Company Performance - Target's stock closed at $103.65, reflecting a gain of +2.28% from the previous session, outperforming the S&P 500's gain of 0.54% [1] - Prior to the recent trading day, Target shares had increased by 6.54%, surpassing the Retail-Wholesale sector's gain of 2.05% and the S&P 500's gain of 4.2% [1] Earnings Forecast - Target is projected to report earnings of $2.08 per share, indicating a year-over-year decline of 19.07% [2] - The consensus estimate for revenue is $24.88 billion, representing a 2.26% decrease compared to the same quarter of the previous year [2] - For the full year, earnings are estimated at $7.55 per share and revenue at $104.65 billion, reflecting changes of -14.79% and -1.79% from the prior year, respectively [3] Analyst Estimates and Valuation - Recent adjustments to analyst estimates for Target are crucial as they reflect short-term business trends [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Target at 4 (Sell), with a historical average annual gain of +25% for 1 ranked stocks since 1988 [6] - Target's Forward P/E ratio is 13.42, which is lower than the industry average of 21.41, suggesting that Target is trading at a discount [7] Industry Context - Target has a PEG ratio of 2.9, compared to the Retail - Discount Stores industry's average PEG ratio of 2.76 [8] - The Retail - Discount Stores industry is ranked 166 in the Zacks Industry Rank, placing it in the bottom 33% of over 250 industries [9]

Company Performance - Ross Stores (ROST) closed at $127.59, reflecting a -2.73% change from the previous day, underperforming the S&P 500's 0.4% loss [1] - In the past month, shares of Ross Stores gained 0.02%, while the Retail-Wholesale sector and the S&P 500 gained 4.14% and 4.97%, respectively [1] Earnings Projections - The upcoming EPS for Ross Stores is projected at $1.54, indicating a 3.14% decline compared to the same quarter last year [2] - Revenue is estimated at $5.53 billion, representing a 4.68% increase from the prior-year quarter [2] Annual Estimates - For the annual period, earnings are anticipated at $6.23 per share and revenue at $21.99 billion, reflecting shifts of -1.42% and +4.07% from the previous year [3] - Recent adjustments to analyst estimates are crucial as they indicate short-term business trends [3] Valuation Metrics - Ross Stores has a Forward P/E ratio of 21.04, which is lower than the industry average of 21.39, suggesting it is trading at a discount [6] - The PEG ratio for Ross Stores is 2.51, compared to the industry average of 2.81, indicating a relatively favorable valuation in terms of growth expectations [7] Industry Ranking - The Retail - Discount Stores industry has a Zacks Industry Rank of 155, placing it within the bottom 38% of over 250 industries [7] - The strength of industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Company Performance - Target's stock closed at $104.74, reflecting a +2.26% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.28% [1] - The stock has increased by 4.4% over the past month, leading the Retail-Wholesale sector's gain of 0.87% and the S&P 500's gain of 4.37% [1] Earnings Forecast - Target is expected to report an EPS of $2.08, indicating a 19.07% decrease from the same quarter last year, with a projected quarterly revenue of $24.88 billion, down 2.26% year-over-year [2] - Full-year estimates predict earnings of $7.55 per share and revenue of $104.65 billion, representing year-over-year declines of -14.79% and -1.79%, respectively [3] Analyst Estimates and Rankings - Recent changes in analyst estimates are crucial for investors, as they reflect the evolving business landscape, with positive revisions indicating confidence in performance [3][4] - Target currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having increased by 0.57% over the last 30 days [5] Valuation Metrics - Target's Forward P/E ratio stands at 13.57, which is a discount compared to the industry average of 20.89 [6] - The PEG ratio for Target is 2.93, compared to the Retail - Discount Stores industry's average PEG ratio of 2.76 [6] Industry Context - The Retail - Discount Stores industry is part of the Retail-Wholesale sector and has a Zacks Industry Rank of 90, placing it in the top 37% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - Costco reported net sales of $26.44 billion for June, reflecting an 8% year-over-year increase [1] - Comparable sales for the company increased by 5.8% during the same period [1] - Year-to-date net sales reached $227.46 billion, also up 8% year-over-year [1] - The company operates a total of 907 warehouses, with 624 located in the U.S. [1] Sales Performance - U.S. comparable sales increased by 4.7% [4] - Canadian comparable sales rose by 6.7% [4] - Other international markets saw a 10.9% increase in comparable sales [4] Stock Performance - Costco shares have risen approximately 7.15% year-to-date [2] - In after-hours trading, the stock was up 1.11%, priced at $982.09 [2]

