3 Companies To Watch That Report Quarterly Earnings Tomorrow (September 8, 2016)

Restoration Hardware (RH): Restoration Hardware and high end brands have struggled recently due to a shift in consumer preferences towards value channels. This shift has been apparent especially with Restoration Hardware’s results which have steadily declined. The company has delivered negative bottom line growth for 3 consecutive quarters, coupled with decelerating revenue growth. Weak results from William Sonoma a few weeks ago does not likely bode well for Restoration Hardware. This is just one of many pieces of unfortunate news shareholders have received. Full year projections were recently cut by more than $1 per share with Q2 expectations cut nearly in half. Unsurprisingly, the stock has struggled year-to-date and in the past 12 months but the smallest surprise could reconcile some of those losses.

Barnes and Noble (BKS): Barnes and Noble was Amazon’s first of many victims during its historic rise. The bookseller is now considered by many to be a showroom for online retailers and ebooks. The advent of ebooks has played a huge role in the demise and recent bounceback that Barnes and Noble has witnessed. Ebooks, unlike a physical book, carry less overhead costs and aren’t subject to excess inventory. Shares are up nearly 46% year to date and could breakout even further if the company is able to turn a profit to kick off its fiscal 2017.

Zumiez (ZUMZ): The clothing retailer has delivered weak growth amidst increasing competition from online retailers, a shift toward fast fashion trends and slow mall traffic. Consequently comparable store sales have come in negative for 16 straight months. More recently the company’s first quarter printed a loss for the first time in over 2 years and is expected to do so in its upcoming report. Shares are down 28% in the past 12 months and historically drop 6% immediately following an earnings report.

Disclosure: None.

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