|Bid||0.00 x 900|
|Ask||0.00 x 3200|
|Day's Range||50.76 - 51.43|
|52 Week Range||38.69 - 52.96|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.35%|
As the busy holiday season fast approaches, some of the biggest retailers are feeling a shortage of holiday workers to fill the spots.
Stocks are mixed today as trade fears linger and technology struggles. We are at the start of what is historically one of the toughest months for stocks. Yahoo Finance's Seana Smith and Dion Rabouin talk with Jason Browne, Chief Investment Strategist at FundX Investment Group.
Twin brothers Alex and Mike Faherty grew up surfing the New Jersey shore, but left their quiet beach town for big city jobs. But they've returned to their roots with a retail brand that is scoring big with consumers. Yahoo Finance's Stephanie Sy and Dion Rabouin talk to the founders.
As we discussed in the previous part of this series, Rite Aid’s (RAD) top line has contracted over the last five quarters. Total revenue declined in every quarter of fiscal 2018 and shrunk 0.9% year-over-year or YoY during the first quarter of 2019. In comparison, CVS Health’s (CVS) top line has grown over the past 21 straight quarters while Walgreens Boots Alliance (WBA) has seen positive sales growth over the past five quarters. What’s behind Rite Aid’s deteriorating growth numbers?
Rite Aid (RAD) is slated to report its 2019 second-quarter results on Thursday, September 27. The company is once again expected to report a net loss this quarter.
As wages grow and inflation remains tame, this could give the retail sector the boost investors have been waiting for. Names like Target (NYSE:TGT), TJX Companies (NYSE:TJX), Home Depot (NYSE:HD) and others have helped to push the SPDR Retail ETF (NYSEARCA:XRT) higher. As for the ETF, it’s move above $51 resistance was important, as this level has become a key level of support going into the all-important second half.
As we noted in US Businesses Push Back against Trump’s Tariffs and How the Next Round of Tariffs Could Affect the US Holiday Season, both US (SPY) (IVV) businesses and consumers are expected to be negatively affected by the most recent round of trade tariffs.
Which Sectors Are Worried about Rising US–China Trade Tensions? Most of the $200.0 billion in Chinese imports targeted by the next round of tariffs are expected to include consumer products. With the additional $267.0 billion in product tariffs proposed by President Trump, these tariffs could eventually cover almost all imports from China.
TJX Companies announced Monday a 2-for-1 split of its common stock, to be effected in the form a stock dividend. The discount retailer's stock was down 0.7% in afternoon trade. If approved at the shareholders meeting scheduled for Oct. 22, the stock dividend will be distributed on Nov. 6 to shareholders of record on Oct. 30. Separately, the company declared a regular quarterly dividend of 39 cents a share, on a pre-split basis, to be payable Dec. 6 to shareholders of record on Nov. 15. "TJX has a long and successful track record, and this stock split underscores our great confidence in the continued success of our company," said Chief Executive Ernie Herrman. Earlier, shoe retailer Steve Madden Ltd. had announced a 3-for-2 stock split. The stock has soared 46.5% over the past months, closing at a record $111.44 on Sept. 4. In comparison, the SPDR S&P Retail ETF has rallied 24.8% and the S&P 500 has climbed 15.8%.
Shares of Bed Bath and Beyond Inc. rallied 1.7% in premarket trade Monday, after the home furnishings retailer was upgraded at Raymond James ahead of fiscal second-quarter results, citing expectations of better-than-expected same-store sales results. Analyst Budd Bugatch raised his rating to market perform, after being at underperform for the the past five months. The company is scheduled to report earnings on Sept. 26. Bugatch said while the company continues to face compressing margins, his upgrade "simply underscores our view that sales results for F2Q18 now seem more likely to reflect a better consumer sales environment than previously expected, thereby mirroring the results for overall retail and other retailers have posted during late spring and summer." With the stock underperforming the retail sector this year, Bugatch believes upbeat results will provided a "trading opportunity," leaving a bearish rating now "too harsh." The stock had tumbled 10.5% over the past three months, while the SPDR S&P Retail ETF has gained 4.9% and the S&P 500 has tacked on 4.5%.
this year, brick and mortar retail has made a comeback, and it's why SPDR S&P Retail is now on IBD's ETF Leaders screen
It’s still too early to tell what Hurricane Florence’s total impact on retail will be, but home-improvement stocks are already getting a lift. Where we were: Last year’s powerful storm season is still fresh in many minds as we brace for Florence. Where we’re headed: We’ll know more once Florence makes landfall, but for now there’s some preliminary estimates about which retailers will see benefits or pain from the storm.
