Days, website enhancements, expansion on online products, faster fulfillmentExpects continued outperformance in baby and toys, given continued share gains following the closings of Toys ”R’ Us stores; seasonal and summer products, supported by the partnership with Vineyard Vines and the newly launched Sun Squad collection; fashion and home should benefit from new brands and products New tariffs on List 4 items should result in higher costs, but believes Target’s ability to take a portfolio approach to dealing with higher costs should offer flexibility; its current forecast covers a wide range of assumptionsRates outperform, price target $92Barclays, Karen Short“All eyes will be on TGT’s ability to ‘comp the comp’ as the company laps the benefits in the baby and toys categories” last year due to the closures of the Toys "R" Us and Babies "R" Us storesUnfavorable weather likely drove additional markdowns in seasonal categories, but this is well understood by the StreetWill be watching forecast update, traffic and ticket trends and category performance, digital growth/fulfillment cost trendsRates overweight, price target $95Bloomberg Intelligence, Jennifer Bartashus2Q comparable sales “may moderate slightly, as the company laps the closing of Toys ‘R’ Us and Babies ‘R’ Us stores and faces difficult comparisons vs. a year ago,” when total comp. sales rose 6.5%Seasonal merchandise sales may have also been dampened by poor weather early in the quarter and Target had a nationwide point-of-sale outage on June 15, disrupting in-store sales for several hoursRemodeled stores continue to generate traffic and same-store sales lifts, aiding overall performance, while store-based fulfillment is aiding online sales growth by enabling same-day services and reducing shipping time and costs Quo Vadis Capital, John ZolidisSales drivers include increased sales of private label, share capture from defunct competitors, e-commerce growth, the benefit from remodels, and a strong consumer backdropZolidis is looking for the 9th straight quarter of traffic and comp. sales growth; believes Target is taking share in e-commerce, as wellSales growth and margin stabilization should be favorable for the sharesJust the Numbers2Q adjusted EPS from continuing operations estimate $1.62; TGT forecast $1.52 to $1.722Q sales estimate $18.25 billion (range $18.04 billion to $18.47 billion)2Q comparable sales +3.00% (Consensus Metrix average of 19 estimates); TGT forecast comp. sales up low- to mid-single digits2Q gross margin estimate 30.2% 3Q adjusted EPS estimate $1.16 (range $1.11 to $1.21) FY adjusted EPS estimate $5.93; saw $5.75-$6.05TGT forecast Fiscal 2020 comp. sales up low- to mid-single digits and a mid-single digit increase in operating incomeData14 buys, 13 holds, 1 sell; average price target $90 Implied 1-day share move following earnings: 7.2% Shares rose after 6 of prior 12 earnings announcements Adjusted EPS beat estimates in 8 of past 12 quarters Shares up 2.4% in past 5 days vs SPX Index down 0.5% Shares up 3.5% in past year vs SPX Index up 1.9% TimingEarnings release expected Aug. 21 before market open Conference call websiteTo contact the reporter on this story: Janet Freund in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Catherine Larkin at email@example.com, Jim SilverFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The ratings on six principal and interest (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 6.8% of the current pooled balance, compared to 6.0% at Moody's last review. Moody's base expected loss plus realized losses is now 6.6% of the original pooled balance, compared to 5.9% at the last review.
