Third quarter earnings season is winding down, but this week there are still over 250 companies expected to report earnings, with many of them being the big retailers.
The retail sector has been one of the gloomiest groups on Wall Street. Many investors believe that they will ALL be Amazoned. But the department stores have already reported and it wasn’t too bad. Will the others follow suit?
Tracey looked through the retail earnings charts to find those with the best track records this week. Some of these are trading near new highs, but some are not.
Keep an eye on comparable store sales guidance as well as the earnings miss or beat. It’s just as important as beating the Zacks Consensus Estimate.
All 5 of these companies have had great comparable store sales results in the last few quarters. Can they do it again in a challenging retail environment?
5 Top Retail Earnings Charts
1. Home Depot (HD – Free Report) is a beast. Not only has it beat every quarter for 5 years it is also crushing the comparables. In the second quarter, it did a 6.3% sales comp. Almost no one in the industry is doing it as well as Home Depot.
2. TJX Companies (TJX – Free Report) is cashing in on the popular Home Goods chain, which did a 7% sales comparable last quarter. Consumers are willing to spend on their homes. But TJ Maxx’s shares have been a bit weak. Will another good quarter boost the stock out of its narrow trading range?
3. Children’s Place (PLCE – Free Report) is a mall-based retailer who hasn’t missed in 5 years. This type of specialty retailer was supposed to be Amazoned, and its competitor, Gymboree, was, as it declared bankruptcy and closed 330 stores. But this gave a boost to Children’s Place. It had a 3.1% comparable last quarter.
4. L Brands (LB – Free Report) used to be the darling of the Street with its popular Pink brand but Pink isn’t as popular as it once was and it has also exited swimwear. It pre-announced sales comps of 2% and shares are off the lows.
5. Best Buy (BBY – Free Report) was supposed to be Amazoned years ago but instead of caving in to the competition, it upped its game and came roaring back. Its last earnings miss was nearly 5 years ago and it did a 5.4% comp last quarter, among the best in the industry. Can it keep the momentum heading into the holiday season?
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