Nordstrom merely maintained full-year outlook late Tuesday after beating earnings estimates for the third quarter. JWN stock fell Wednesday.
Early Tuesday, Dick's Sporting Goods and Dollar Tree topped Q3 earnings views, with Dick's raising full-year guidance. But Dollar Tree gave a soft profit outlook for the key holiday quarter, amid cost inflation.
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Nordstrom Earnings, JWN Stock
Estimates: Analysts forecast Nordstrom earnings would tank 62% to 15 cents per share. Total revenue was seen falling 4% to $3.495 billion. Same-store sales were seen declining 4.1% vs. a 17.8% gain a year ago.
Results: Nordstrom earnings fell 49% to 20 cents a share. Revenue slipped 2.5% to $3.55 billion.
Markdowns cut into Q3 profits, the company said.
Outlook: Late Tuesday, Nordstrom reaffirmed that it remains on track to achieve full-year revenue and EPS outlook despite the Q3 beat, suggesting a challenging quarter ahead. The 2022 guidance now reflects "the impact of a third-quarter supply chain technology and related asset impairment charge," the Nordstrom earnings release said. For Q4, analysts see Nordstrom earnings rising 17% to $1.43 per share.
Shares shed 4.2% to 21.69 in massive volume Wednesday, falling further below the 200-day moving average. But JWN stock closed in the top half of the day's trading range.
Dick's Sporting Goods Earnings, DKS Stock
Estimates: Analysts polled by FactSet expected Dick's Sporting Goods earnings to plunge 29% year over year, to $2.27 per share. Revenue was expected to drop 1.7% to $2.702 billion. Same-store sales were seen falling 2.2%, vs. a 12.2% gain a year earlier.
Results: Dick's posted EPS of $2.60 per share, down 18.5% vs. a year earlier. It's the third straight EPS decline, though not as large in the prior two quarters. Sales grew 7.7% to $2.959 billion. Same-store sales jumped 6.5%, well ahead of views.
Outlook: Management raised full-year EPS guidance to $11.50-$12.10 per share, up from $10.00 to $12.00 previously. That compares to the FactSet consensus view of $11.51. The midpoint of updated full-year guidance implies Q4 EPS roughly in line with consensus.
Shares of Dick's Sporting Goods reversed nearly 1% higher Wednesday, paring early losses. They soared 10.4% to 118.15 Tuesday, surging above the 50-day moving average in massive volume.
DKS stock remains below a 118.18 buy point from a double-bottom base, MarketSmith chart analysis shows.
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Dollar Tree Earnings, DLTR Stock
Estimates: Analysts forecast Dollar Tree earnings would rebound 23% to $1.18 per share. Revenue was seen growing 7% to $6.844 billion. Same-store sales were seen rising 4.6% vs. a 1.6% gain a year ago.
Results: Dollar Tree earnings per share grew 25% to $1.20. Revenue climbed 8.1% to $6.937 billion. Same-store sales advanced 6.5%. SSS increased 6.5%. Dollar Tree store comps were up 8.6% with Family Dollar comps up 4.1%.
Outlook: Dollar Tree sees Q4 revenue of $7.54 billion to $7.63 billion, slightly above consensus. It sees full-year EPS in the lower half of its prior target for $7.10-$7.40. That implies lower Q4 EPS than the analyst target for DLTR earnings rising 6% to $2.13.
The company said Tuesday that sales trends at both Dollar Tree and Family Dollar stores continue strong, while strong consumable sales are expected to pressure margins. "Additionally, the company continues to experience inflationary cost pressures," the Dollar Tree earnings release said.
Shares gave up 1.4% Wednesday. They gapped down 7.8% to 152.37 Tuesday, below the 200-day line but rebounding from around the 50-day moving average. DLTR stock is working on a 175.78 buy point from a cup base. A weekly chart shows a cup-with-handle base with a 170.46 buy point. But that handle looks a lot messier now.
Mixed Retail Earnings
Retail earnings have been decidedly mixed in the past week, as buying patterns shift depending on the consumer and the goods being sold.
Last Tuesday, Walmart reported better-than-expected earnings and raised guidance. But Target followed up a day later with a bigger-than-expected EPS decline and warned on the holidays, saying its shoppers are downshifting further.
Last Thursday, Macy's raised its full-year earnings outlook but kept revenue guidance unchanged, after delivering an overall Q3 beat. Macy's, which also owns Bloomingdale's, tied guidance in part to a consumer "under increasing pressure" amid rapid inflation.
On Friday, Foot Locker reported much-better-than-expected results.
