Retail Earnings Roundup

There were many retailer earnings today, so let’s recap each with one or two lines. 👇

Off-price retailer Burlington Stores saw third-quarter earnings, revenue, and margins top expectations as consumers traded down to cheaper brands. Its guidance was also strong, with executives citing strong “back to school” shopping and a great start to the holiday shopping season this November. $BURL +21%.

Executives of athletic goods retailer Dick’s Sporting Goods said they’re “excited” for the holiday shopping season. A strong “back to school” shopping season drove a third-quarter earnings and revenue beat. It remains cautious of consumer trends but provided an upbeat outlook and guidance for the holiday quarter. $DKS +2.17%. 

Home improvement retailer Lowe’s saw weaker-than-expected spending from its do-it-yourself customers drive a third-quarter earnings and revenue miss. The company also reduced its full-year guidance, remaining cautious on consumer spending and the housing market. $LOW -3.12%.

Mall retailer Abercrombie & Fitch posted a 20% jump in sales thanks to a strong “back to school” shopping season and growth at its namesake and Hollister brands. Revenue and earnings both topped expectations, with margins also improving significantly. Executives said they have seen an “encouraging” start to the holiday shopping season. $ANF +2.41%.

American Eagle Outfitters earnings and revenue beat expectations slightly, as did its full-year guidance update. However, its holiday forecast failed to impress investors as the company remains cautious about consumer trends. $AEO -15.80%.

Department store Kohl’s cost-cutting efforts allowed it to beat earnings expectations, but its sales fell short of analyst estimates. It’s struggling to drive any semblance of sales growth and has lowered its 2023 revenue forecast, expecting sales to fall 2.8% to 4% YoY. $KSS -8.57%. 

Consumer electronics retailer Best Buy beat earnings expectations but missed on revenues. Like home improvement retailers, the company is seeing demand moderate as consumers continue to focus discretionary spending on experiences rather than goods. Executives cut their full-year sales guidance, saying they expect shoppers to primarily be driven by holiday promos. $BBY -0.72%.

Mall retailer Guess also failed to impress Wall Street, cutting its revenue and profit outlook amid weaker-than-expected demand. CEO Carlos Alberini said, “We are navigating through an uncertain shopping environment in many parts of the world impacted by geopolitical issues and lower consumer confidence.” $GES -16.00%.

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