Cold Environment, Hot Results

Clothing retailers continue to surprise to the upside this quarter. Let’s take a look at today’s winners.

First is the off-price retailer Burlington Stores, which experienced a weak quarter but offered investors an upbeat 2023 outlook. ๐Ÿ“†

The company said a challenging macroeconomic environment is a factor, noting its higher exposure to low-income consumers who are affected most by inflation. With that said, it also acknowledged some of its own missteps. CEO Michael O’Sullivan said it’s taking steps to improve its product mix and provide it an opportunity to raise prices and boost margins shortly.ย 

Unlike its rivals, the company saw an uptick in sales in October and into November, allowing it to reaffirm its Q4 guidance. However, for next year it expects the improvements it’s making to result in stronger-than-previously-forecasted revenue and earnings.

Investors appear to be looking ahead, with $BURL shares rising over 20% today. ๐Ÿ”บ

Meanwhile, mall retailer Abercombie & Fitch reported better-than-expected earnings and revenue.

The company’s $880.1 million beat expectations of $831.1 million, while a $0.01 in earnings beat the $0.14 loss expected.

Like other retailers, the company is cautiously optimistic about the holiday shopping season and says its inventory position is much better than last year’s. As a result of the improvements, it raised its full-year outlook to net sales of -2% to -3% vs. the mid-single-digit drop forecasted.ย  ๐Ÿ‘

Lastly, the company announced that Terry Burman is stepping down as Chairperson of the Board in January. The current director and chair of the Nominating and Board Governance Committee, Nigel Travis, will replace him.

Overall, the subtle improvements boosted $ANF shares by 22% today. ๐Ÿ“ˆ

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Chinese e-commerce giant posted better-than-expected fourth-quarter earnings and revenue. However, its weak outlook left investors hoping for more. ๐Ÿ™

The company’s adjusted earnings per share of $0.70 and revenues of $42.80 billion topped the expected $0.51 and $42.53 billion.

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Retailers Mixed In Hitting Their Target

After weak results and forecasts from Walmart and Home Depot last week, Target added to the market’s concern about consumers. โš ๏ธ

The retailer reported holiday-quarter earnings and revenue that topped expectations. Adjusted earnings per share of $1.89 and revenue of $31.4 billion beat the $1.40 and $30.72 billion Wall Street consensus. It’s important to note that those expectations had been ratcheted down over the last year as the company adjusted to the changing environment. โ†˜๏ธ

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Early Morning Risers

It was a rough day in the markets, but several stocks started the morning off strong and remained so throughout the day.

The first was Sea Ltd., which operates one of Southeast Asia’s largest e-commerce and digital entertainment platforms. ๐Ÿ›’

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What The Funko Just Happened?

The American manufacturer of licensed and limited pop culture collectibles is best known for its “Funko Pop” bobbleheads.

But unfortunately for investors, the only thing popping was its share price (and not in a good way). ๐Ÿซง

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