Earnings Roundup: 7 Top Retail Stocks to Analyze After Earnings

Top Dow (NYSE:DIA) and S&P 500 (NYSE:SPY) stocks announced earnings this week. Here’s your Cheat Sheet to their announcements and business outlooks:

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Wal-Mart Stores, Inc. (NYSE:WMT) reported its results for the second quarter. Net income for Wal-Mart Stores, Inc. rose to $3.8 billion ($1.09 per share) vs. $3.6 billion (97 cents per share) in the same quarter a year earlier. This marks a rise of 5.7% from the year earlier quarter. Rose 5.4% to $109.37 billion from the year earlier quarter. WMT was about in line with expectations as the mean analyst estimate of $1.08 per share. Analysts were expecting revenue of $108.26 billion.

“We are reporting today $1.09 in earnings per share from continuing operations, a 12.4 percent increase over last year’s second quarter,” said Mike Duke, Wal-Mart Stores, Inc. president and chief executive officer. “Our EPS is near the top of our guidance. “I’m encouraged by the sales improvement in our Walmart U.S. stores. Comp sales have increased sequentially month to month within the quarter. In fact, this was the best quarterly performance since the third quarter of fiscal 2010,” Duke continued. “We’re committed to deliver positive comp sales by widening the gap on price, and we have a specific plan to deliver EDLP to every customer.”

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).

Home Depot, Inc. (NYSE:HD) reported net income above Wall Street’s expectations for the second quarter.Net income for the home improvement store rose to $1.36 billion (87 cents per share) vs. $1.19 billion (72 cents per share) in the same quarter a year earlier. This marks a rise of 14.3% from the year earlier quarter. Rose 4.2% to $20.23 billion from the year earlier quarter. HD beat the mean analyst estimate of 82 cents per share. Analysts were expecting revenue of $19.96 billion.

“Our second-quarter results were driven by a rebound in our seasonal business, storm-related repairs and strength in our core categories,” said Frank Blake, chairman & CEO. “We continue to deliver a strong operating performance while also investing in customer service and our merchandising initiatives. I would like to thank our associates for their hard work and dedication. It is their efforts that enabled us to deliver these results.”

Competitors to Watch: Lowe’s Companies, Inc. (NYSE:LOW), Builders FirstSource, Inc. (NASDAQ:BLDR), Lumber Liquidators Hldgs., Inc. (NYSE:LL), Sherwin-Williams (NYSE:SHW), Sears Holdings (NASDAQ:SHLD), Target (NYSE:TGT) and Wal-Mart (NYSE:WMT).

TJX Companies Inc. (NYSE:TJX) reported its results for the second quarter. Net income for TJX Companies Inc. rose to $348.3 million (90 cents per share) vs. $305 million (74 cents per share) in the same quarter a year earlier. This marks a rise of 14.2% from the year earlier quarter. Rose 7.9% to $5.47 billion from the year earlier quarter. TJX beat the mean analyst estimate of 89 cents per share. Analysts were expecting revenue of $5.43 billion.

Carol Meyrowitz, Chief Executive Officer of The TJX Companies, Inc., stated, “These results mark the sixth consecutive year of very strong second quarter operating performance. We believe that this speaks to the consistency of TJX and the great flexibility of our business model, which has enabled us to succeed year after year, through both strong and weak economic environments. Customer traffic continues to be up over large increases in the last two years, as our tremendous values attract new and loyal customers. As we enter the third quarter, we see a marketplace full of fabulous brands and fashions and we will be utilizing the flexibility in our inventory position to take advantage of these opportunities. In addition, we will be significantly increasing our marketing penetration in the second half of the year, leveraging our marketing spend, which we believe will also draw consumers to our stores.”

Competitors to Watch: Stein Mart, Inc. (NASDAQ:SMRT), Wal-Mart Stores, Inc. (NYSE:WMT), Ross Stores, Inc. (NASDAQ:ROST), Fred’s, Inc. (NASDAQ:FRED), J.C. Penney (NYSE:JCP), Target Corporation (NYSE:TGT), Macy’s, Inc. (NYSE:M), and Dillard’s, Inc. (NYSE:DDS).

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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