Latest news with #RetailEarnings
CTV News
a day ago
- Business
- CTV News
Home Depot misses quarterly estimates on muted demand for big-ticket projects
A shopper checks out with her lumber at a Home Depot in Boston on May 17, 2014. (AP / Gene J. Puskar) Home Depot missed analysts' estimates for second-quarter sales and profit on Tuesday, as price-conscious homeowners reined in spending on large-scale renovations and focused on do-it-yourself projects. The top U.S. home-improvement chain's results kick off a busy earnings week for big-box retailers, including Walmart and Target, offering early clues on U.S. consumer spending and how these companies are navigating the turbulence of U.S. President Donald Trump's tariff policies. Home Depot and Lowe's are grappling with soft demand as higher mortgage rates discourage home purchases. As homeowners opt to stay put longer, spending has shifted toward smaller repair projects and maintenance, dampening sales of big-ticket renovation products. For instance, demand for kitchen and bath remodels has weakened, as those projects typically rely on financing that has become pricier. 'The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects,' CEO Ted Decker said. Visits to the Atlanta-based retailer were down 2.2 per cent in the second quarter, after a 3.9 per cent drop in the first quarter, according to foot traffic data from firm Home Depot maintained its fiscal 2025 sales and profit targets. It expects overall sales growth of about 2.8 per cent and adjusted per-share profit to decline two per cent from last year. The company posted net sales of US$45.28 billion for the quarter ended August 3, compared to analysts' estimate of $45.36 billion, according to data compiled by LSEG. Its adjusted profit came in at $4.68 per share, below expectations of $4.71. Shares of Home Depot were down marginally in premarket trading. Rival Lowe's, which is set to report quarterly results on Wednesday, also dipped. (Reporting by Savyata Mishra in Bengaluru; Editing by Sriraj Kalluvila)
Yahoo
a day ago
- Business
- Yahoo
Home Depot misses quarterly estimates on muted demand for big-ticket projects
(Reuters) -Home Depot missed analysts' estimates for second-quarter sales and profit on Tuesday, as price-conscious homeowners reined in spending on large-scale renovations and focused on do-it-yourself projects. The top U.S. home-improvement chain's results kick off a busy earnings week for big-box retailers, including Walmart and Target, offering early clues on U.S. consumer spending and how these companies are navigating the turbulence of President Donald Trump's tariff policies. Home Depot and Lowe's are grappling with soft demand as higher mortgage rates discourage home purchases. As homeowners opt to stay put longer, spending has shifted toward smaller repair projects and maintenance, dampening sales of big-ticket renovation products. For instance, demand for kitchen and bath remodels has weakened, as those projects typically rely on financing that has become pricier. "The momentum that began in the back half of last year continued throughout the first half as customers engaged more broadly in smaller home improvement projects," CEO Ted Decker said. Visits to the Atlanta-based retailer were down 2.2% in the second quarter, after a 3.9% drop in the first quarter, according to foot traffic data from firm Home Depot maintained its fiscal 2025 sales and profit targets. It expects overall sales growth of about 2.8% and adjusted per-share profit to decline 2% from last year. The company posted net sales of $45.28 billion for the quarter ended August 3, compared to analysts' estimate of $45.36 billion, according to data compiled by LSEG. Its adjusted profit came in at $4.68 per share, below expectations of $4.71. Shares of Hoe Depot were down marginally in premarket trading. Rival Lowe's, which is set to report quarterly results on Wednesday, also dipped. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Jackson Hole, key retail earnings, and fresh economic data: Here's everything the stock market is watching this week
Markets are kicking off another news- and data-heavy week. Investors are watching for the July Fed minutes, fresh housing data, and a slew of retail earnings. The spotlight will be on Fed Chair Jerome Powell's comments at Jackson Hole on Friday. Get ready for another big week for the stock market. Investors are staring at a handful of catalysts on the radar this week, with a slew of fresh earnings reports and key signals from the Fed on the docket. All could be influential in determining the path ahead for Fed rate cuts — a bullish catalyst investors have been waiting for all year. Odds for a cut next month have edged down slightly since last week, but markets are still pricing in an 85% chance the Fed will cut rates by a quarter of a percentage point at the September meeting, according to the CME FedWatch Tool. Here's what investors will be reacting to this week. Fed minutes Investors will be paying close attention to the minutes from the Fed's July policy meeting on Wednesday. The meeting minutes will give markets more insight into the central bank's thoughts about inflation, the strength of the US economy, and