Costco Hits High Ahead Of Earnings As Retailers Rock

Costco (COST) prepares to report earnings on Thursday for its fiscal second quarter. Costco stock set a new high on Wednesday ahead of the report, after a blistering rally.

Among other retail stocks, Abercrombie & Fitch (ANF) guided high Wednesday after beating lofty expectations for the fourth quarter. On Tuesday, Ross Stores (ROST) gave cautious guidance after easily beating earnings and revenue estimates for the holiday quarter.




X



Elsewhere in the retail space, Dick’s Sporting Goods (DKS) follows next week.

Along with Costco, Dick’s Sporting Goods stock set a new high Wednesday. Abercrombie stock snagged a new high Tuesday. Led by Abercrombie, these four retailers ripped higher over the past 12 months.

Investors will watch guidance closely as they report. Target (TGT) reported strong Q4 earnings early Tuesday but gave weak Q1 guidance. Target stock still soared 12%.

Costco Earnings, Dick’s Sporting Goods

Estimates: Analysts expect Costco to earn $3.62 per share on revenue of $59.11 billion. Year over year, Costco earnings are seen growing nearly 10% as sales rise 7%.

Results: Check back Thursday after the market close.

On Wednesday, Costco gained 1.8%, near 773. Costco stock set a 52-week high, after leaping 60% in the past year. Shares are far extended from a September 2023 flat-base breakout.

Dick’s Sporting Goods is on deck March 14 before the market opens.

Dick’s stock fell 0.2%, near 181. Shares jumped 40% in the past year. The retail stock is well extended from its January breakout past 152.61.

Retail Stocks: Abercrombie & Fitch Earnings

Estimates: Wall Street expected Abercrombie & Fitch to deliver earnings of $2.83 per share on revenue of $1.429 billion for the holiday quarter. Year over year, earnings were seen surging nearly 250%, with sales up 19%. The retail is lapping a 29% earnings decline in the year-ago quarter.

Results: Early Wednesday, Abercrombie posted EPS of $2.97, a 267% increase and above views. Revenue grew 21% to $1.453 billion.

Outlook: The teen-friendly apparel retailer guided expectations for fiscal 2024 sales growth of 4%-6%, up from $4.3 billion in 2023.

Analysts were expecting 3.4% revenue growth in fiscal 2024, FactSet shows. Abercombie’s fiscal year ends in January.

Abercrombie stock fell 3.6% near 135 on Wednesday, snapping a string of five up days. Shares of the once-bankrupt retailer set a 52-week high Tuesday.

The retail stock remains above all the short-term and long-term moving averages after soaring 383% in the past year.

The red-hot retail stock is way extended from its prior breakout last June, the MarketSurge pattern recognition shows.

“Abercrombie & Fitch’s ability to persuade middle-aged shoppers to retread the choices of their youth helped its shares quadruple last year, to an all-time high,” the Financial Times said in January, also noting “sharp efficiency gains.”

Ross Stores Earnings

Estimates: Analysts expected Ross Stores to earn $1.66 per share on revenue of $5.812 billion, according to FactSet. Year over year, earnings were seen jumping almost 27% as sales grow 12%.

Results: Late Tuesday, Ross Store earnings came in at $1.82 per share, easily beating estimates. Sales jumped 15.5% to $6 billion, also above views. That marks the fifth straight quarter of quickening sales growth for the discount retailer.

The sales results saw a $308 million benefit from an extra week vs. a year ago, Ross Stores said.

Margins improved during the quarter, with the company citing “strong gains in same store sales and lower freight costs that were partially offset by higher incentives.”

Outlook: The retailer guided Q1 EPS of $1.29-$1.35 and full-year 2024 EPS of $5.64-$5.89. Analysts, on average, were expecting Q1 EPS of $1.26 and 2024 EPS of $5.90.

The guidance reflects “ongoing uncertainty in the macroeconomic and geopolitical environments,” the Ross Stores earnings release said.

The company authorized a new two-year stock repurchase program and raised the quarterly dividend.




X



Ross Stores stock edged down 0.1% near 148 on the stock market today. Shares pegged a 52-week high Feb. 29, ahead of the earnings report.

Ross stock is far extended from a November 2023 flat-base breakout.

YOU MAY ALSO LIKE:

These Are The 5 Best Stocks To Buy And Watch Now

Stocks To Watch: Top-Rated IPOs, Big Caps And Growth Stocks

Find The Latest Stocks Hitting Buy Zones With MarketSmith

Source link

Leave a Comment