Core Insights - Target Corporation (TGT) has seen a significant decline in its stock price, dropping 28.1% over the past six months, underperforming the Zacks Retail - Discount Stores industry's growth of 3.2% [1][3] - The company has lowered its fiscal 2025 guidance due to softer consumer demand, lower spending per visit, and declining store traffic [3][9] - Target's adjusted earnings per share (EPS) for the fiscal first quarter fell to $1.30 from $2.03 year-over-year, with total sales decreasing by 2.8% to $23.85 billion [13][14] Performance Overview - TGT's stock is currently trading at $98.65, which is 41.1% below its 52-week high of $167.40 [7] - The stock is trading below its 100 and 200-day simple moving averages, indicating bearish sentiment [7] - Comparable store sales fell by 5.7%, and overall traffic declined by 2.4% in the fiscal first quarter [9][17] Margin and Cost Pressures - Gross margin decreased by 60 basis points to 28.2% due to increased markdown activity and rising costs associated with digital fulfillment and supply-chain operations [18] - Operational costs have risen sharply, impacting adjusted EPS by approximately 50 cents year-over-year [19][20] Peer Comparison - Target has underperformed its peers, with Dollar General, Dollar Tree, and Costco experiencing stock price increases of 51.2%, 29.5%, and 8.8%, respectively [4][15] - TGT's forward 12-month price-to-earnings (P/E) ratio is 12.75, significantly lower than the industry's average of 32.30 [10][15] Strategic Initiatives - Target is focusing on expanding its e-commerce capabilities and enhancing customer loyalty through its membership program, Target Circle 360 [23][25] - The company aims to increase its third-party marketplace, Target Plus, targeting $5 billion in Gross Merchandise Value (GMV) by 2030 [24] - Target is diversifying its sourcing strategy, reducing dependency on China from 60% in 2017 to under 30% in the fiscal first quarter, with a goal of below 25% by 2026 [27][28]

Core Insights - Abercrombie & Fitch Co. (ANF) experienced an 11% drop in shares after releasing its first-quarter fiscal 2025 results, underperforming compared to the Zacks Retail - Discount Stores industry and the broader S&P 500 [1][3] Financial Performance - The company reported an earnings per share (EPS) of $1.59, exceeding the Zacks Consensus Estimate of $1.35, and achieved record sales of $1.1 billion, reflecting an 8% year-over-year increase [3][5] - Despite strong revenue growth, EPS declined by 25.7% compared to $2.14 in the same quarter last year, and gross margin contracted by 440 basis points to 62% due to inflationary pressures and higher selling expenses [5][10] Brand Performance - The Hollister brand showed robust growth with a 22% increase in sales and 23% comparable sales gains, while the Abercrombie brand faced a 4% decline in sales and a 10% drop in comparable sales [6][9] - The Abercrombie brand's underperformance is concerning as it constitutes nearly 50% of the company's total sales, posing a strategic risk [9][12] Guidance and Market Sentiment - Management raised sales growth expectations for fiscal 2025 to 3-6% but lowered EPS guidance to $9.50-$10.50 from $10.40-$11.40, indicating potential profitability challenges in the second half of the fiscal year [10][19] - The Zacks Consensus Estimate for EPS has seen downward revisions, with a 6.2% decline to $10.28 for fiscal 2025 over the past 30 days [17][19] Strategic Initiatives - The company is focusing on long-term growth through brand evolution, international expansion, and enhancing omni-channel capabilities, including plans to open 60 new stores and remodel 40 in fiscal 2025 [11][12] - Abercrombie's brand portfolio revitalization, particularly the success of Hollister, is a key strength, with eight consecutive quarters of growth [12][18] Valuation - ANF is currently trading at a forward 12-month P/E ratio of 7.57X, significantly below the industry average of 17.85X and the S&P 500's average of 22.02X, indicating a potential buying opportunity despite investor concerns [13][16]

