3 Retail Stocks Lighting Up Trading Screens After Earnings

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Wal-Mart Stores, Inc. (NYSE:WMT) reported its results for the second quarter. Net income for Wal-Mart Stores, Inc. rose to $3.8 billion ($1.09 per share) vs. $3.6 billion (97 cents per share) in the same quarter a year earlier. This marks a rise of 5.7% from the year earlier quarter. Rose 5.4% to $109.37 billion from the year earlier quarter. WMT was about in line with expectations as the mean analyst estimate of $1.08 per share. Analysts were expecting revenue of $108.26 billion.

“We are reporting today $1.09 in earnings per share from continuing operations, a 12.4 percent increase over last year’s second quarter,” said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. “Our EPS is near the top of our guidance. “I’m encouraged by the sales improvement in our Walmart U.S. stores. Comp sales have increased sequentially month to month within the quarter. In fact, this was the best quarterly performance since the third quarter of fiscal 2010,” Duke continued. “We’re committed to deliver positive comp sales by widening the gap on price, and we have a specific plan to deliver EDLP to every customer.”

Competitors to Watch: Target Corporation (NYSE:TGT), Costco Wholesale Corp. (NASDAQ:COST), Best Buy (NYSE:BBY), Dollar General Corp. (NYSE:DG), eBay (NASDAQ:EBAY), Sears Holdings (NASDAQ:SHLD), BJ’s Wholesale Club, Inc. (NYSE:BJ), Family Dollar Stores, Inc. (NYSE:FDO), Gordmans Stores, Inc. (NASDAQ:GMAN), Dollar Tree, Inc. (NASDAQ:DLTR), Amazon.com, Inc. (NASDAQ:AMZN), and Fred’s, Inc. (NASDAQ:FRED).

Home Depot, Inc. (NYSE:HD) reported net income above Wall Street’s expectations for the second quarter.Net income for the home improvement store rose to $1.36 billion (87 cents per share) vs. $1.19 billion (72 cents per share) in the same quarter a year earlier. This marks a rise of 14.3% from the year earlier quarter. Rose 4.2% to $20.23 billion from the year earlier quarter. HD beat the mean analyst estimate of 82 cents per share. Analysts were expecting revenue of $19.96 billion.

“Our second-quarter results were driven by a rebound in our seasonal business, storm-related repairs and strength in our core categories,” said Frank Blake, chairman & CEO. “We continue to deliver a strong operating performance while also investing in customer service and our merchandising initiatives. I would like to thank our associates for their hard work and dedication. It is their efforts that enabled us to deliver these results.”

Competitors to Watch: Lowe’s Companies, Inc. (NYSE:LOW), Builders FirstSource, Inc. (NASDAQ:BLDR), Lumber Liquidators Hldgs., Inc. (NYSE:LL), Sherwin-Williams (NYSE:SHW), Sears Holdings (NASDAQ:SHLD), Target (NYSE:TGT) and Wal-Mart (NYSE:WMT).

TJX Companies Inc. (NYSE:TJX) reported its results for the second quarter. Net income for TJX Companies Inc. rose to $348.3 million (90 cents per share) vs. $305 million (74 cents per share) in the same quarter a year earlier. This marks a rise of 14.2% from the year earlier quarter. Rose 7.9% to $5.47 billion from the year earlier quarter. TJX beat the mean analyst estimate of 89 cents per share. Analysts were expecting revenue of $5.43 billion.

Carol Meyrowitz, Chief Executive Officer of The TJX Companies, Inc., stated, “These results mark the sixth consecutive year of very strong second quarter operating performance. We believe that this speaks to the consistency of TJX and the great flexibility of our business model, which has enabled us to succeed year after year, through both strong and weak economic environments. Customer traffic continues to be up over large increases in the last two years, as our tremendous values attract new and loyal customers. As we enter the third quarter, we see a marketplace full of fabulous brands and fashions and we will be utilizing the flexibility in our inventory position to take advantage of these opportunities. In addition, we will be significantly increasing our marketing penetration in the second half of the year, leveraging our marketing spend, which we believe will also draw consumers to our stores.”

Competitors to Watch: Stein Mart, Inc. (NASDAQ:SMRT), Wal-Mart Stores, Inc. (NYSE:WMT), Ross Stores, Inc. (NASDAQ:ROST), Fred’s, Inc. (NASDAQ:FRED), J.C. Penney (NYSE:JCP), Target Corporation (NYSE:TGT), Macy’s, Inc. (NYSE:M), and Dillard’s, Inc. (NYSE:DDS).

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