Last week the profits of the retail big hitters were reported, and many reports are also due next week. These results could show how specialty stores are doing even as essential department stores continue to gain market share.
Urban Outfitters (URBN) will start the week with results on Monday, but most reports are expected on Tuesday, including Abercrombie & Fitch (ANF), Best Buy (BBY), Burlington Stores (BURL), Dollar Tree (DLTR), Gap ( GPS) and Nordstrom (JWN).
Urban Outfitters stock has skyrocketed after reporting a surprise profit in August, and some analysts have also warmed toward mall staples, though skeptics remain. As with most retailers, e-commerce will be the focus of Urban’s report, along with its Anthropologie brand, which has suffered given its focus on more expensive merchandise. Analysts are looking for earnings per share of 44 cents, down from 35 cents in the previous quarter and 56 cents the year before.
Abercrombie & Fitch is another shopping mall chain that is more focused on online sales. Analysts expect him to lose a penny per share; it landed 23 cents EPS in the previous quarter and the prior year period.
Barron’s argued that Best Buy could surprise on the upside, although that doesn’t guarantee stock gains, with high earnings expectations already in place. Analysts are looking for EPS of $ 1.71, matching the previous quarter and up from $ 1.13 the year before.
Expectations have also likely been raised for Burlington stores. As the Covid-19 pandemic hit low-cost retailers hard, given their lack of e-commerce, loyal shoppers quickly returned to stores. Recent reports from top peers TJX Cos. (TJX) and Ross Stores (ROST) were strong. Therefore, investors will be looking for equally strong numbers. Analysts are forecasting EPS of 16 cents, up from a loss of 56 cents in the previous quarter, but well below earnings of $ 1.55 per share a year earlier.
Dollar Tree is more of an essential retailer than a specialty retailer, and its fellow discounters have done well this year, given consumers’ focus on value. Still, the stock has fallen behind its rivals, even after reporting better-than-expected results in August, due to its greater exposure to discretionary and seasonal elements and operational issues. Dollar Tree stock is only up 2% this year, compared to Dollar General’s (DG) 36% gain.
The report will be another opportunity for the company to prove that it can keep up with its discount competitors. Consensus forecasts EPS of $ 1.15, down from $ 1.10 in the previous quarter and $ 1.08 in the third quarter of 2019.
Gap experienced a major reversal of fortunes in 2020: The mall’s mainstay was out of favor in the first half of the year, due to the impact of store closings on profits and its dispute over rents. Next are analyst upgrades, his deal with Kanye West and a robust second quarter with strong e-commerce growth. Investors will be watching to see if it can maintain its momentum, especially online. Analysts want Gap to report third quarter EPS of 31 cents; it lost 17 cents per share in the previous quarter and gained 53 cents in the third quarter of 2019.
With shares down more than 48% year-to-date, Nordstrom has been the worst performing of the group, even though it has traded roughly in line with its department store peers. Investors weren’t caring about Macy’s (M) ‘s recent earnings, although Kohl’s (KSS) fared better with its report, and the group as a whole capitalized on vaccination hopes. Nordstrom also recently got an upgrade. Analysts expect the company to lose one nickel per share, an improvement from last quarter’s loss of $ 1.54 per share, but still below the 81 cents Nordstrom gained a year ago .
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