Shares of Kroger Co. dropped 5.5% in premarket trade Thursday, after the supermarket chain reported fiscal second-quarter earnings that beat expectations, but sales that came up short. Net income rose to $508 million, or 62 cents a share, from $353 million, or 39 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came in at 41 cents, above the FactSet consensus of 38 cents. Sales increased to $27.87 billion from $27.60 billion, just missing the FactSet consensus of $27.93 billion, as identical-store sales growth of 1.6% was below expectations of a 1.8% rise. Looking ahead, the company raised its net EPS guidance range to $3.88 to $4.03 from $3.64 to $3.79, but affirmed its adjusted EPS outlook of $2.00 to $2.15. Kroger expects full-year identical sales growth of 2.0% to 2.5%, compared with the FactSet consensus of 2.0%. The stock had run up 22% over the past three months through Wednesday, while the SPDR S&P Retail ETF had gained 4.8% and the S&P 500 had tacked on 4.1%.
Macy's Inc. said Wednesday it plans to hire about 80,000 seasonal workers for the holiday season, matching the overall hiring plans announced last year. The department store chain said its hiring event for the year will be on Oct. 18. The company said about 23,500 seasonal hires will be in direct-to-consumer fulfillment facilities, compared with 18,000 hires in the segment last year. Separately, 1,500 seasonal hires will be in customer service centers in Ohio, Florida and Arizona, and 1,000 of the hires will be to support the 92nd annual Macy's Thanksgiving Day Parade, Santalands and other holiday events. The stock was indicated up about 1% in premarket trade. It has slumped 9.0% over the past three months, while the SPDR S&P Retail ETF has gained 3.9% and the S&P 500 has tacked on 3.6%.
Francesca's Holdings Corp. shares plummeted 32% in Tuesday trading after the specialty retailer reported an earnings miss and lowered its sales guidance for the second half of the year. The stock drop puts the company on a path to the biggest percentage decline ever. Chief Executive Steven Paul Lawrence attributed the disappointing second-quarter results to weak brick-and-mortar traffic and a 13% same-store sales decrease. "What is clear from the second-quarter results is that it is taking us longer than anticipated to turn the corner and to get our core guest to reengage and shop with us with the same frequency that she has in the past," Lawrence said on the earnings call, according to a FactSet transcript. "While we are seeing improvement in many of our key metrics, our slowdown in traffic is indicating to us that it'll take time to regain her trust and win her back." One strategy for growth will focus on e-commerce, which has grown double digits, Lawrence said. Francesca's has brought on a consultancy to help with its plans. However, even with a plan in place, it's hard to get a shopper to return once they've walked away, Christina Boni, vice president at Moody's, told MarketWatch for this story about J.C. Penney Co. Inc. . Francesca's shares are down more than 45% for the year so far, while the S&P 500 index has gained 8.1%, and the SPDR S&P Retail ETF has gained 15.5% for the period.
Shares of Francesca's Holdings Corp. plummeted 24% toward a record low in premarket trade Tuesday, after the specialty retailer of apparel, jewelry and accessories reported fiscal second-quarter earnings and sales that missed expectations, and provided a downbeat outlook, citing "weak traffic trends." Net income for the quarter to Aug. 4 fell to $454,000, or 1 cent a share, from $7.3 million, or 20 cents a share, in the same period a year ago. The FactSet consensus for earnings per share was 5 cents. Sales declined 6% to $113.0 million, missing the FactSet consensus of $120.8 million, as the same-store sales drop of 13% compared with expectations of a 6.8% decline. For the current third quarter, the company expects net sales of $105 million to $110 million, below the FactSet consensus of $116.5 million, and same-store sales to decline 3% to 8%, compared with expectations of a 4.3% rise. The stock has shed 19.4% year to date through Monday, while the SPDR S&P Retail ETF has rallied 14.8% and the S&P 500 has gained 7.6%.
