Third Quarter Archives | HomePage News https://www.homepagenews.com/tag/third-quarter/ the home + housewares business authority Thu, 30 Nov 2023 21:07:41 +0000 en-US hourly 1 https://wordpress.org/?v=6.3.2 https://www.homepagenews.com/wp-content/uploads/2021/04/cropped-favicon-32x32.png Third Quarter Archives | HomePage News https://www.homepagenews.com/tag/third-quarter/ 32 32 Kroger Q3 Beats Wall Street Despite Consumer Spending Reluctance https://www.homepagenews.com/retail-articles/kroger-q3-beats-wall-street-despite-consumer-spending-reluctance/ https://www.homepagenews.com/retail-articles/kroger-q3-beats-wall-street-despite-consumer-spending-reluctance/#respond Thu, 30 Nov 2023 21:07:37 +0000 https://www.homepagenews.com/?p=291610 Despite tighter consumer spending, Kroger stated that the flexibility of its business model helped the company navigate the third quarter, when it topped a Wall Street estimate on earnings and revenue.

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Despite tighter consumer spending, Kroger stated that the flexibility of its business model helped the company navigate the third quarter when it topped a Wall Street estimate on earnings and revenue.

Company net earnings were $646 million, or 88 cents per diluted share, versus $398 million, or 55 cents per diluted share, in the year-past quarter. Adjusted for one-time events, net earnings were $698 million, or 95 cents per diluted share, Kroger pointed out, versus $643 million, or 88 cents per diluted share, in the year-prior period.

An analyst consensus estimate published by Yahoo Finance anticipated adjusted diluted earnings per share of 91 cents and revenues of $33.88 billion.

Identical store sales without the effect of fuel price fluctuations slipped 0.6% in the quarter year over year. The company asserted that idents without fuel would have grown 1% in the period if not for the reduction in pharmacy sales from the termination of Kroger’s agreement with Express Scripts effective December 31, 2022.

Sales were $33.96 billion versus $34.2 billion in the year-previous quarter. Operating profit was $912 million versus $841 million in the year-before period, Kroger noted, while adjusted operating profit was $1.02 billion versus $1.09 billion.

In announcing the financial results, company chairman and CEO Rodney McMullen said, “Kroger’s third-quarter results highlight the strength and diversity of our business model in a challenged operating environment, as strong fuel performance and growth in our alternative profit businesses supported continued adjusted net earnings per diluted share growth. As consumer spending tightens, we are focused on providing customers with exceptional value. By maintaining our long-term commitment to lower prices, personalized promotions and rewards, we are growing households and increasing loyalty, positioning Kroger for sustainable future growth. We appreciate our associates and continue to invest in wages, benefits and training, which is resulting in continued improvements in our customer experience.”  

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Big Lots Adds to Executive Suite As Q3 Comps Slide https://www.homepagenews.com/retail-articles/big-lots-adds-to-executive-suite-as-q3-comps-slide/ https://www.homepagenews.com/retail-articles/big-lots-adds-to-executive-suite-as-q3-comps-slide/#respond Thu, 30 Nov 2023 19:47:17 +0000 https://www.homepagenews.com/?p=291567 Big Lots, still trying to build traction on its turnaround, posted a third-quarter comp decline even as earnings and revenue exceeded or met a Wall Street estimate.

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Big Lots, still trying to build traction on its turnaround, posted a third-quarter comp decline even as earnings and revenue exceeded or met a Wall Street estimate.

The company also announced the appointment of former Burlington Stores executive Kristen Cox to senior vice president, chief stores officer. Former Big Lots executive Seth Marks returns to the retailer in the newly established role of senior vice president, extreme value sourcing. 

Net income for Big Lots was $4.7 million, or 16 cents per diluted share, versus a net loss of $103 million, or $3.56 per diluted share, in the year-earlier period, the company reported. Adjusted for one-time events, net loss was $127.9 million or $4.38 per diluted share, versus net loss of $86.7 million, or $2.99 per diluted share, in the year-prior quarter.

An analyst consensus estimate published by Yahoo Finance called for a loss of $4.66 per diluted share and revenues of $1.03 billion.

