4 Retail Stocks Lighting Up Screens After Earnings

Staples, Inc. (NASDAQ:SPLS) reported net income above Wall Street’s expectations for the second quarter. Net income for Staples, Inc. rose to $176.4 million (25 cents per share) vs. $129.8 million (18 cents per share) in the same quarter a year earlier. This marks a rise of 36% from the year earlier quarter. Rose 5.2% to $5.82 billion from the year earlier quarter. SPLS reported adjusted net income of 22 cents per share. By that measure, the company beat the mean estimate of 19 cents per share. It beat the average revenue estimate of $5.65 billion.

“Our second quarter results show that our team’s hard work continues to pay off,” said Ron Sargent, Staples’ chairman and chief executive officer. “Our core business is solid, our growth initiatives are building momentum, and we delivered better than expected earnings and cash flows.”

Competitors to Watch: OfficeMax Incorporated (NYSE:OMX), Office Depot, Inc. (NYSE:ODP), Target (NYSE:TGT), Wal-Mart (NYSE:WMT), and Best Buy (NYSE:BBY).

Abercrombie & Fitch (NYSE:ANF) reported net income above Wall Street’s expectations for the second quarter. Net income for the apparel store rose to $32 million (35 cents per share) vs. $19.5 million (22 cents per share) in the same quarter a year earlier. This marks a rise of 64.4% from the year earlier quarter. Rose 22.9% to $916.8 million from the year earlier quarter. ANF beat the mean analyst estimate of 29 cents per share. It beat the average revenue estimate of $880.1 million.

“We are pleased that our results for the quarter continued to reflect strong momentum, both in the US and Europe, resulting in a 71% increase in operating income for the quarter. Going forward, our focus remains very much on execution against our long-term strategy and roadmap objectives. Costing pressures will be greater in the second half of the year, and macroeconomic uncertainty has increased. However, our strong top-line momentum and overall performance for the past several quarters give us confidence that we are well positioned to navigate through this environment.”

Competitors to Watch: Urban Outfitters, Inc. (NASDAQ:URBN), American Eagle Outfitters (NYSE:AEO), The Buckle, Inc. (NYSE:BKE), Aeropostale, Inc. (NYSE:ARO), The Gap Inc. (NYSE:GPS), Pacific Sunwear of California, Inc. (NASDAQ:PSUN), The Wet Seal, Inc. (NASDAQ:WTSLA).

Target Corporation (NYSE:TGT) reported net income above Wall Street’s expectations for the second quarter.Net income for the discount store rose to $704 million ($1.03 per share) vs. $679 million (92 cents per share) in the same quarter a year earlier. This marks a rise of 3.7% from the year earlier quarter. Rose 4.6% to $16.24 billion from the year earlier quarter. TGT beat the mean analyst estimate of 97 cents per share. Analysts were expecting revenue of $16.15 billion.

“We’re very pleased with our second quarter financial results, which benefited from an acceleration in the pace of our comparable-store sales growth,” said Gregg Steinhafel, chairman, president, and chief executive officer of Target Corporation. “We continue to focus on strong execution of our strategy, preparing Target to perform well in a variety of economic environments.”

Competitors to Watch: Wal-Mart Stores, Inc. (NYSE:WMT), Costco Wholesale Corp. (NASDAQ:COST), Dollar Tree, Inc. (NASDAQ:DLTR), Dollar General Corp. (NYSE:DG), Gordmans Stores, Inc. (NASDAQ:GMAN), Family Dollar Stores, Inc. (NYSE:FDO), 99 Cents Only Stores (NYSE:NDN), Fred’s, Inc. (NASDAQ:FRED), and BJ’s Wholesale Club, Inc. (NYSE:BJ).

BJ’s Wholesale Club, Inc. (NYSE:BJ) reported net income above Wall Street’s expectations for the second quarter.Net income for BJ’s Wholesale Club, Inc. rose to $45.7 million (84 cents per share) vs. $35.8 million (67 cents per share) in the same quarter a year earlier. This marks a rise of 27.8% from the year earlier quarter. Rose 9.4% to $3.05 billion from the year earlier quarter. BJ beat the mean analyst estimate of 76 cents per share. Analysts were expecting revenue of $3 billion.

Laura Sen, BJ’s president and chief executive officer, said, “BJ’s outperformance of 10% versus our guidance reflected favorable merchandise margins, higher gas profitability and expense savings that exceeded plan. We are very excited about our positive sales momentum for the second quarter and first half of 2011. It is clear that our members are doing more of their weekly food shopping with us. And I believe that we have tremendous opportunities to further grow our business.”

Competitors to Watch: PriceSmart, Inc. (NASDAQ:PSMT), Costco Wholesale Corp. (NASDAQ:COST), Wal-Mart Stores, Inc. (NYSE:WMT), Target Corporation (NYSE:TGT), 99 Cents Only Stores (NYSE:NDN), Family Dollar Stores, Inc. (NYSE:FDO).

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