Markets

Ralph Lauren tops estimates as margins improve

Ralph Lauren on Wednesday reported a higher-than-expected quarterly profit, as the luxury apparel maker’s move to pull products off department store shelves and sell more products at full-price boosted margins. The company’s shares rose 3 percent in premarket trading. Ralph Lauren said adjusted gross margin was 59.8 percent in the fourth quarter, a 440 basis point rise from a year earlier. The New York-based company reported net income of $41.3 million, or 50 cents per share, in the quarter ended March 31, compared with a loss of $204 million, or $2.48 per share, a year earlier. The company incurred $322 million in restructuring charges in the year-ago quarter. Ralph Lauren said same-store sales on constant currency basis fell 1 percent, but less than the 2.3 percent fall expec...

Stocks making the biggest moves premarket: LOW, TGT, TIF, INTU, HPE, RRGB & more

Check out the companies making headlines before the bell: Lowe’s – The home improvement retailer missed estimates by 3 cents a share, with quarterly earnings of $1.19 per share. Revenue missed forecasts, as well, and same-store sales were up 0.6 percent compared to the consensus Thomson Reuters estimate of a 3.1 percent increase. Lowe’s said bad weather impacted sales for much of the quarter but that it is encouraged by strong sales so far this month. Target – Target reported adjusted quarterly profit of $1.32 per share, missing estimates by 7 cents a share. Revenue was slightly below forecasts and a comparable-store sales increase of 3 percent was just above the 2.9 percent consensus forecast. Target also mentioned weather as a factor which delayed some sales. Tiffany – The lu...

Tiffany’s quarterly earnings trounce estimates, sending shares soaring

Tiffany’s first-quarter results beat analysts’ estimates on Wednesday, with strong sales of its high-end jewelry in the Americas and Asia-Pacific regions helping the company raise its annual sales and profit forecasts. Tiffany’s shares rose nearly 14 percent to a record high of $116.76 before the bell. The stock has gained 6.3 percent so far this year, outperforming the broader S&P 500 consumer discretionary index. The New York-based upscale jeweler is benefiting from its turnaround plan that was put in place to stem price-conscious millennial shoppers from drifting to stores and websites of newer players such as Denmark’s Pandora A/S and online jeweler Blue Nile. The plan included selling cheaper-priced items to millennials as well as everyday home items such a...

Target earnings are coming before the bell — here’s what the Street expects

Target is expected to report first-quarter earnings before the bell on Wednesday. Here’s what Wall Street expects: Earnings: $1.39 per share, according to Thomson Reuters Revenue: $16.58 billion, according to Thomson Reuters The Minneapolis-based retailer has been forging ahead with a plan to reinvest more than $7 billion back into the company through 2020. The money is largely being spent on opening smaller-format stores, redesigning existing locations, rolling out more private-label brands, and upgrading Target’s mobile app, Cartwheel. Target’s remodeled stores are beginning to feature more fresh food, produce, and prepared options for shoppers in a hurry. The retailer has also been focusing on fulfillment and boosting its delivery service. As part of these efforts, it ...

Lowe’s same-store sales miss estimates

U.S. home improvement retailer Lowe’s missed analysts’ forecasts for quarterly same-store sales on Wednesday as an uncharacteristically long winter hit demand. Sales at Lowe’s stores open at least a year rose 0.6 percent in the first quarter ended May 4, while analysts on average had expected a 3.06 percent increase, according to Thomson Reuters I/B/E/S. On Tuesday, the company said current J.C. Penney CEO Marvin Ellison would be taking over at Lowe’s, replacing longtime Chief Executive Officer Robert Niblock.

Spiking AutoZone shares roll completely over and tank on cost concerns raised on earnings call

AutoZone shares dropped more than 7 percent on Tuesday, erasing a sharp gain from earlier in the day, after worries of rising costs for the company were raised during its quarterly earnings call. During the call, CEO William Rhodes said he expects selling, general and administrative expenses to rise between 6.5 and 7.5 percent for fiscal year 2019 as the company raises wages. Those comments “would seem to [indicate] concerns about labor inflation and possible peak margin,” Jefferies analyst Bret Jordan told CNBC in an email. AutoZone’s Rhodes noted the changes to the company’s wages were designed to “attract and retain terrific knowledgeable AutoZoners and to make sure our wages are competitive.” Before the call, AutoZone’s stock popped as much as ...