Comparable sales tumbled 13.2%. Net sales were $1.03 billion versus $1.2 billion in the year-before quarter.

Operating profit was $19.7 million versus an operating loss of $130.8 million in the year-previous period.  Adjusted operating loss was $113.9 million versus $109.1 million. 

Bruce Thorn, Big Lots president and CEO, said home categories continue to struggle especially given consumer wariness about big-ticket purchases. He noted Big Lots had seen some sequential improvement in seasonal items. The company also has been able to rebuild its furnishings assortment after last year’s sudden closure of United Furniture, a key vendor.

In announcing the financial results, Thorn said, “Although the environment remains challenging, we continued to make significant progress in turning around our business.  Our key strategic actions are building momentum, and we continue to play offense with our efforts to deliver incredible bargains and communicate unmistakable value. As a result, we are now on track to deliver an adjusted Q4 operating result ahead of last year, which would mark the first quarter of year-over-year improvement in nearly three years, and we expect quarterly year-over-year improvements to continue through 2024.”

As for third-quarter results, Thorn said, “We were able to deliver on or exceed our beginning-of-quarter guidance on all key metrics. We posted a sequential improvement in comp sales, significant year-over-year improvement in gross margin rate, and adjusted SG&A well below last year despite absorbing additional expense related to the recent sale/leaseback of our California distribution center and 23 owned stores. We believe the improvements in Q3 were driven by the five key actions that underlie our strategy, which are to own bargains, communicate unmistakable value, increase store relevance, win with omnichannel and drive productivity.

“Additionally, we are on track to achieve over $100 million of SG&A cost savings prior to Project Springboard benefits for the year,” Thorn continued. “Project Springboard is off to a strong start and on track to deliver $200 million of bottom-line benefits, spanning gross margin and SG&A, of which we expect a high proportion to be realized on a run-rate basis by the end of 2024. To support our ongoing turnaround, our efforts to aggressively manage costs, inventory and capital expenditures, as well as monetize our assets with completion of a $306 million sale/leaseback in the quarter, have allowed us to significantly strengthen our balance sheet. Our ongoing efforts are providing us with ample liquidity to weather the macroeconomic challenges, even if they are prolonged.” 

Cox will oversee the development and implementation of operational strategies to drive sales, improve margins and enhance customer service across all stores, filling the role left vacant by the retirement of Nick Padovano earlier this year, Big Lots reported. Marks rejoins Big Lots from Channel Control Merchants, for which he most recently served as the chief merchandising officer. CCM bills itself as a reverse logistics retailer selling products through a network of physical stores located across the Southeast, Texas and Canada.

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Dollar Tree Comps Gain but Revenue, Earnings Fall Short of Estimates https://www.homepagenews.com/retail-articles/dollar-tree-comps-gain-but-revenue-earnings-fall-short-of-estimates/ https://www.homepagenews.com/retail-articles/dollar-tree-comps-gain-but-revenue-earnings-fall-short-of-estimates/#respond Wed, 29 Nov 2023 17:39:27 +0000 https://www.homepagenews.com/?p=291451 In the third quarter, Dollar Tree fell short of Wall Street estimates for revenues and earnings but posted solid comp store sales and pointed Dollar Tree fell short of Wall Street estimates for revenues and earnings in the third quarter, but the retailer posted solid comp store sales and pointed to market share gains in a conference call.

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Dollar Tree fell short of Wall Street estimates for revenues and earnings in the third quarter, but the retailer posted solid comp store sales and pointed to market share gains in a conference call.

Net income was $212 million, or 97 cents per diluted share, versus $266.9 million, or $1.20 per diluted share, in the year-before quarter.

A Yahoo Finance-published analyst consensus estimate called for earnings per diluted share of $1.01 and revenues of $7.4 billion

Comparable sales were up 3.9% with Dollar Tree comps up 5.4% and Family Dollar comps up 2%, the company reported.

Net sales were $7.31 billion and other revenue was $5.7 billion, or $7.31 billion after rounding, versus net sales of $6.94 billion and other revenue was $3.3 million for total revenues of $6.94 billion after rounding in the year-earlier quarter. Operating income was $301.7 million versus $381.3 million in the year-prior period, Dollar Tree maintained.

