Eighty percent of companies in our Retail/Restaurant Index have reported Q3 2019 EPS. Of the 166 companies in the index that have reported earnings to date, 69% have reported earnings above analyst expectations, 7% reported earnings in line with analyst expectations and 24% reported earnings below analyst expectations. The Q3 2019 blended earnings growth estimate is 3.9%.
The Q3 2019 blended revenue growth estimate is 5.6%. Fifty-four percent have reported revenue above analyst expectations, and 46% reported revenue below analyst expectations.
Exhibit 1: Refinitiv Earnings Dashboard
Source: I/B/E/S data from Refinitiv
Retail Earnings This Week
Macy’s beat its Q3 earnings estimate but missed on revenue and SSS. The retailer said sales were hurt by a warmer fall season, soft international tourist sales, weaker than expected performance at lower-tier malls, and temporary e-commerce upgrade. Meanwhile, Target benefited from weather-sensitive categories as cooler weather spread and saw a 31% increase in online sales. Likewise, Ross Stores sales received a boost from higher traffic and an increase in the size of the average basket. On the flip side, Gap Inc. missed expectations and said it was not pleased with third-quarter results and is “aggressively addressing the operational issues that are hindering the performance” of their brands (Source: Gap Q3 Release, 11/21/19).
Here are the same-store sales and earnings estimates for retailers reporting earnings this week:
Exhibit 2: Same-Store Sales and Earnings Estimates/Results – Week Of Nov 18, 2019
Source: I/B/E/S data from Refinitiv
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