Dollar Tree, Salesforce, Foot Locker: Earnings winners, losers

A number of companies across the retail and tech landscape reported quarterly earnings this week. Yahoo Finance spoke to experts across the industry to discuss Dollar Tree (DLTR), Foot Locker (FL), Salesforce (CRM), Snowflake (SNOW), and Workday (WDAY). Here is everything investors need to know, including the winners and losers from this week's results.

Dollar Tree (00:00:03)

Brad Thomas, KeyBanc Capital Markets Managing Director, remains positive on Dollar Tree's outlook after the company's quarterly results. Thomas said, "That fourth quarter guidance from an earnings standpoint was certainly encouraging, driven primarily by ongoing strength that the Dollar Tree banner continues to show some nice share gains."

Foot Locker (00:00:35)

Janine Stichter, BTIG Consumer Retail and Lifestyle Brands Analyst and Managing Director, discussed the possible growth opportunities for Foot Locker, despite concerns over consumer spending and inventory levels. Stichter explained, "Whereas for most companies who've reported through the Q3 reporting cycle saw a deceleration from August into September into October, Foot Locker saw the opposite."

Salesforce (00:01:09)

Essex Investment Management Co-CEO Nancy Prial thinks that Salesforce is showing progress, backed by its development of AI technology. Prial said, "We've got the very beginnings of their entry into really using AI technology and using generative AI to allow their customers to really monetize and get a lot more value out of all of the data that's embedded in their CRM systems."

Snowflake (00:01:36)

Yahoo Finance's Julie Hyman broke down Snowflake's quarterly earnings, highlighted by product revenue growing 34 percent year-over-year. Hyman said, "We're still seeing from these big companies, pretty impressive growth."

Workday (00:01:54)

Mizuho Managing Director Siti Panigrahi had a positive outlook after Workday's Q3 earnings. Panigrahi said, "They're exhibiting well with new management, new CEO, new CFO. I think the company is executing really well."

Video highlights:

00:00:03 - Brad Thomas, KeyBanc Capital Markets Managing Director

00:00:35 - Janine Stichter, BTIG Consumer Retail and Lifestyle Brands Analyst and Managing Director

00:01:09 - Essex Investment Management Co-CEO Nancy Prial

00:01:36 - Yahoo Finance's Julie Hyman

00:01:54 - Mizuho Managing Director Siti Panigrah

Video Transcript

[MUSIC PLAYING]

BRAD THOMAS: I think what's carrying the day here is number one, low expectations for all retailers going into this earnings season. We've been warning going back to June that this could be a soft holiday season, particularly as student loans kicked in, as inflation continues to weigh on ability to spend.

But that fourth quarter guidance from an earnings standpoint was certainly encouraging, primarily being driven by ongoing strength at the Dollar Tree banner that continues to show some nice share gains as a result of them having broken the buck and rolling out more multi price items.

JANINE STICHTER: These results are still very challenged, and their comps are down 8% in the quarter. But up against a backdrop where I think a lot of analysts and investors were expecting them to have to lower their annual guidance, this is a relatively better result. And I think the important thing to call out here is, whereas for most companies who have reported through the Q3 reporting cycle saw a deceleration from August, into September, into October, Foot Locker actually saw the opposite.

Where their trends were relatively consistent in August and September, down high single digits, but they actually saw an improvement in October down mid-single digits and it sounds like Black Friday was off to a good start for the holidays for them.

NANCY PRIAL: We think it's a combination of on the top line continued progress with expanding their suite of customer relationship management products, and then we've got the very beginnings of their entry into really using AI technology and using generative AI to allow their customers to really monetize and get a lot more value out of all of the data that's embedded in their CRM systems.

JULIE HYMAN: When it comes to Snowflake, the company talking about product revenue growing 34% year over year. That's one of the things that they were highlighting here. Overall revenue for the quarter was up by 32%. So still seeing from these big companies pretty impressive growth.

SITI PANIGRAHI: Workday, they're the leader in Cloud Human Capital Management Application, and they have extended their success in HCM to financial and other applications. So they're executing well with new management, new CEO, new CFO. I think the company executing really well.