Among third-quarter business highlights noted by Dollar Tree are the opening of 197 new stores and the expansion of the multi-price Plus offering to 870 additional Dollar Tree locations.

In a conference call, Rick Dreiling, Dollar Tree president and CEO, said the company’s sales momentum continues to be mostly traffic-driven as it attracts new customers and builds unit and dollar market share. Inflationary pressure, reduced government benefits and depleted savings have negatively affected Dollar Tree’s lower-income consumers, Dreiling noted. Dollar Tree CEO Jeff Davis added shrink was another factor impacting results in the quarter.

In announcing the company’s financial performance, Dreiling said, “Our third-quarter results were within our expectations thanks to continued execution across all aspects of our business transformation. In a challenging environment, our performance was among the best in retail as we continue to grow traffic, unit and sales per square foot.”

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Nordstrom Q3 Earnings Beat Street but Revenues Lag https://www.homepagenews.com/retail-articles/nordstrom-q3-earnings-beat-street-but-revenues-lag/ https://www.homepagenews.com/retail-articles/nordstrom-q3-earnings-beat-street-but-revenues-lag/#respond Mon, 27 Nov 2023 18:40:32 +0000 https://www.homepagenews.com/?p=291328 Nordstrom beat a Wall Street estimate on earnings in the third quarter while falling short on revenue as the retailer winds down Canadian operations and deals with softer consumer spending.

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Nordstrom beat a Wall Street estimate on earnings in the third quarter while falling short on revenue as the retailer winds down Canadian operations and deals with softer consumer spending.

Net earnings were $67 million, or 41 cents per diluted share, versus a loss of $20 million, or 13 cents per diluted share, in the year-before quarter, the company stated. Adjusted for one-time events, earnings per diluted share were 25 cents versus 20 cents for the year-previous period.

In the quarter, net sales were $3.2 billion and revenues were $3.32 billion versus $3.43 billion and $3.55 billion, respectively, in the period a year earlier, Nordstrom noted. Gross merchandise value decreased 7.1% year over year in the quarter.

A MarketBeat-published analyst consensus estimate called for earnings per adjusted diluted sales of 13 cents and revenues of $3.41 billion.

For the Nordstrom banner, net sales decreased by 9.4% and GMV decreased by 9.8% compared with the 2022 period, the company stated. The wind-down of Canadian operations had a negative impact on banner net sales of 410 basis points. The timing shift of the Nordstrom Anniversary Sale had a positive effect on banner revenues of 300 basis points versus the 2022 period, the company noted.

At the Nordstrom Rack banner, net sales slipped 1.8% compared with the 2022 quarter, the company indicated. The elimination of store fulfillment for Nordstrom Rack digital orders during the 2022 third quarter negatively impacted 2023 sales by approximately 100 basis points in the most recent third quarter. Nordstrom has announced plans to open 17 additional Rack stores, including seven in California.

Digital sales declined 11.3% in the quarter year over year. The elimination of store fulfillment for Nordstrom Rack digital orders during the 2022 third quarter negatively affected digital sales by 100 basis points in the most recent third quarter. The timing shift of the Anniversary Sale had a positive impact on company digital sales of 400 basis points compared with the 2022 third quarter. Digital sales represented 34% of total sales during the 2023 third quarter, Nordstrom maintained.

“In the third quarter we continued to make progress against our priorities, and we’re especially pleased with the resulting improvements in gross margin and earnings,” said Nordstrom CEO Erik Nordstrom. “Given continued uncertainty and softening consumer spend, we’re remaining agile and focused on serving our customers.”

Pete Nordstrom, the retailer’s president, said, “Thanks to solid execution by our merchants, we’re heading into holiday in a favorable inventory position across both banners. We have a strong and relevant assortment of brands and products we know our customers respond to.”

