Canaccord Genuity on SPDR Retail ETF (XRT): Bargain Hunters
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Price: $89.10 +1.50%
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Today's Overall Ratings:
Up: 11 | Down: 26 | New: 83
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 26 | New: 83
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Canaccord Genuity on SPDR Retail ETF (NYSE: XRT): Bargain hunters.
While December retail sales were slightly better than expected (3.4% increase versus 3.3% consensus), many retailers were forced to offer heavy discounting in the month, forcing several to drop their quarterly profit estimates. J.C. Penney (NYSE: JCP) saw sales increase by 0.3% while analysts were expecting a 0.1% decline, but cut its Q4 EPS guidance to range $0.65-0.70 from its November guidance of $1.05-1.15. Rival Target (NYSE: TGT) also cut its guidance for the company quarter after a poor showing in December. Management cited weakness in electronics, music, movies and books as the cause of the slow sales. Kohl’s (NYSE: KSS) also cut its Q4 earnings guidance citing sluggish sales in cold weather wear due to the warm winter weather. Gap (NYSE: GPS) continued to slide, seeing sales drop 4% in the month. CEO Glenn Murphy commented “We expected December to be highly promotional, and while we competed aggressively across our brands our performance was below our expectations.” That said, the company did not cut its guidance, with Murphy saying he was “encouraged by bright spots across our business.” While larger department stores struggled, luxury retailers continued to perform. Nordstrom (NYSE: JWN) and Saks (NYSE: SKS) both managed to meet or beat expectations. In the teen retail space, Zumiez (Nasdaq: ZUMZ) and Hot Topic (Nasdaq: HOTT) both topped their prior sales forecasts and raised guidance while American Eagle Outfitters (NYSE: AEO) slashed earnings guidance due to a highly promotional December.
While December retail sales were slightly better than expected (3.4% increase versus 3.3% consensus), many retailers were forced to offer heavy discounting in the month, forcing several to drop their quarterly profit estimates. J.C. Penney (NYSE: JCP) saw sales increase by 0.3% while analysts were expecting a 0.1% decline, but cut its Q4 EPS guidance to range $0.65-0.70 from its November guidance of $1.05-1.15. Rival Target (NYSE: TGT) also cut its guidance for the company quarter after a poor showing in December. Management cited weakness in electronics, music, movies and books as the cause of the slow sales. Kohl’s (NYSE: KSS) also cut its Q4 earnings guidance citing sluggish sales in cold weather wear due to the warm winter weather. Gap (NYSE: GPS) continued to slide, seeing sales drop 4% in the month. CEO Glenn Murphy commented “We expected December to be highly promotional, and while we competed aggressively across our brands our performance was below our expectations.” That said, the company did not cut its guidance, with Murphy saying he was “encouraged by bright spots across our business.” While larger department stores struggled, luxury retailers continued to perform. Nordstrom (NYSE: JWN) and Saks (NYSE: SKS) both managed to meet or beat expectations. In the teen retail space, Zumiez (Nasdaq: ZUMZ) and Hot Topic (Nasdaq: HOTT) both topped their prior sales forecasts and raised guidance while American Eagle Outfitters (NYSE: AEO) slashed earnings guidance due to a highly promotional December.
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