Guest Contribution: “Exchange rate forecasting on a napkin”

Today we are fortunate to present a guest post written by Michele Ca’ Zorzi (ECB) and Michal Rubaszek (SGH Warsaw School of Economics). The views expressed are those of the authors and do not necessarily reflect those of the ECB. We have just released a new ECB Working Paper entitled “Exchange rate forecasting on a napkin”. The title highlights our desire to go back to basics on the topic of exchange rate forecasting, after a work-intensive attempt to beat the random walk (RW) with sophisticated structural models (“Exchange rate forecasting with DSGE models,”). Cheung et al. (2017) have recently reaffirmed the difficulties of finding models that consistently outperform the RW; however they also concluded that the Purchasing Power Parity (PPP) model performs fairly well. The starting point ...

Bargain-hungry customers help TJX beat sales estimates

TJX reported better-than-expected quarterly same-store sales on Tuesday, as deep discounts brought more bargain hunters into its T.J. Maxx and Marshalls apparel stores. Online shopping has taken a toll on traditional brick-and-mortar stores but TJX, unlike other retailers, has not seen huge cuts in inventory and store closures. TJX does not advertise brands. It instead encourages shoppers to go on a “treasure hunt” through aisles to find deals on products or brands that would otherwise be out of reach. The company sometimes offers coats and apparel from high-end brands like Michael Kors and Versace at half the price of other retailers. “The treasure hunt nature continues to drive new interest, new people and more visits by current customers”, said Brian Yarbrough, a...

NYSE’s new president takes on challenges as exchanges compete for IPOs, fees

The elevation of Stacey Cunningham to president of the NYSE Group represents a full circle for one of the few women who have worked on the exchange floor. Cunningham is well-known to traders. She started her career on the floor in 1994 as an intern with specialist firm Murphey, Marseilles, Smith & Nammack, but started full-time in 1996 for JJC Specialist, which was a division of Quick & Reilly. She became COO in 2015, not long after Intercontinental Exchange acquired the Big Board. Since then, she has played a crucial role in modernizing NYSE’s trading operations, including the roll-out of Pillar, an integrated trading platform that connects all the NYSE’s markets. While there have been some glitches and delays in the roll-out, it has been the most ambitious technology ...

Stocks making the biggest moves premarket: KSS, AAP, AZO, GM, F, FCAU, MU & more

Check out the companies making headlines before the bell: Kohl’s – The retailer beat Street forecasts by 14 cents a share, with adjusted quarterly profit of 64 cents per share. Revenue beat estimates, as well. Comparable-store sales were up 3.6 percent, better than the Thomson Reuters consensus estimate of a 2.7 percent gain. Kohl’s also raised its full-year earnings forecast. Advance Auto Parts – The auto parts retailer reported adjusted quarterly profit of $2.10 per share, beating the $1.97 a share consensus estimate. Revenue was slightly short of forecasts and comparable-store sales fell 0.8 percent, but profit margins were improved compared to a year ago. AutoZone – AutoZone earned $13.42 per share for its latest quarter, above the Street consensus of $12.94 a share. The au...

Kohl’s shares give up gains as promotions boosted sales, but may steal from second half

Kohl’s stock turned negative Tuesday after investors learned the timing of a promotional event helped boost sales in the latest quarter, but could steal momentum from the second half of the year. The retailer reported same-store sales growth of 3.6 percent for the first quarter, beating expectations of 2.7 percent. First-quarter earnings also topped expectations, helped by tighter controls on the goods it sells in its stores. On a call with analysts, Chief Financial Officer Bruce Besanko said the increase was driven by higher average transaction values, while the number of transactions was relatively flat for the quarter. Kohl’s friends and family event before Mother’s Day also helped boost comparable sales, Besanko said. The event also will help the second quarter, but c...

Kohl’s shares surge on earnings beat, efforts to lure in shoppers are boosting sales

Kohl’s on Tuesday reported first-quarter earnings that beat expectations on the top and bottom lines, boosted by its focus on driving foot traffic and more tightly controlling the goods it sells in its stores. “We are very pleased with our strong start to fiscal 2018 as we continued to focus on our priorities of driving traffic and operational excellence,” said Michelle Gass, Kohl’s incoming CEO. Shares of Kohl’s were up more than 5 percent in premarket trading. Here’s how the company did compared with what Wall Street expected: Earnings: 64 cents per share vs. 50 cents per share forecast by Thomson Reuters Revenue: $4.21 billion vs. $3.95 billion forecast by Thomson Reuters Same-store sales growth: 3.6 percent vs. 2.7 percent forecast by Thomson Reuters...