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Burlington Posts Strong Q3 Comps As It Details Major Growth Plans https://www.homepagenews.com/retail-articles/burlington-posts-strong-q3-comps-as-it-details-major-growth-plans/ https://www.homepagenews.com/retail-articles/burlington-posts-strong-q3-comps-as-it-details-major-growth-plans/#respond Mon, 27 Nov 2023 17:25:25 +0000 https://www.homepagenews.com/?p=291314 While announcing substantial growth intentions, Burlington Stores posted third-quarter earnings and revenues just shy of a Wall Street estimate but with strong comparable sales growth.

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While announcing substantial growth intentions, Burlington Stores posted third-quarter earnings and revenues just shy of a Wall Street estimate but with strong comparable sales growth.

Net income was $48.6 million, or 75 cents per diluted share, versus $16.8 million, or 26 cents per diluted share, in the year-earlier quarter. Adjusted for one-time events, the company reported that net income was $64 million, or 98 cents per diluted share, versus $28 million, or 43 cents per diluted share, in the year-previous period. 

A Zacks Investment Research-published analyst consensus estimate called for earnings per adjusted diluted sales of 99 cents and revenues of $2.31 billion.

Comparable sales advanced 6% in the quarter year over year, Burlington stated. Net sales were $2.28 billion and net revenue was $2.29 billion versus $2.04 billion and $2.04 billion respectively, in the year-prior period. Other revenue in the year-before period was $4.8 billion, which is the amount of revenue that exceeded sales, although this was hidden in the rounding process.

In looking forward, Burlington noted that corporate plans call for opening about 80 net new stores by the end of the current fiscal year. Earlier this year, Burlington acquired 62 leases from bankrupt Bed Bath & Beyond.

Michael O’Sullivan, Burlington CEO, said in a conference call that the third quarter benefited from a strong back-to-school selling season but was pressured by warm temperatures in much of the United States during October, which cut into Burlington’s traditionally and proportionally large outerwear business.

In looking ahead, O’Sullivan said that Burlington’s plans include increasing total sales to about $16 billion over the next five years with an average annual growth rate in the low double digits. New stores, comp sales and improved operating margins would contribute to ongoing growth. Over the next five years, O’Sullivan said, Burlington expects to open 500 net new stores on its base of more than 1,000.

“These will be comprised mostly of our 25,000 square foot prototype located in busy strip malls,” he said.

The company also anticipates relocating and downsizing older and larger stores. O’Sullivan said Burlington would relocate or downsize two to three dozen stores each year. 

In announcing the financial results, O’Sullivan said, “We were pleased with our performance during the third quarter. We had a strong trend in August and September, and this drove 6% comparable store sales growth for the full quarter despite the negative impact of unseasonably warm weather in October. This trend, together with strong merchandise margins, delivered earnings at the high end of expectations.”

O’Sullivan added that November has begun well “helped by cooler weather at the beginning of the month. We feel very good about how we are set up for holiday. That said, the critical high-volume weeks are still ahead of us, and we recognize that there is a lot of uncertainty in the external environment, so we are maintaining our previously issued Q4 guidance.”

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Best Buy Preps for Improved Market Conditions Following ‘Uneven’ Q3 https://www.homepagenews.com/retail-articles/best-buy-preps-for-improved-market-conditions-following-uneven-q3/ https://www.homepagenews.com/retail-articles/best-buy-preps-for-improved-market-conditions-following-uneven-q3/#respond Tue, 21 Nov 2023 20:11:07 +0000 https://www.homepagenews.com/?p=291293 In an “uneven” demand environment, Best Buy beat a Wall Street estimate on earnings, missed one on sales and noted its efforts to reconstitute operations to position itself for better market conditions.

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In an “uneven” demand environment, Best Buy beat a Wall Street estimate on earnings, missed one on sales and noted its efforts to reconstitute operations to position itself for better market conditions.

Net earnings were $263 million, or $1.21 per diluted share, versus $277 million, or $1.22 per diluted share, in the year-past quarter, the company reported. Adjusted for one-time events, earnings per diluted share were $1.29 per diluted share versus $1.38 per diluted share in the year-earlier period.

An analyst consensus estimate published by Yahoo Finance called for earnings per adjusted diluted share of $1.18 and revenues of $9.9 billion.

Comparable stores sales fell 6.9% for the company, with domestic comps down 7.3% and international comps down 1.9%. Domestic online comp sales fell 9.3%.

