{"id":61517,"date":"2022-05-25T08:58:26","date_gmt":"2022-05-25T12:58:26","guid":{"rendered":"https:\/\/www.t3live.com\/blog\/?p=61517"},"modified":"2022-05-25T09:02:21","modified_gmt":"2022-05-25T13:02:21","slug":"coffee-with-greta","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/05\/25\/coffee-with-greta\/","title":{"rendered":"Coffee With Greta: Nordstrom Bucks the Nasty Retail Trend"},"content":{"rendered":"

Editor's Note:<\/strong> Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here<\/span><\/a><\/strong>.<\/p>\n

********<\/p>\n

DJIA Futures: <\/b>-133 (-0.4%)<\/span><\/p>\n

SPX Futures: <\/b>-14 (-0.4%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-49 (-0.4%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are slipping as traders digest a fresh batch of earnings and anticipate the release of the Fed minutes.<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

Nordstrom Rallies On Upgraded Guidance<\/strong><\/h2>\n

Nordstrom <\/b>(JWN) shares are up 5.4% ahead of the open after beating Q1 sales expectations and hiking its full-year outlook.\u00a0<\/span><\/p>\n

The retailer reported an adjusted loss of $0.06 per share vs analysts\u2019 expectations for $0.05.\u00a0<\/span><\/p>\n

Nordstrom\u2019s $3.57 billion in revenue topped expectations for $3.28 billion.\u00a0<\/span><\/p>\n

Net sales at Nordstrom rose 23.5% year-over-year, surpassing pre-pandemic levels.<\/span><\/p>\n

Nordstrom Rack sales rose 10.3% and were still below 2019 levels.\u00a0<\/span><\/p>\n

CEO Erik Nordstrom said the company has been able to capitalize on higher demand from those shopping for \u201clong-awaited occasions\u201d like weddings.<\/span><\/p>\n

That higher demand prompted Nordstrom to raise its full-year outlook, bucking the recent trend of other retailers like <\/span>Target <\/b>(TGT) and <\/span>Kohl\u2019s <\/b>(KSS).<\/span><\/p>\n

The company now expects 2022 revenue growth of 6% to 8% vs previous guidance for 5% to 7% growth.\u00a0<\/span><\/p>\n

Nordstrom expects full-year adjusted earnings to range between $3.20 to $3.50 per share.\u00a0<\/span><\/p>\n

Dick\u2019s Sporting Goods Sinks After Cutting Outlook<\/strong><\/h2>\n

Dick's Sporting Goods <\/b>(DKS) shares are falling 11.2% in premarket trade despite beating Q1 expectations.\u00a0<\/span><\/p>\n

The sporting goods retailer reported adjusted earnings of $2.85 per share on $2.7 billion in revenue.\u00a0<\/span><\/p>\n

That was better than analysts\u2019 expectations for adjusted EPS of $2.48 on $2.59 billion in revenue.\u00a0<\/span><\/p>\n

But Dick\u2019s cut its full-year outlook as the company struggles with high costs and supply chain issues.\u00a0<\/span><\/p>\n

The retailer now expects adjusted full-year earnings to be between $9.15 and $11.70 per share vs the previous forecast for $11.70 to $13.10.<\/span><\/p>\n

Analysts were expecting an outlook for EPS of $12.56.<\/span><\/p>\n

Dick\u2019s forecast same-store sales will be down 2% to 8% annually vs prior expectations for a decline between 0% and 4%.<\/span><\/p>\n

Express Jumps On Upbeat Guidance<\/strong><\/h2>\n

Express <\/b>(EXPR) shares are rallying 11.3% ahead of the open after reporting a narrower Q1 loss than expected.\u00a0<\/span><\/p>\n

The clothing retailer reported an adjusted loss of $0.10 per share on $450.9 million in revenue.\u00a0<\/span><\/p>\n

That beat analysts\u2019 expectations for a loss of $0.13 on $436 million in revenue.\u00a0<\/span><\/p>\n

Same-store sales rose 31% year-over-year vs expectations for a 26.8% gain.\u00a0<\/span><\/p>\n

Express forecast same-store sales will rise in the mid-single digits in Q2.<\/span><\/p>\n