Key Takeaways DLTR shares rose after Q1 earnings and revenues exceeded expectations with strong same-store sales Store conversions to the multi-price format helped drive sales growth and improved customer metrics. DLTR reaffirmed its full-year sales outlook, supported by solid execution and strategic transformation.Dollar Tree, Inc. (DLTR) saw its shares rise 6.3% following the release of its first-quarter fiscal 2025 results on June 4. This performance outperformed the Zacks Retail - Discount Stores indu ...

For those looking to find strong Retail-Wholesale stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Dollar General (DG) been one of those stocks this year? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.Dollar General is one of 209 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #9 within the Zacks Sector Rank. The Zacks ...

Core Insights - Costco Wholesale Corporation (COST) demonstrated strong comparable sales growth in May, appealing to value-focused consumers in an inflationary environment [1][5] Sales Performance - For the four weeks ending June 1, 2025, Costco reported a 4.3% year-over-year increase in total comparable sales, with U.S. sales up 4.1%, Canada up 3.3%, and Other International markets up 6.6% [2] - Adjusted comparable sales, excluding gasoline price fluctuations and foreign exchange impacts, showed U.S. comps climbing 5.5%, Canada up 6.3%, and Other International markets up 8.4%, leading to an overall growth of 6% [3] - E-commerce sales surged 11.6%, or 12% when adjusted for fuel and currency, continuing the trend of strong online performance [4] Financial Highlights - Costco's net sales for May increased by 6.8% to $20.97 billion, compared to $19.64 billion in the same period last year, following sales improvements of 7% in April and 8.6% in March [4][7] Business Model Strength - The company's membership-based structure, high renewal rates, efficient supply-chain management, and bulk purchasing power are key drivers of growth and customer loyalty [5]

Core Insights - The TJX Companies, Inc. (TJX) experienced a 5% drop in shares following the release of its first-quarter fiscal 2026 results, underperforming compared to the Zacks Retail - Discount Stores industry, which declined 1%, and the broader S&P 500, which increased by 0.2% [1][7]. Financial Performance - TJX reported net sales of $13,111 million for the first quarter, reflecting a 5% year-over-year increase, with consolidated comparable store sales rising by 3% [5][10]. - Earnings per share (EPS) for the quarter were 92 cents, a slight decrease from 93 cents in the same quarter last year [5][7]. - The company reaffirmed its fiscal year 2026 outlook, projecting comparable store sales growth of 2% to 3% and EPS between $4.34 and $4.43, indicating a 2% to 4% increase from the previous year's EPS of $4.26 [10][24]. Segment Performance - Comparable store sales growth was reported as follows: 2% at Marmaxx (U.S.), 4% at HomeGoods (U.S.), and 5% at both TJX Canada and TJX International (Europe and Australia) [8][10]. Strategic Outlook - Management expressed confidence in the company's ability to attract value-conscious shoppers despite macroeconomic challenges, emphasizing the strength of its off-price retail model and broad product assortments [9][11]. - TJX added 36 new stores in the first quarter, bringing the total to 5,121 locations, and is focusing on enhancing its e-commerce capabilities [13]. Valuation and Market Position - TJX is currently trading at a forward P/E ratio of 27.75X, which is lower than the industry average of 34.17X, making it attractive for value-focused investors [14]. - The stock is trading above its 50-day and 200-day moving averages, indicating growing market confidence in its growth potential [16]. Challenges and Risks - The company faces rising operating costs due to inflation and wage increases, which may pressure margins [17]. - Tariff-related pressures and foreign exchange fluctuations are anticipated to impact profitability, with management projecting a gross margin decline of 40 basis points year-over-year [18][19]. - Recent downward revisions in earnings estimates reflect cautious sentiment among investors, with the consensus estimate for EPS declining to $1.00 for the current quarter and $4.46 for the fiscal year [20][24].