Best Buy sales were $9.76 billion versus $10.59 billion in the year-before quarter. Domestic segment sales were $9 billion versus $9.8 billion in the year-previous period. In the quarter, the biggest drivers of the comp decline on a weighted basis were appliances, computing, home theater and mobile phones, Best Buy indicated, partially offset by growth in gaming.

Operating income was $354 million versus $365 million in the year-earlier quarter while adjusted operating income was $369 million versus $412 million.

In a conference call, Corie Barry, Best Buy CEO, pointed to gains in the company’s membership program, with participants who tend to generate higher sales than customers who have not enrolled. Barry indicating Best Buy expects it to generate an approximately 35 basis point year-over-year operating income rate expansion in the current annum. Membership is helping to boost operations, as is a new app feature, Best Buy Drops, which gives consumers access to new and special product rollouts with digital sales associates accessible by phone, chat and the company’s virtual store. The initiatives also have helped introduce new tech and unique items as well as new product categories that Best Buy has added, including Beauty and Wellness. The company has been right-sizing store space, particularly as regards gaming, to accommodate growing product lines including Lovesac home furnishings, Barry noted.

In announcing the financial results, Barry said, “Today, we are reporting better-than-expected profitability on slightly softer-than-expected revenue for the third quarter. These results demonstrate our ongoing, strong operational execution as we navigate through the near-term sales pressure our industry has been experiencing for the past several quarters. In the more recent macro environment, consumer demand has been even more uneven and difficult to predict. Based on the sales trends in Q3 and so far in November, we believe it is prudent to lower our annual revenue outlook. The midpoint of our annual non-GAAP diluted EPS guidance is slightly higher than the midpoint of our original guidance as we entered the year. We are excited for the important holiday season and are prepared for a customer who is very deal-focused with promotions and deals for all budgets, new shopping experiences, an expanded product assortment, and fast and free fulfillment.”

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Lowe’s Q3 Hit by Softer Consumer Big-Ticket Spending https://www.homepagenews.com/retail-articles/lowes-q3-hit-by-softer-consumer-big-ticket-spending/ https://www.homepagenews.com/retail-articles/lowes-q3-hit-by-softer-consumer-big-ticket-spending/#respond Tue, 21 Nov 2023 18:51:30 +0000 https://www.homepagenews.com/?p=291275 Lowe's Cos. did better than Wall Street expected on earnings in the third quarter but fell short on revenues as do-it-yourself customers stepped back from bigger-ticket purchases.

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Lowe’s Cos. did better than Wall Street expected on earnings in the third quarter but fell short on revenues as do-it-yourself customers stepped back from bigger-ticket purchases.

Net earnings were $1.77 billion, or $3.06 per diluted share, versus $154 million, or 25 cents per diluted share, in the year-earlier quarter. In the year-past period, earnings per share adjusted for one-time events was $3.27, Lowe’s pointed out.

Comparable sales decreased 7.4% in the quarter year over year due to a decline in DIY discretionary spending among consumers, partially offset by positive professional customer comp sales, the company stated. 

Net sales were $20.47 billion versus $23.48 billion in the year-previous quarter. Operating income was $2.7 billion versus $924 million in the year-before period.

“In the third quarter, the company delivered strong operating performance and improved customer service despite a greater-than-expected pullback in DIY discretionary spending, particularly in bigger ticket categories,” said Marvin Ellison, Lowe’s chairman, president and CEO. “Given our 75% DIY mix, the DIY pressure disproportionately impacted our third quarter comp performance. At the same time, our investments in pro continue to resonate, resulting in positive pro comps again this quarter. As we look ahead, Lowe’s is committed to offering value and convenience this holiday season, helping our customers save time and money.”

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Kohl’s CEO Talks Sephora, Home Goods Expansion After Q3 Earnings Beat https://www.homepagenews.com/retail-articles/kohls-q3-earnings-beat-street-as-ceo-talks-sephora-home-goods-expansion/ https://www.homepagenews.com/retail-articles/kohls-q3-earnings-beat-street-as-ceo-talks-sephora-home-goods-expansion/#respond Tue, 21 Nov 2023 17:36:54 +0000 https://www.homepagenews.com/?p=291250 Home outperformed Kohl’s overall business in the third quarter when earnings beat a Wall Street estimate but revenues fell short.

