We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Retail Stocks Gain on Better-Than-Expected Earnings From Abercrombie, Sears
Read MoreHide Full Article
The struggling retail industry received a nice lift on Thursday morning following the release of several better-than-expected earnings reports, including those of iconic names like Abercrombie & Fitch (ANF - Free Report) , Sears (SHLD - Free Report) , and Tiffany’s .
Latest Results
Shares of apparel retailer Abercrombie & Fitch—a popular mall-based brand geared towards tweens, teens, and young adults—soared more than 15% in morning trading after the company reported narrower-than-expected losses.
Abercrombie posted a loss of 23 cents per share, which was well ahead of the Zacks Consensus Estimate calling for a 34 cent loss. This marked the first quarter in the last five in which Abercrombie surpassed estimates. Quarterly revenues of $779.3 million were also ahead of our $761.6 million consensus estimate, and the company cited strong sales from its Hollister brand as the reason for its improvement.
Jewelry retailer Tiffany & Co. opened more than 2.5% higher after the company also posted improved earnings. Tiffany reported earnings of 92 cents per share, beating the Zacks Consensus Estimate of 88 cents and growing 9.5% year-over-year. Total revenues gained 3% to $960 million, which beat our consensus estimate of $933 million, and the company noted that strength in the Asia-Pacific region and moving more wholesale diamonds helped these results.
Shares of Dollar Tree (DLTR - Free Report) were also moving higher on Thursday morning. The bargain retailer gained more than 8.2% in early trading hours thanks to its strong earnings growth figures. Dollar Tree posted profits of 99 cents per share, beating the Zacks Consensus Estimate of 87 cents and soaring 37.5% year-over-year.
Guess? Inc. (GES - Free Report) , a clothing and accessories retailer, also soared after better-than-expected results. The stock gained nearly 17% in Thursday morning trading after the company notched earnings of 19 cents per share, crushing the Zacks Consensus Estimate of 10 cents and gaining 26.7% from the year-ago quarter. For fiscal 2018, management now expects net revenues to rise between 6% and 7.5%, up from the previously-announced range of 3.5% to 5%.
Specialty home goods retailer Williams-Sonoma (WSM - Free Report) reported its latest results last night. The stock is currently up more than 4% after posting positive comps and better-than-expected earnings of 61 cents per share. The company notched comps of 10.1% in its West Elm furniture stores.
Finally, the once-dominant Sears, which has been hanging on for dear life over the past several years, moved more than 7.3% higher in early morning hours after posting narrower-than-expected losses. Sears reported a $2.34 per share loss, which topped the $2.48 share loss that analysts expected. Revenues of $4.37 billion also beat estimates of $4.21 billion, and Sears announced it would close a further 28 Kmart stores.
The recent struggles of Sears have been well-documented, but if you want a better look at the rise-and-fall of one of America’s most iconic retail brands, check out this recent episode of the Shopping For Stocks podcast:
Industry Reaction
Today’s solid results gave the retail industry a much-needed boost. The SPDR S&P Retail ETF (XRT) gained more than 2% in morning trading, while the VanEck Vectors Retail ETF (RTH) was up about 0.35%. Overall, about 65% of the companies in our “Retail and Wholesale” sector were able to meet or surpass earnings estimates this quarter.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today. Learn more >>
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Retail Stocks Gain on Better-Than-Expected Earnings From Abercrombie, Sears
The struggling retail industry received a nice lift on Thursday morning following the release of several better-than-expected earnings reports, including those of iconic names like Abercrombie & Fitch (ANF - Free Report) , Sears (SHLD - Free Report) , and Tiffany’s .
Latest Results
Shares of apparel retailer Abercrombie & Fitch—a popular mall-based brand geared towards tweens, teens, and young adults—soared more than 15% in morning trading after the company reported narrower-than-expected losses.
Abercrombie posted a loss of 23 cents per share, which was well ahead of the Zacks Consensus Estimate calling for a 34 cent loss. This marked the first quarter in the last five in which Abercrombie surpassed estimates. Quarterly revenues of $779.3 million were also ahead of our $761.6 million consensus estimate, and the company cited strong sales from its Hollister brand as the reason for its improvement.
Jewelry retailer Tiffany & Co. opened more than 2.5% higher after the company also posted improved earnings. Tiffany reported earnings of 92 cents per share, beating the Zacks Consensus Estimate of 88 cents and growing 9.5% year-over-year. Total revenues gained 3% to $960 million, which beat our consensus estimate of $933 million, and the company noted that strength in the Asia-Pacific region and moving more wholesale diamonds helped these results.
Shares of Dollar Tree (DLTR - Free Report) were also moving higher on Thursday morning. The bargain retailer gained more than 8.2% in early trading hours thanks to its strong earnings growth figures. Dollar Tree posted profits of 99 cents per share, beating the Zacks Consensus Estimate of 87 cents and soaring 37.5% year-over-year.
Guess? Inc. (GES - Free Report) , a clothing and accessories retailer, also soared after better-than-expected results. The stock gained nearly 17% in Thursday morning trading after the company notched earnings of 19 cents per share, crushing the Zacks Consensus Estimate of 10 cents and gaining 26.7% from the year-ago quarter. For fiscal 2018, management now expects net revenues to rise between 6% and 7.5%, up from the previously-announced range of 3.5% to 5%.
Specialty home goods retailer Williams-Sonoma (WSM - Free Report) reported its latest results last night. The stock is currently up more than 4% after posting positive comps and better-than-expected earnings of 61 cents per share. The company notched comps of 10.1% in its West Elm furniture stores.
Finally, the once-dominant Sears, which has been hanging on for dear life over the past several years, moved more than 7.3% higher in early morning hours after posting narrower-than-expected losses. Sears reported a $2.34 per share loss, which topped the $2.48 share loss that analysts expected. Revenues of $4.37 billion also beat estimates of $4.21 billion, and Sears announced it would close a further 28 Kmart stores.
The recent struggles of Sears have been well-documented, but if you want a better look at the rise-and-fall of one of America’s most iconic retail brands, check out this recent episode of the Shopping For Stocks podcast:
Industry Reaction
Today’s solid results gave the retail industry a much-needed boost. The SPDR S&P Retail ETF (XRT) gained more than 2% in morning trading, while the VanEck Vectors Retail ETF (RTH) was up about 0.35%. Overall, about 65% of the companies in our “Retail and Wholesale” sector were able to meet or surpass earnings estimates this quarter.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today. Learn more >>