The company expects same-store sales to rise 8% to 10% for the full-year vs analysts\u2019 estimates of 8%.\u00a0<\/span><\/p>\n

Express issued full-year earnings guidance for $0.24 to $0.34 per share vs the consensus estimate for $0.12.\u00a0<\/span><\/p>\n

Intuit Rises On Strong Earnings<\/strong><\/h2>\n

Intuit <\/b>(INTU) shares are up 1.1% in premarket trade after beating fiscal Q3 expectations and hiking its full-year guidance.\u00a0<\/span><\/p>\n

The tax filing software maker reported adjusted earnings of $7.65 on $5.63 billion in revenue.\u00a0<\/span><\/p>\n

That topped analysts\u2019 expectations for adjusted EPS of $7.54 on $5.51 billion in revenue.\u00a0<\/span><\/p>\n

The CEO said, \u201cWe had another strong quarter, and we are raising Intuit\u2019s revenue and operating-income guidance for fiscal-year 2022.\u201d<\/span><\/p>\n

Intuit expects fiscal Q4 revenue to fall 8% to 9% annually due to the earlier tax filing deadline this year compared to last.<\/span><\/p>\n

The company forecast full-year revenue between $12.63 billion and $12.67 billion, up from prior guidance for $12.17 billion to $12.3 billion.\u00a0<\/span><\/p>\n

Intuit expects full-year adjusted EPS to range between $11.68 and $11.74 vs previous guidance for $11.48 to $11.64.<\/span><\/p>\n

Wendy\u2019s Rallies On Potential Takeover By Largest Shareholder<\/strong><\/h2>\n

Wendy\u2019s <\/b>(WEN) shares are rising 9.5% ahead of the open after a filing revealed its largest shareholder is exploring a potential deal with the company.\u00a0<\/span><\/p>\n

In an SEC <\/span>filing<\/span><\/a>, Trian Partners said it is seeking a deal that \u201ccan generate or enhance shareholder value.\u201d<\/span><\/p>\n

Trian owns a 19.4% stake in Wendy\u2019s.<\/span><\/p>\n

The hedge fund said, \u201cSuch a potential transaction could include an acquisition, business combination (such as a merger, consolidation, tender offer or similar transaction) or other transaction that would result in the acquisition of control of\u201d Wendy\u2019s.<\/span><\/p>\n

Trian said it has already begun discussions with the board and plans to continue those talks.\u00a0<\/span><\/p>\n

The fund holds three seats on the Wendy\u2019s board of directors.<\/span><\/p>\n

Lyft Sinks On Plan to Slow Hiring<\/strong><\/h2>\n

Lyft <\/b>(LYFT) shares are down 0.2% in premarket trade after the company announced plans to slow hiring.<\/span><\/p>\n

Lyft president John Zimmer made that announcement in a memo to staff late Tuesday.\u00a0<\/span><\/p>\n

A company spokeswoman said in a statement, \u201cWe\u2019re focused on accelerating profitable growth. We\u2019re also being responsible about costs and will significantly slow hiring.\u201d<\/span><\/p>\n

In addition to a hiring pause, Lyft is also reducing the budget of some departments and granting new stock options to some employees to make up for its plunging share price.\u00a0<\/span><\/p>\n

Rival <\/span>Uber <\/b>(UBER) shares are following LYFT in premarket trade, falling 0.3% ahead of the open.<\/span><\/p>\n

Uber previously announced its own plans to slow hiring and cut its spending on marketing, as it focuses on turning a profit.<\/span><\/p>\n

Oil Prices Rise On Tight Supply, High Demand Concerns<\/strong><\/h2>\n

Oil prices are rising on tight supply concerns as the U.S. enters its peak driving season.<\/span><\/p>\n

West Texas Intermediate crude futures are up 1.1% to $111 bbl while Brent crude futures are rising 0.9% to over $114 bbl.<\/span><\/p>\n

The American Petroleum Institute reported Tuesday that U.S. gasoline stockpiles fell by 4.2 million barrels last week.\u00a0<\/span><\/p>\n

Those stockpiles are at the seasonally lowest level since 2014.\u00a0<\/span><\/p>\n