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Home outperformed Kohl’s overall business in the third quarter when earnings beat a Wall Street estimate but revenues fell short.

The ongoing expansion of the home business is one of several initiatives, including the growth of the Sephora business, that Kohl’s is counting on to propel operations in 2024, Tom Kingsbury, Kohl’s chief executive officer, said in a conference call.

Net income was $59 million, or 53 cents per diluted share, versus $97 million, or 82 cents per diluted share, in the year-previous quarter, the company reported.

Kohl’s beat a Yahoo Finance-published analyst average estimate of 35 cents per diluted share but fell short of a $3.91 billion revenue estimate.

Comparable store sales decreased 5.5% in the quarter year over year, the company stated, with digital comps particularly soft. Net sales in the quarter were $3.84 billion versus $4.05 billion in the year-before period. Operating income was $157 million versus $200 million in the year-past quarter.

In the conference call, Tom Kingsbury, Kohl’s chief executive officer, said the third quarter results reflected strong gross margin and expense management but ran up against softer-than-expected demand, some challenges related to weather and macro-economic pressure on consumers.

On the digital side, e-commerce sales slid 16.5% due in part to a decision the company made to eliminate online-only promotions in favor of omnichannel pricing across the enterprise. Kingsbury insisted that omnichannel pricing is the right strategy for Kohl’s even if it will hit digital sales short term. Store comps slipped 1% in the quarter, when back-to-school performance was solid, with higher than expected sales, but warmer weather in September into October across some regions hurt demand for fall merchandise.

“While I don’t like blaming weather for performance, the fall transition period has historically proven to be when Kohl’s apparel-intensive business is most sensitive to weather fluctuations,” Kingsbury said.

Moves to expand home, beauty, gifting and impulse should help “de-weather” Kohl’s business, Kingsbury noted.

He added, “I am pleased with our positive year-to-date store performance driven by strong growth in Sephora and, more recently, our home and gifting initiatives. In addition, we have furthered our efforts to simplify our value strategies, manage expenses tightly and reduce inventory by 13% at the end of the third quarter.”

Kingsbury indicated that the initiatives Kohl’s has launched or invigorated this year will bear fruit in 2024 but will take some time to gather momentum. Still, he said Kohl’s expects Sephora to be a $2 billion business by 2025. Then, the company expanded its upfront gifting presentation for the holidays with 50% new products. As part of a wider initiative to update store presentation, Kohl’s is adding fixtures to expand its impulse purchase assortment.

Home decor and associated product expansion fills a void in Kohl’s assortment and represents a category the company’s customers have shopped elsewhere, Kingsbury said. To make the most of the home opportunity, he maintained that Kohl’s has invested in the category merchandising operation and has formed new vendor relationships. In the third quarter, he said, Kohl’s began to flow new merchandise into stores with key segments including barware, wall art, glassware, ceramic home decor, botanicals and lighting. The company will further expand the home assortment as shoppers begin to recognize Kohl’s as a destination for a wider range of household goods, he said, referencing that the home business had outperformed the company in the quarter.

In announcing third-quarter results, Kingsbury said, “Our strategies to reposition Kohl’s for improved sales and earnings performance remain in the early stages. The work we have done in 2023 will continue to build momentum and set us up to be successful in 2024.”

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Ross Rides Value Wave to Q3 Wall Street Beat https://www.homepagenews.com/retail-articles/ross-rides-value-wave-to-q3-wall-street-beat/ https://www.homepagenews.com/retail-articles/ross-rides-value-wave-to-q3-wall-street-beat/#respond Fri, 17 Nov 2023 19:07:23 +0000 https://www.homepagenews.com/?p=291121 Value across its namesake and dd’s Discounts stores helped propel Rose Stores to a third-quarter Wall Street beat on sales and earnings.

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Value across its namesake and dd’s Discounts stores helped propel Rose Stores to a third-quarter Wall Street beat on sales and earnings.

