Home Depot, Kohl's Report Disappointing Results, TJX Sales Strong

homedepot nov19

Brick-and-mortar retailers reported mixed results as they head into the holiday season, as department store chain Kohl's Corp. (KSS) and Home Depot Inc.'s (HD) sales dropped, while discount retailer TJX Cos. (TJX) recorded strong sales growth.

Shares of Home Depot slipped 5% after the home-improvement retailer's third-quarter sales missed estimates and the company trimmed its full-year sales outlook for second time in three months.

The company said it expects sales to grow by about 1.8% and comp sales for the comparable 52-week period to increase around 3.5%. Previously, the company projected sales growth of 2.3% and comp sales growth of 4.0%.

Home Depot reaffirmed its fiscal-year earnings growth of about 3.1% from last year's $10.03 per share.

The retailer reported third-quarter earnings of $2.53 per share, up from $2.51 per share last year. On average, 30 analysts polled by Thomson Reuters expected the company to report earnings of $2.52 per share for the quarter.

Third-quarter sales were $27.2 billion, an increase of 3.5% from a year ago. Comparable sales were up 3.6% and comparable sales in the U.S. were up 3.8%. Analysts expected revenues of $27.53 billion for the quarter.

Meanwhile, shares of Kohl's tanked 18% after the department store chain reported weaker-than-expected third-quarter earnings and cut its full-year guidance.

Menomonee Falls, Wisconsin-based Kohl's reported third-quarter profit of $123 million or $0.78 per share, down from $161 million or $0.98 per share. Adjusted earnings dropped to $0.74 per share from $0.98 per share last year. Revenues for the quarter dropped to $4.625 billion from $4.628 billion last year.

Analysts estimated earnings of $0.86 per share on revenues of $4.40 billion.

Kohl's lowered its bottom-line view for fiscal 2019. The company now expects earnings of $4.75 to $4.95 per share, down from the previous guidance of $5.15 to $5.45. Analysts currently estimate earnings of $5.19 per share.

TJX reported third-quarter results that beat expectations, however, the retailer issued a weak outlook for the holiday quarter.

Net income rose to $828.3 million or $0.68 per share from $762.3 million or $0.61 per share last year. Sales grew to $10.45 billion from $9.83 billion last year. Analysts estimated earnings of $0.66 cents and sales of $10.32 billion.

Same-store sales rose 4%, including a 4% increase for Marmaxx in the U.S. and 6% increase for TJX international.

Looking forward to the holiday quarter, TJX expects earnings of $0.74 to $0.76. Analysts currently estimate earnings of $0.77.

HD is trading down $10.58 or 4.43%, at $228.27. KSS is currently trading on the NYSE at $48.38, down $10.02 or 17.16%. TJX is currently trading at $60.31, up $0.76 or 1.28%.

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