its outlook for rate cuts going forward. It comes at a crucial time for the Fed, which is at a crossroads over the direction of monetary policy. Powell has continued to signal this year that the Fed is comfortable keeping rates steady, as officials wait to see the inflationary impact of tariffs. But inflation data has been mixed recently. Consumer prices rose in-line with economists' expectations last month, but wholesale inflation rose more than expected in the latest producer price index, a sign that more inflationary pressures could be building. Meanwhile, the job market has shown signs of cooling. The US added fewer jobs than expected in July, while job gains in May and June were revised downward by a combined 258,000. "Traders will be closely watching the minutes for more insight into the future rate-cut trajectory," Aaron Hill, an analyst at FP Markets, wrote in a note. "Still, the slowdown in the labour market data, as noted above, firmly swung the pendulum in favour of easing policy next month." "At the margin, the minutes of the July 29-30 FOMC meeting (Wed) could fill in some blanks about how dug in the doves were and how intransigent the inflation hawks might've been in late July," Ed Yardeni, the president of Yardeni Research, wrote over the weekend. Retail earnings Investors are also waiting on a slew of earnings reports from major retailers this week. Here are the companies on deck to report their second-quarter results: Tuesday Wednesday Thursday Friday Home Depot (HD) TJX Companies (TJX) Lowe's (LOW) Target (TGT) Walmart (WMT) BJ Wholesale Club (BJ) The coming reports will give investors a glimpse into how the US consumer is faring. Weak earnings are likely to fan concerns about economic growth and raise expectations for a Fed rate cut next month. Markets are looking at the coming earnings reports as "key signposts" this week, top economist David Rosenberg said. "In terms of the mood of the US consumer, it is none too good (and as we saw in Friday's retail sale report, there is a trend in place towards dining in over dining out which is a sure sign of consumer frugality," the Rosenberg Research founder wrote in a note. Jackson Hole All eyes will be on Fed Chair Jerome Powell on Friday. The central bank chief is set to speak at the Fed's annual Jackson Hole symposium, where he's expected to set the agenda for future rate cuts. Markets are also eager to see if the Fed Chair comments on the independence of the central bank. President Donald Trump has continued to pressure Powell to lower interest rates, and is narrowing his list of potential Fed candidates. The speech could "well be a market-mover" this week, Rosenberg added. "One hawkish surprise could come from any commentary about how the weakness in the labor market of late has come largely from the supply side, and the 'break-even' for job growth to keep the unemployment rate steady is far lower than it used to be," Rosenberg wrote. "We expect the Federal Reserve to use Jackson Hole as an opportunity to prepare the markets and signal towards a 25 basis point cut in September and a potentially accommodating stance through year-end. Since this will be Powell's last Jackson Hole conference as Fed Chair, he'll likely reinforce the need for Fed independence from the Executive Branch," Richard Saperstein, the chief investment office of Treasury Partners, wrote in a note. Stocks could see some selling pressure once Powell speaks on Friday, strategists at Bank of America wrote in a note last week. "Dovish Powell at Jackson Hole = buy rumor, sell fact profit-taking," a team led by Michael Hartnett said. Read the original article on Business Insider
Globe and Mail
2 days ago
- Business
- Globe and Mail
Target, Amazon, Walmart and Home Depot are part of Zacks Earnings Preview
For Immediate Release Chicago, IL – August 18, 2025 – releases the list of companies likely to issue earnings surprises. This week's list includes Target TGT, Amazon AMZN, Walmart WMT and Home Depot HD. Retail Earnings Loom: What Can Investors Expect? Walmart shares have been standout performers this year, handily outperforming not just the broader market indexes and peers like Target but also the likes of Amazon and many members of the Magnificent 7 group. With the company on deck to report quarterly results on Thursday, August 21 st, it will be interesting to see if the stock can maintain its momentum after the results. The chart below shows the year-to-date performance of Walmart shares (green line, up +11.7%) relative to the Mag 7 group (blue line, up +15.6%), the S&P 500 index (red line, up +9.9%), Amazon (orange line, up +5.3%) and Target shares (bottom line in the chart, down -22.8%). We have also added Home Depot to the chart, as the home improvement retailer is also reporting results on Tuesday, August 19 th. We should keep in mind, however, that the performance pecking order shifts once the starting point of this chart shifts to April 8 th, when the market bottomed following the tariff-induced sell-off. While Target and Home Depot are laggards in the market's rebound from the April 8 th lows as well, Walmart lags behind the Mag 7, Amazon, and the S&P 500 index in that time period. Walmart shares' relatively