Radial, a multi-platform commerce tech and operations company, said Monday that it will add 20,000 seasonal workers for the holiday season, equal to the amount it added in 2017. Radial has 23 fulfillment centers and eight customer service centers in North America, and regularly employs 3,000 full-time workers. Last week, Michaels Cos. Inc. announced it will hire 15,000 seasonal workers, and 1-800-Flowers.com Inc. said it would add 8,000 workers for the holidays. The SPDR S&P Retail ETF is up 14.6% for the year so far, outpacing the S&P 500 index , which is up 7.7% for the period.
Amazon.com Inc.'s price target is now $2,300 at Wells Fargo, up from $2,110, with analysts forecasting that the e-commerce giant will become the top U.S. apparel seller in 2018. Citing Euromonitor data, Wells Fargo notes that Amazon was the second largest apparel seller in 2017, following Walmart Inc. . But Amazon accounted for one-third of the retail growth in the second quarter, with e-commerce penetration gaining. Amazon is snapping up web-browsing time and new customers with nearly $25 billion in merchandise was sold on Amazon platforms last year, according to Wells Fargo. "[W]hereas only 1.4% of apparel and footwear sales were done on Amazon's platforms in 2012, this figure grew to 7.2% last year and will likely be in the 8.5%-9.0% range in 2018 (by our estimation)," analysts led by Ike Boruchow wrote. Amazon shares have climbed more than 101% over the past year, outpacing the SPDR S&P Retail ETF , which is up 29% for the period, and the S&P 500 index , which is up 17% for the last 12 months.
Shares of Fred's Inc. rocketed 32% to pace all premarket gainers, after Walgreens Boots Alliance Inc. said it will pay $165 millio to buy pharmacy patient prescription files and related inventory from 185 Fred's pharmacies in 10 Southeastern states. Under terms of the deal, the Walgreens will also pay Fred's an amount equal to the value of related pharmacy inventory. The deal is part of Fred's previously announced plan to monetize non-core assets. Fred's said it will continue to operate the retail stores at most of the locations after the pharmacies close. Once the deal closes, Fred's will operate 162 pharmacies across nearly 600 stores. "With this agreement, we have taken a major step towards achieving one of our main goals of eliminating our debt balance," said Fred's Interim Chief Executive Joe Anto. Fred's stock has plunged 60% year to date through Friday, while Walgreens shares have slipped 6.1%, the SPDR S&P Retail ETF has rallied 14% and the S&P 500 has gained 7.4%.
MARKET PULSE Shares of Lands' End Inc. (le) plunged 16% toward a three-month low in premarket trade Thursday, after the clothing, accessories and home products retailer reported a wider second-quarter loss and declines in same-store sales.
What Does the Market Expect from the August Jobs Report? The miss in the July numbers was partially compensated by upward revisions in job gains for May and June from 244,000 and 213,000 to 268,000 and 248,000, respectively. Overall, the retail sector (XRT) added 7,000 net jobs in the month.
Michaels Companies Inc. (mik) said Wednesday it plans to hire more than 15,000 seasonal workers for the holidays, in its U.S. and Canada stores and distribution centers. The company said seasonal workers will have competitive wages and a 30% discount at Michaels stores.
The SPDR S&P Retail ETF (XRT) , the largest retail-related exchange traded fund, jumped nearly 4.8% in August, extending its third-quarter gain to over 10%. The strength in the retail sector this year is a stark contrast in previous years when investors grew concerned over the future outlook of traditional brick-and-mortar stores in face of a rising competition from e-commerce or internet retailers. “Specifically, retail has been one of the best sectors to own in September, according to data from Schaeffer's Senior Quantitative Analyst Rocky White.
MARKET PULSE Shares of Conn's Inc. (conn) surged 7.3% in premarket trade Tuesday, after the furniture and mattress retailer reported fiscal second-quarter earnings and revenue that beat expectations, although same-store sales missed.