Macy's (NYSE:M) is not just another fixture of the American mall; it's been around for over 160 years and has amassed 680 stores for its brand of affordable quality fashion. It was such a popular retailer that the company coined itself as "America's store for life."Source: Shutterstock However, that might not be the case anymore. Based on the company's second-quarter earnings report, which was released on August 14, it seems that shoppers may be moving on from their "store for life."For the second quarter, the company missed on both the top and bottom lines. Adjusted earnings per share declined a whopping 60% year-over-year to $0.28 on $5.5 billion in revenue. Analysts had expected adjusted earnings of $0.45 -- so Macy's came in way below target there -- as well as revenue of $5.6 billion. This represents a 38% earnings miss and about a 2% sales miss.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIn addition, company management slashed its forecast for full-year fiscal 2019. It now expects earnings of $2.85-$3.05 per share, versus the previously guided $3.05-$3.25 per share.Company management is trying to get back on track by discounting most of its spring inventory to make room for next season's apparel. Macy's CEO Jeff Gennette believes that this also will prepare the company for demand for the fall season.In addition, Macy's is going to continue to expand its vendors and SKUs, as well as continue with its "mobile first" strategy. Going forward, the mobile app will have more feature enhancements, such as quickly picking up orders, easier access to recommendations and offers, and even connecting customers with Macy's stylists.The company also plans to partner with thredUP, a fashion resale marketplace, in hopes to connect to millennials and the new generation who focus on sustainable fashion.Unfortunately, the company's strategy moving forward was not enough to save the stock on this earnings report. The shares opened up about 15% lower the following morning and failed to find their footing for the rest of the week.Now, if you'd used my Portfolio Grader, then you would've known to stay far away from this stock heading into earnings. And stocks like Macy's can be avoided with my Growth Investor service.Let's take a look at its Report Card below with all the details. Why the Portfolio Grader Said to Stay AwayGiven the weakening earnings momentum, sales growth and cash flow, it's no surprise that Macy's is a Strong Sell. Earnings and margin growth are also weak, so the Fundamental Grade receives a C-rating here. And the Quantitative Grade, which indicates buying pressure, comes in at an F rating, which is downright awful. Clearly, the smart money is staying far away from this retailer.Macy's isn't the only stock I'm warning you against. In fact, there are plenty of other stocks that contain red flags. That is why it's important to avoid them as much as possible, especially since there is a MAJOR market shift underway.The moves you make in the next few weeks could make or break you for the remainder of the year. So, by clicking here, you'll learn about my secret for finding the best income stocks on the planet and how to both profit and protect yourself in this tricky market.Louis Navellier is a renowned growth investor. He is the editor of four investing newsletters: Growth Investor, Breakthrough Stocks, Accelerated Profits and Platinum Growth. His most popular service, Growth Investor, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Retail Stocks: A Laggard to Avoid appeared first on InvestorPlace.
(Bloomberg Opinion) -- Look at some of the headline numbers in Kohl’s Corp.’s second-quarter earnings report, and you’d surmise that things are pretty grim for the department-store chain. Look at the text of the press release, though, and you’ll find bread crumbs of information that suggest it is turning the corner on its near-term problems.Kohl’s comparable sales fell 2.9% from a year earlier. That’s a worse result than analysts had estimated – and their views of how the quarter would shape up had already darkened significantly after the retailer slashed its annual guidance back in May following a rough first quarter. On top of that, gross margin in the second quarter slipped to 38.8% from 39.5% a year earlier, likely reflecting efforts to be more competitively priced in its home-goods department after struggling in that area earlier this year.Yet other details from Kohl’s results don’t paint such a gloomy picture. The company said comparable sales turned positive near the end of the quarter, rising 1% from a year earlier in the last six weeks of the period. CEO Michelle Gass also noted in the press release that improvement has continued into the early part of the third quarter, with back-to-school shopping off to an upbeat start.Importantly, Kohl’s – unlike some of its competitors promising an imminent turn in momentum – has offered a plausible list of catalysts for continued progress. The company is adding several prominent brands to its lineup, including shoe label Nine West and an exclusive home-goods line from HGTV stars Drew and Jonathan Scott. It will also sell Elizabeth and James, a trendy clothing label by Mary-Kate and Ashley Olsen. By beefing up both its selection of familiar national brands as well as exclusive goods shoppers can’t get