In the quarter, Ross posted net earnings of $447.3 million, or $1.33 per diluted share, versus $342 million, or $1 per diluted share, in the year-past period.

Ross beat a Zacks Investment Research-published consensus analyst earnings per diluted share estimate of $1.22 as well as a revenue estimate of $4.84 billion.

Comparable sales for the quarter gained 5% year over year. Net sales were $4.92 billion, up from $4.57 billion in the year-previous period, the company noted. 

Barbara Rentler, Ross CEO said in a conference call that home business performance came in slightly below chain average. Otherwise, cosmetics, accessories and shoes delivered the strongest sales performances, while geographic gains were broad-based.

In introducing the financial results, Rentler said, “We are pleased that both sales and earnings outperformed our expectations for the quarter as customers responded favorably to the terrific values we offered throughout our stores. Operating margin for the period was 11.2%, up from 9.8% last year, as leverage from the same-store sales gain and lower freight costs was partially offset by higher incentives and store wages.”

She added that Ross continues “to face macroeconomic volatility, persistent inflation and more recently, geopolitical uncertainty. In addition, we are up against our most difficult quarterly sales comparisons versus 2022 in the fourth quarter. As a result, we believe it is prudent to maintain a cautious approach in forecasting our business and are reiterating our prior sales guidance for the fourth quarter. Despite the current macroeconomic and geopolitical uncertainties, we remain confident in the resilience of the off-price sector and our ability to operate successfully within it. Our business model offers shoppers both value and convenience, and we believe consumers’ heightened focus on these important factors bodes well for us for the foreseeable future.”

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Williams-Sonoma Q3 Pressured by Promotions, Weakness in Furniture https://www.homepagenews.com/retail-articles/williams-sonoma-q3-pressured-by-promotions-weakness-in-furniture/ https://www.homepagenews.com/retail-articles/williams-sonoma-q3-pressured-by-promotions-weakness-in-furniture/#respond Fri, 17 Nov 2023 18:13:31 +0000 https://www.homepagenews.com/?p=291104 Wariness about purchasing big-ticket furniture and a promotional market environment hit Williams-Sonoma in the third quarter, according to the company. However, it still managed to beat a Wall Street earnings estimate.

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Wariness about purchasing big-ticket furniture and a promotional market environment hit Williams-Sonoma in the third quarter, according to the company. However, it still managed to beat a Wall Street earnings estimate.

The company reported that net earnings were $237.3 million, or $3.66 per diluted share, versus $251.7 million, or $3.72 per diluted share, in the year-prior period.

Williams-Sonoma topped a MarketBeat-published analyst consensus earnings estimate of $3.44 but fell short of a $1.95 billion revenue estimate.

Comparable revenue slid 14.6% for the company in the quarter year over year while comps for West Elm declined 22.4%, for Pottery Barn declined by 16.6%, for Pottery Barn Kids and Teen declined 6.9% and for Williams Sonoma declined 1.9%

Sales in the quarter were $1.85 billion versus $2.19 billion in the year-before quarter. Operating income was $315.1 million versus $339.6 million in the period a year previous.

“We are proud to deliver another quarter of strong earnings, significantly exceeding expectations, despite a challenging macroeconomic backdrop for our industry,” said Laura Alber, Williams-Sonoma president and CEO, in announcing the results. “We beat profitability estimates with a record third quarter operating margin of 17% with earnings per share of $3.66. These results were achieved in an environment filled with ongoing consumer hesitancy on high-ticket discretionary furniture spend and elevated levels of promotional activity. The strength of our operating model produced strong earnings again this quarter, driven by our full-price selling, supply chain efficiencies, and best-in-class customer service. Our early seasonal reads are strong and we are optimistic about the holiday season.”

In a conference call, Alber pointed out that Williams-Sonoma operated at meaningfully lower promotional levels in the third quarter than it had in the 2022 period, instead addressing shopper need for value by introducing a larger offering of new products at mid-tier and lower price points. The decline in furniture purchasing has had the biggest impact at West Elm, she noted, but added that the banner had a positive reception for its new fall products, marking an evolution in the brand’s modern design approach.

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