subdued performance in the market's rebound from the April 8 lows reflects the company's low-beta status and defensive orientation. Today's Walmart has a big and growing digital operation, but the company's merchandise continues to be heavily indexed towards groceries and other essential and must-have necessities. This orientation towards essentials, coupled with Walmart's well-earned reputation for low prices, provides the company's results with a high degree of cyclical stability, hence the stock's defensive attributes. We should note, however, that a big contributing factor to Walmart's stock market momentum over the last few years reflects its ability to gain market share among higher-income households. Driving those gains has been a combination of higher-income households trading down to Walmart in response to the effects of inflation and also the ease of using the company's e-commerce abilities. Walmart has consistently reported market share gains across all income categories in recent quarterly releases, particularly in the high-income category. We expect further gains on that front in this quarterly report as well. Results likely benefited from pulled-forward demand in anticipation of tariffs, particularly in specific categories, such as electronics. Growth in e-commerce and steadily lower losses in that business, coupled with gains from third-party fulfillment and advertising, are some of the other areas that will benefit results this quarter. The e-commerce business in the U.S. is now profitable, and management views it as a significant contributor to earnings for the year. E-commerce accounts for an estimated 15% of total ex-gasoline sales at present, which management expects to eventually increase to more than double that level over time. Concerning tariffs, management noted earlier in the year that roughly two-thirds of U.S. sales were from domestically-sourced products, which gave them a degree of insulation from the tariffs issue compared to others. A significant part of this is Walmart's grocery business, which accounts for almost 60% of its sales, unlike Target, where groceries make up a much smaller portion of the revenue mix. Management has reiterated its commitment to maintaining a price advantage over rivals, a function of Walmart's size, the nature of its supplier relationships, and the increasing automation of its logistical operations. Walmart's value orientation and well-executed digital strategy have been key to gaining grocery market share by attracting higher-income households. Management has acknowledged some near-term challenges as a result of the uncertain macroeconomic environment; however, they remain confident of achieving their long-term plans and targets, including sales growth of at least +4% and operating income growth in excess of the sales growth pace. Walmart has consistently exceeded its targets over the last two years, with sales increasing by +5.5% and operating income rising by +9.5%. Walmart is expected to report $0.73 in EPS on $175.51 billion in revenues, representing a year-over-year change of +8.9% and +3.6%, respectively. Estimates have remained stable, although they have increased modestly since the quarter began. In terms of same-store sales, the expectation is of U.S. comps (ex-fuel) of +4.17%, which will compare to a +4.8% gain in the preceding quarter (vs. expectations of +4%) and a +4.3% gain in the year-earlier period (vs. expectations of +3.65%). A positive general merchandise read will also have positive read-throughs for Target. Same-store sales at Target are expected to decline -3.03% when it reports results on Wednesday, August 20 th. Target comps declined -3.80% in the preceding quarter (vs. expectations of -1.91%) and the year-earlier period of +2% (vs. expectations of +1.23%). With respect to the Retail sector 2025 Q2 earnings season scorecard, we now have results from 21 of the 32 retailers in the S&P 500 index. Regular readers know that Zacks has a dedicated stand-alone economic sector for the retail space, which is unlike the placement of the space in the Consumer Staples and Consumer Discretionary sectors in the Standard & Poor's standard industry classification. The Zacks Retail sector includes not only Walmart, Target, and other traditional retailers, but also online vendors like Amazon and restaurant players. The 21 Zacks Retail companies in the S&P 500 index that have reported Q2 results already belong mostly to the ecommerce and restaurant industries, though we have several restaurant companies on deck to report results this week as well. Total Q2 earnings for these 21 retailers that have reported are up +20.5% from the same period last year on +8.7% higher revenues, with 81% beating EPS estimates and an equal proportion beating revenue estimates. The EPS and revenue beats percentages for these online players and restaurant operators are tracking significantly above the historical averages for this group of companies, with the variance particularly notable on the revenues side. With respect to the elevated earnings growth rate at this stage, we like to show the group's performance with and without Amazon, whose results are among the 21 companies that have reported