2 Retail Stocks Drumming Up Trading Chatter After Earnings Releases

Walgreens (NYSE:WAG) reported its results for the first quarter. Net income for the drug store fell to $554 million (63 cents per share) vs. $580 million (62 cents per share) a year earlier. This is a decline of 4.5% from the year earlier quarter. Revenue rose 4.7% to $18.16 billion from the year earlier quarter. WAG fell short of the mean analyst estimate of 67 cents per share. Analysts were expecting revenue of $18.21 billion.

Walgreens President and CEO Greg Wasson said, “The first quarter was expected to be a very challenging one for gross profit dollar growth as we faced comparisons with strong gross profit performances in the first quarter of the two previous years. Despite that, we’re pleased with important aspects of our business including our record sales of $18.2 billion, the first-quarter record number of prescriptions filled, the continued profitable growth of our front-end business and delivering on our commitment to return cash to our shareholders.”

Competitors to Watch: drugstore.com, inc. (NASDAQ:DSCM), Graymark Healthcare Inc (NASDAQ:GRMH), CVS Caremark Corporation (NYSE:CVS), Rite Aid Corporation (NYSE:RAD), PetMed Express, Inc. (NASDAQ:PETS), China Nepstar Chain Drugstore Ltd. (NYSE:NPD), GNC Acquisition Hldgs. Inc (NYSE:GNC), PharMerica Corporation (NYSE:PMC), BioScrip Inc. (NASDAQ:BIOS), and Medco Health Solutions Inc. (NYSE:MHS).

Bed Bath & Beyond Inc. (NASDAQ:BBBY) reported net income above Wall Street’s expectations for the third quarter. Net income for the home furnishing store rose to $228.5 million (95 cents per share) vs. $188.6 million (74 cents per share) in the same quarter a year earlier. This marks a rise of 21.2% from the year earlier quarter. Revenue rose 6.8% to $2.34 billion from the year earlier quarter. BBBY beat the mean analyst estimate of 88 cents per share. Analysts were expecting revenue of $2.35 billion.

Competitors to Watch: Kirkland’s, Inc. (NASDAQ:KIRK), Williams-Sonoma, Inc. (NYSE:WSM), Pier one Imports, Inc. (NYSE:PIR), Walmart (NYSE:WMT), Target (NYSE:TGT), Costco (NASDAQ:COST).