anywhere else, it is taking concrete steps to improve its merchandise selection.It helps, too, that it has a new tactic for getting more shoppers to see those goods in the first place: Its recently-launched partnership with Amazon.com Inc. In July, the retailers rolled out nationwide a program in which Kohl’s brick-and-mortar stores accept customers’ returns of Amazon purchases. I am optimistic about what that arrangement can do for both companies. Kohl’s needs footsteps in its stores, and the Amazon partnership has provided just that in pilots in the Chicago and Los Angles markets. And, as I’ve noted before, it isn’t insignificant that Amazon fares better than Kohl’s with younger shoppers – potentially giving it access to a demographic that Gass has said the company needs to do a better job of reaching. Gass said in the press release that she is “confident” that added traffic from the Amazon returns program will boost sales in the second half of the year, hinting the program is at least meeting the company’s expectations in its early weeks.In some ways, Kohl’s could be said to be in worse shape than key rival Macy’s Inc., which at least managed to eke out narrowly positive comparable sales in the quarter and has guided for flat to slight growth on that measure for the year. Yet I’m still more optimistic about Kohl’s prospects for reinvention over the long haul.The Amazon returns program is a far more promising driver of visits from new customers than anything Macy’s has put forward. Also, while both retailers have embraced a strategy of becoming more productive by shrinking certain store locations rather than closing them, I currently have more confidence in Kohl’s ability to make that approach successful. Kohl’s has more physical locations overall, but they’re largely in strip centers, not in enclosed malls that are structurally challenged. I suspect that makes it easier for Kohl’s to find ways to monetize that unneeded space, something it is already doing with arrangements with the likes of Aldi and Planet Fitness. Like all department stores, Kohl’s still has much to do to prove it can thrive, not just survive, in today’s retail environment. A significant improvement in comparable sales in the third quarter – which now seems likely – would be a step in that direction.To contact the author of this story: Sarah Halzack at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Macy’s has reported steep loses in its second quarter, as many retailers are having a rough summer. Mercy For Macy’s Macy’s profits dropped 48% during its Spring quarter compared to last year, and shares have fallen 34%. The company blamed the decline on a slump in its warm weather gear, but mostly on a drop in international tourism. The company had to discount their clothes to get rid of inventory, eventually selling them at a loss. Department Sores Macy’s isn’t the only department store having a tough year. According to the Commerce Department, Kohl’s, Nordstrom, Dillards, and JCPenney all suffered losses as well. Retailers have had to deal with competition from big box retailers like Walmart, e-commerce companies like Amazon and boutique subscription services like M.M.LaFleur. But none of those are exactly new factors, and tourism experts suspect the main reason for the drop comes back to President Donald Trump’s ongoing tariff war with China. Everyone Loves A Tourist Macy’s CEO Jeff Gennette put most of the blame on the decline of tourists visiting America, and Tiffany’s CEO Alessandro Bogliolo, whose company has also taken a hit, pointed to a 25% decrease in tourism, which he noted was “even sharper for Chinese tourists.” According to the National Travel and Tourism Office, visitors from China contribute more to the economy than tourists from anywhere else, spending on average $7,000 per trip, which is more than double what people from everywhere else spend. But since last year, tourism from China has declined 5.7%. This fall is being seen as a combination of China’s ongoing economic slowdown and a response to President Trump’s tariffs, as the Chinese government has warned its citizens it’s not safe to visit America. And even stateside shoppers might be turned off if Trump’s tariff’s end up raising the price of China-produced good in Macy’s stores, though Trump is now reportedly planning to delay the tariffs until after Christmas. Stay Mobile While in store sales have been tough for Macy’s, Gennette points out that sales on its mobile app and buy online and pick up in the store service remain healthy. -Michael Tedder Photo: Brian Snyder/ REUTERS
What's Next for Walmart Stock and a Target earnings preview on the latest episode of the Full-Court Finance podcast from Zacks Investment Research.
1-800-Flowers.com, Macy???s, Power Integrations, NeoPhotonics and Taiwan Semiconductor highlighted as Zacks Bull and Bear of the Day
The stock market fell in volatile fashion amid China trade news and the first inverted yield curve since 2007. Walmart, Cisco, Macy's, GE were big movers.
What shape is the consumer in? Were Macy's Inc (NYSE: M) poor earnings report indicative of the retail environment or should investors look instead at Walmart Inc (NYSE: WMT)? Walmart is a "great barometer" to gauge the state of the consumer, Oppenheimer analyst Brian Nagel said Friday on CNBC's "Squawk Box" segment.