As we made note of in Friday’s Bespoke Report, retailers were one of the highlights last week as stocks like Target (TGT) and BJ’s Wholesale (BJ) saw some of their best reaction to earnings in their histories. Despite large gains for some retailers, Friday declines weighed heavy on the average performance of these stocks. Not a single one that reported Thursday night or Friday morning was positive in response to earnings.
Bottom line beat rates were solid as 88% of retailers that reported last week surpassed estimates. Only TJX (TJX) and Foot Locker (FL) missed on EPS. Revenues, on the other hand, were a bit weaker as less than half beat. For comparison, the rolling 3-month revenue beat rate for all stocks from our Earnings Explorer is 57.49%. Guidance also left something to be desired as only two of the ten companies giving any guidance raised forecasts. Ironically, those two that raised guidance—1-800-FLOWERS (FLWS) and Hibbett Sporting (HIBB)—both fell more than 10% on their reaction days!
This week, retail continues to dominate the earnings calendar with 24 retail stocks reporting second-quarter results. Some notables include luxury retailer Tiffany & Co (TIF) and, on the other end of the spectrum, dollar stores like Dollar General (DG) and Dollar Tree (DLTR). Two-thirds of the stocks reporting this week have averaged a full day gain in response to earnings. Some of the most volatile of these in either direction are Barnes & Noble Education (BNED), J. Jill (JILL), and At Home (HOME) which have averaged absolute moves of over 14%. Bespoke Institutional members can view these stocks’ earnings history and stock reaction in response using our Earnings Explorer tool.