Sellers Hooked This Retailer Again

Home furnishing retailers across the spectrum have struggled in the current environment. We’ve heard from Big Lots at the low end and RH at the high end, both experiencing weakness due to inflation and housing market activity grinding to a halt. ๐ŸŒ

Today sellers got their hooks into another retailer, Hooker Furnishings Corp., which reported weak second-quarter results.ย 

The company’s adjusted earnings per share of $0.07 on revenues of $97.8 million fell short of the $0.18 and $127.2 million expected by analysts. That represents a 36% Yoy revenue decline, which executives don’t see improving much. โš ๏ธ

CEO Jeremy Hoff said, “We believe the softer demand seen currently industry-wide is driven by retailers continuing to sell through over-inventoried positions and a short-term glut of heavily discounted home furnishings in the market…”

An inventory glut and weak demand mean a lot of discounting to attract customers, weighing on revenues and margins. Even if the industry clears its excess inventory, demand is expected to remain tepid due to inflation-strapped consumers cutting spending and stagnant housing activity.ย 

$HOFT shares fell 17%, marking their worst one-day decline since June 2019. ๐Ÿ“‰

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Walmart Rolls Back Its Share Price

Yesterday, we heard from Target, which soared after getting its earnings back on track despite declining sales. Today, we heard from Walmart, which plunged after growing sales and beating on earnings. Let’s talk about why that happened. ๐Ÿ‘‡

Today’s earnings in Walmart contrasted Target’s, but the underlying cautious tone about the U.S. consumer remained. The big-box retailer reported adjusted earnings per share of $1.53 on $168.80 in revenues, topping the $1.52 and $159.72 billion expected by analysts.ย 

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A Season Of Sales Slumps

We’ve heard from many retailers this week, but BJ’s Wholesale topped things off before the bell. ๐Ÿ””

The membership-based warehouse retailer’s third-quarter same-store sales came in lighter than expected. Excluding gasoline, comparable sales fell 0.1% YoY, with Wall Street looking for a 1% miss. It marks the company’s third straight quarter missing on this metric, with the company saying it’s seeing “shifts in consumer behavior” driven by the macroeconomic environment. ๐Ÿ›’

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Bulls Scaling Back In Zscaler

Cybersecurity software stock Zscaler is falling despite its first-quarter results and full-year guidance beating expectations. ๐Ÿค”

The company’s adjusted earnings per share of $0.67 topped the expected $0.49. Revenues of $496.7 million and billings of $456.6 million also beat the $473 million and $441 million anticipated.ย 

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Popular Energy Stocks Lose Power

It’s Friday, and we’re all running on empty, but we wanted to highlight three power stocks that took a beating today. ๐Ÿ˜ฑ

First up is Plug Power, which had its worst day over nine years. The hydrogen technology company issued a warning about its financial position during its third-quarter earnings release. Although its current revenues and fourth-quarter forecast aligned with expectations, it said it was hit by “unprecedented supply challenges.”

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