3 Popular Retail Stocks Buzzing Among Investors and Traders After Earnings
Wal-Mart Stores Inc. (NYSE:WMT) reported its results for the third quarter. Net income for Wal-Mart Stores Inc. fell to $3.34 billion (97 cents per share) vs. $3.44 billion (95 cents per share) a year earlier. This is a decline of 2.7% from the year earlier quarter. Revenue rose 7.4% to $109.5 billion from the year earlier quarter. The company fell in line with the mean estimate of 97 cents per share. Analysts were expecting revenue of $107.87 billion.
“Every business segment is stronger today than it was a year ago, and we delivered solid earnings growth for our shareholders in the third quarter,” said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. “Both Walmart U.S. and Sam’s Club exceeded comp sales guidance, and I’m pleased that the sales momentum positions us exceedingly well for the holidays. We also are pleased with the growth in both sales and operating income for Walmart International.
Competitors to Watch: Target Corporation (NYSE:TGT), Costco Wholesale Corp. (NASDAQ:COST), Best Buy (NYSE:BBY), Dollar General Corp. (NYSE:DG), eBay (NASDAQ:EBAY), Sears Holdings (NASDAQ:SHLD), BJ’s Wholesale Club, Inc. (NYSE:BJ), Family Dollar Stores, Inc. (NYSE:FDO), Gordmans Stores, Inc. (NASDAQ:GMAN), Dollar Tree, Inc. (NASDAQ:DLTR), Amazon.com, Inc. (NASDAQ:AMZN), and Fred’s, Inc. (NASDAQ:FRED).
Dick’s Sporting Goods Inc. (NYSE:DKS) reported net income above Wall Street’s expectations for the third quarter. Net income for Dick’s Sporting Goods Inc. rose to $41.5 million (33 cents per share) vs. $16.9 million (14 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter. Revenue rose 9.3% to $1.2 billion from the year earlier quarter. DKS reported adjusted net income of 32 cents per share. By that measure, the company beat the mean estimate of 26 cents per share. It beat the average revenue estimate of $1.16 billion.
“In the third quarter, we generated sales and earnings meaningfully above our expectations while increasing our margins and further strengthening our balance sheet,” said Edward W. Stack , Chairman and CEO. “As a result of the solid third quarter performance and our expectations for the fourth quarter, we have raised our full-year guidance.”
Competitors to Watch: Big five Sporting Goods Corp. (NASDAQ:BGFV), Golfsmith Intl. Hldgs., Inc. (NASDAQ:GOLF), Hibbett Sports, Inc. (NASDAQ:HIBB), Cabela’s Incorporated (NYSE:CAB), Sport Chalet, Inc. (NASDAQ:SPCHA), Dover Saddlery, Inc. (NASDAQ:DOVR), Winmark Corporation (NASDAQ:WINA), Gander Mountain Company (GMTA), Sports Direct Intl. Plc (NYSE:SPD), and Fairchild Corporation (FCHDQ).
Saks Incorporated (NYSE:SKS) reported its results for the third quarter. Net income for Saks Incorporated fell to $17.8 million (11 cents per share) vs. $36.3 million (20 cents per share) a year earlier. This is a decline of 51% from the year earlier quarter. Revenue rose 5.1% to $692.3 million from the year earlier quarter. SKS beat the mean analyst estimate of 9 cents per share. Analysts were expecting revenue of $701.8 million.
Stephen I. Sadove, Chairman and Chief Executive Officer of the Company, noted, “I am very pleased with the improvement in our operating performance for the third quarter and nine months ended October 29, 2011. Our 5.8% comparable store sales increase for the third quarter was achieved in spite of further reductions in our promotional activity. I am especially pleased with our 160 basis point improvement in our third quarter gross margin rate.”
Competitors to Watch: Macy’s, Inc. (NYSE:M), J.C. Penney Company, Inc. (NYSE:JCP), Dillard’s, Inc. (NYSE:DDS), Nordstrom, Inc. (NYSE:JWN), Kohl’s Corporation (NYSE:KSS), Sears Holdings Corporation (NASDAQ:SHLD), Coach (NYSE:COH), Vera Bradley (NASDAQ:VRA), Fossil Inc (NASDAQ:FOSL), Liz Claiborne (NYSE:LIZ), Guess? (NYSE:GES), Polo Ralph Lauren (NYSE:RL), The Estee Lauder Companies (NYSE:EL), Avon Products (NYSE:AVP) and Steven Madden (NASDAQ:SHOO).