Retail Earnings Recap: Wal-Mart, J.C. Penney, The Gap and Ross Stores

It was a big week for retailers’ (NYSEARCA:XRT) earnings. Some companies fared better than others and when looking at retailers vs teens break down, you can get a good look.

Retailers

Wal-Mart Stores, Inc.(NYSE:WMT): Wal-Mart missed its third quarter earnings per share of $0.97 by $0.01 while its $109.5 billion revenues (a 8.2 percent year over year rise) beat estimates by $1.5 billion. Same store sales rose 1.3 percent, exceeding analyst forecasts of 0.3 percent

Walmart Currently has This Price Advantage for Holidays>>

The company boosted its fourth quarter earnings per share  to $1.42 – $1.48 and Bank of America Merrill Lynch (NYSE:BAC) reiterated its Buy Rating and Morgan Stanley (NYSE:MS) gave it a Neutral Rating. .

The stock closed at $57.23 on Friday, up 0.88 percent

J.C. Penney (NYSE:JCP): J.C. Penney’s reported an in-line third quarter earnings per share of $0.11 and a $4.0 billion revenue (down 4.8% year over year). Its comparable store sales declined 1.6 percent.

Management set a fourth quarter earnings per share guidance of $1.05-$1.15 and J.P.Morgan reiterated its Overweight Rating for the stock, citing the company needed to “re-establish investor credibility” and thinks “a combination of low expectations and new management bodes well for shares.”

The stock closed at $31.57 on Friday, down 0.32 percent.

The Gap, Inc. (NYSE:GPS):  The Gap saw its third quarter earnings per share of $0.38 beat estimates by $0.02 and its $3.5 billion revenue (a 2.0 decline year over year), came in-line.
In the company’s third quarter earnings conference call, Gap CEO Glenn Murphy noted positive sales gains in both e-commerce and stores in China but bluntly said of the quarter’s report:
“To me, there’s only one metric that matters: The company had a minus 5 comp in the third quarter, and that is unacceptable.”
The stock closed at $18.76 on Friday, down 2.55 percent.

Teen 

Abercrombie & Fitch Co. (NYSE:ANF): Abercrombie &Fitch third quarter earnings per share of $0.57 missed estimates by $0.15. This came from a higher-than-expected clothing costs and a weak gross margin. Revenue of $1.07 billion (a 21.5 increase year over year) came in-line.

Same-store sales increased seven percent year over year as compared to the second quarter’s nine percent increase.

The stock plummeted on Wednesday after its weak earnings but in the company’s third quarter earnings conference call,  it announced plans for price increases in 2012 to help boost margins.

Brean Murray defended the company and said it had faith in “robust European growth opportunities and that Asia also could be a burgeoning market.”

The stock closed at $47.30 on Friday, down 4.46 percent.

Ross Stores, Inc. (NASDAQ:ROST): Ross Stores reported in-line third quarter earnings per share of $1.26 and revenues of $2.04 billion (a 9.2 rise year over year). The company announced a two-for-one stock split, with a Nov. 29 record date.

The stock closed at $86.10 on Friday, down 0.98 percent.

Urban Outfitters, Inc. (NASDAQ:URBN): Urban Outfitters missed its third quarter revenue by $16 million with its reported $610 million number. Year over year revenue increased six percent. Earnings per share of $0.33 was in-line.

Adding to the poor third quarter report was a seven percent decline in same-store sales and a quarter over quarter margin decline in the fourth quarter.

Analysts responded to the news with Jefferies Group, Inc. (NYSE:JEF) reiterating its Underperform Rating; Deutsche Bank AG (NYSE:DB) maintained its Buy Rating and Piper Jaffray Companies (NYSE:PJC) Maintained its Overweight Rating.

The stock closed at $25.96 on Friday, down 0.84 percent.

Further Reading: Abercrombie & Fitch Earnings Conference Call Highlights: Acquisitions and Domestic Flagships>>

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