It was another mixed earnings day, so let’s recap some of the biggest movers. đ
First, let’s start with electronics retailer Best Buy, which beat earnings and revenue expectations by $0.16 and $0.08 billion, respectively. CEO Corie Barry reiterated her belief that this year will be “the low point in tech demand,” with the consumer electronics industry seeing stabilization next year via the natural upgrade and replacement cycles. With that said, Best Buy continues to see consumers revert to “pre-pandemic behavior.” They’re looking for great deals and convenience, so promotions will be key to spurring demand. đŦ
Overall, the company continues to cut costs and diversify through higher-margin initiatives like its “My Best Buy” subscription program. As a result, it was able to raise its full-year earnings per share outlook and improve its comparable sales guidance while narrowing the top end of its revenue guidance. $BBY shares jumped 4% today but remain in a 15-month sideways trend. đē
Furniture retailer Big Lots had itself a big day after its adjusted loss per share of $3.24 on revenues of $1.14 topped the $4.11 and $1.10 billion consensus view. The company says its core lower-income customers remain under significant pressure and have limited capacity for higher-ticket discretionary purchases. However, many of the company’s key metrics improved more than anticipated during the quarter, which was a positive enough sign for investors. $BIG rose 27%. đī¸
Looking overseas, e-commerce site Temu’s owner PDD Holdings soared after reporting strong sales. Revenue rose 66% YoY to $7.2 billion, driven by strong marketing spend in China and its international expansion. The company’s promotions and bets on lower-tier cities have allowed it to capture market share from larger competitors, Alibaba and JD.com.
Despite property market stress and weaker-than-expected economic growth this year, CEO Zhao Jiazhen says the company is seeing a continued improvement in the macro trends and consumers’ willingness to shop. For now, investors are focused on its strong revenue growth and not its narrowing margins. $PDD shares 15% today to about six-month highs. đ
Staying in China, shares of electric vehicle maker Nio plunged before recovering sharply along with the market. The company missed on both the top and bottom line, with its loss per share doubling YoY as deliveries slipped amid a transition to its updated vehicle platform. The Chinese EV market remains extremely competitive, but executives anticipate solid growth in vehicle deliveries in the years’ second half. $NIO shares closed down 1% on the day. âĄ
And to wrap up, Calvin Klein and Tommy Hilfiger parent PVH flagged solid revenue growth in Asia during its second-quarter results. The company’s adjusted earnings per share of $1.98 on revenues of $2.21 billion topped the $1.76 and $2.19 billion expected by analysts. Despite the solid performance in Asia, executives reaffirmed previous full-year guidance of 3% to 4% revenue growth and non-GAAP earnings per share of $10.35. $PVH shares were up 3% intraday and another 3% after hours. đī¸