already. As we know, Amazon's Q2 earnings were up +37.9% on +13.3% higher revenues, as it beat EPS and top- line expectations. As we all know, digital and brick-and-mortar operators have been converging for some time now, with Amazon now a sizable brick-and-mortar operator after acquiring Whole Foods, and Walmart a growing online vendor. As we noted in the context of discussing Walmart's coming results, the retailer is steadily becoming a big advertising player, thanks to its growing digital business. This long-standing trend received a significant boost from the COVID-19 lockdowns. Earnings for the group outside of Amazon are up +2.3% on a +5.3% top-line gain, which represents a notable improvement from what we have seen from this ex-Amazon group in other recent periods. Key Earnings Reports This Week We have more than 100 companies on deck to report results this week, including 15 S&P 500 members. In addition to Walmart, Target, Home Depot, and Lowe's, other notable companies reporting this week include Palo Alto Networks, Toll Brothers, Estee Lauder, and others. The Q2 Earnings Scorecard Through Friday, August 15 th, we have seen Q2 results from 462 S&P 500 members or 92.4% of the index's total membership. Total earnings for these 462 index members are up +11.4% from the same period last year on +5.8% revenue gains, with 80.5% of the companies beating EPS estimates and 78.8% beating revenue estimates. The EPS and revenue beats percentages are tracking above historical averages, with the Q2 EPS beats percentage of 80.5% for the companies that have reported already comparing to the average for the same group of 77.6% over the preceding 20-quarter period (5 years). The Q2 revenue beats percentage of 78.8% compares to the 5-year average for this group of index members of 70.5%. Is the Turnaround in Estimates for Real? Looking at Q2 as a whole, combining the actuals from the 462 S&P 500 members with estimates for the still-to-come companies, the expectation is that earnings will be up +12.1% from the same period last year on +6% higher revenues, which would follow the +12.2% earnings growth on +4.6% revenue gains in the preceding period. Earnings for the current period (2025 Q3) are expected to be up +4.8% from the same period last year on +5.5% higher revenues. We noted in recent weeks that estimates for the current period have notably firmed up. Since the start of the period, estimates have increased for 5 of the 16 Zacks sectors. These include Tech, Finance, Energy, Retail, and Conglomerates. On the negative side, estimates remain under pressure for the remaining 11 sectors, with the biggest pressure at the Medical, Transportation, Basic Materials, Consumer Discretionary, Consumer Staples, and other sectors. For more details about the evolving earnings picture, please check out our weekly Earnings Trends report here >>>> Earnings Outlook Remains Strong & Improving: A Closer Look Why Haven't You Looked at Zacks' Top Stocks? Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year. Today you can access their live picks without cost or obligation. See Stocks Free >> Join us on Facebook: Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates. Media Contact Zacks Investment Research 800-767-3771 ext. 9339 support@ provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. Past performance is no guarantee of future results. Inherent in any investment is the potential for material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release. 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(AMZN): Free Stock Analysis Report Target Corporation (TGT): Free Stock Analysis Report Walmart Inc. (WMT): Free Stock Analysis Report The Home Depot, Inc. (HD): Free Stock Analysis Report
Bloomberg
28-05-2025
- Business
- Bloomberg
Bloomberg Intelligence: Fannie, Freddie to Keep US Guarantee If Taken Public, Trump Says
Watch Alix and Paul LIVE every day on YouTube: Bloomberg Intelligence hosted by Paul Sweeney and Alix Steel Today's Podcast Features are: Ben Elliott, Bloomberg Intelligence Consumer Finance Analyst, discusses President Donald Trump stating that the US government will retain guarantees and an oversight role over Fannie Mae and Freddie Mac even if they are taken public. Meera Pandit, Executive Director, Global Market Strategist, at JP Morgan Asset Management, discusses her outlook for the markets. Wall Street's rebound halted ahead of Nvidia's highly anticipated earnings report, with the S&P 500 retreating and the options market implying a post-results move of about 6% in either direction for the chipmaker. Mary Ross Gilbert, Bloomberg Intelligence, Senior Equity Analyst, Covering Retail, discusses earnings from Macy's and Abercrombie & Fitch. Macy's posted better-than-expected quarterly results, with comparable-store sales falling less than analysts had anticipated and revenue of $4.6 billion surpassing the average estimate. -Abercrombie & Fitch shares rose sharply after the retailer upped its full-year outlook. Steve Man, Bloomberg Intelligence Global Autos and Industrials Research Manager, discusses Stellantis appointing Antonio Filosa as its new CEO, effective June 23, to turn around the company after former boss Carlos Tavares was forced out.