The French foreign minister also said Tuesday was optimistic about the EU securing a deal to ban Russian oil imports.\u00a0<\/span><\/p>\n

Gas Prices Hit 16th Straight Record-High<\/strong><\/h2>\n

U.S. gas prices hit a new record high for the 16th straight day today.<\/span><\/p>\n

AAA<\/span><\/a> shows the national average for regular rose to $4.599\/gal overnight.\u00a0<\/span><\/p>\n

Diesel prices are continuing to cool, slipping to $5.544\/gal today.\u00a0<\/span><\/p>\n

The Energy Secretary said Tuesday that the President has not ruled out using export restrictions to ease high gas prices in the U.S.<\/span><\/p>\n

Bill Ackman Slams The Fed On Inflation<\/strong><\/h2>\n

Billionaire Bill Ackman believes the Fed is failing on inflation.<\/span><\/p>\n

In a tweet <\/span>thread<\/span><\/a> on Tuesday, Ackman said \u201cMarkets are imploding because investors are not confident that the @federalreserve will stop inflation.\u201d<\/span>
\n<\/span>
\n<\/span>He continued, \u201cThe only way to stop today\u2019s raging inflation is with aggressive monetary tightening or with a collapse in the economy.\u201d<\/span><\/p>\n

Ackman criticized former and current Fed officials who have made dovish remarks about inflation and a possible pause in rate hikes later this year.<\/span><\/p>\n

He seemed to call for an ultra-aggressive Paul Volcker-style rate hike.<\/span><\/p>\n

Ackman said the only way markets will stop spiraling downward is if \u201cthe Fed puts a line in the sand on inflation and says it will do \u2018whatever it takes.\u2019 And then demonstrates it is serious by immediately raising rates to neutral and committing to continue to raise rates until the inflation genie is back in the bottle.\u201d<\/span><\/p>\n

Fed Minutes On Deck<\/strong><\/h2>\n

The Fed releases the minutes of its May meeting at 2:00 p.m. ET.<\/span><\/p>\n

Traders will be focused on that report for more insight into the discussion around larger rate hikes.\u00a0<\/span><\/p>\n

The bank raised rates by 0.5% in May and Fed Chair Jerome Powell told reporters that 0.75% hikes were not under consideration.\u00a0<\/span><\/p>\n

CME Group\u2019s <\/span>FedWatch<\/span><\/a> Tool shows 93.3% of traders expect a 0.5% rate hike in June while 6.7% expect a 0.75% hike.<\/span><\/p>\n

In Case You Missed It<\/span><\/h2>\n
    \n
  • Social media stocks cratered on Tuesday following a surprise sales warning from <\/span>Snap <\/b>(SNAP). Snap shares crumbled 43.1% in the company\u2019s largest one-day drop on record after warning it will miss its own Q2 guidance. That drop dragged down other big social media stocks. <\/span>Pinterest <\/b>(PINS) plunged 23.4%, <\/span>Meta Platforms <\/b>(FB) sank 7.6%, and <\/span>Twitter <\/b>(TWTR) fell 5.2%. JMP Securities analysts said, \u201cMacro headwinds likely extend to all of digital advertising.\u201d<\/span><\/li>\n
  • U.S. business activity is expanding at the slowest pace in three months. S&P Global\u2019s flash Services PMI dropped to 53.5 this month while the Manufacturing PMI fell to 57.5. The drop came as new orders fell to the slowest pace since August 2020 and the input price index hit a record high.\u00a0<\/span><\/li>\n
  • The Census Bureau reported new home sales plunged 16.6% in April to a seasonally adjusted annual rate of 591,000 units. That was sharply lower than economists\u2019 expectations for 750,000. The median price for a new home sold last month hit a record-high at $450,600. There were 444,000 new homes for sale at the end of April, which was a 14-year high.<\/span><\/li>\n<\/ul>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    Editor’s Note: Coffee With Greta is a FREE morning update from our newest contributor Greta Wall. Want to get it by email every day? Click here. ******** DJIA Futures: -133 (-0.4%) SPX Futures: -14 (-0.4%) NASDAQ Futures: -49 (-0.4%) Good morning friends! Futures are slipping as traders digest a fresh batch of earnings and anticipate the release of the Fed minutes. Let\u2019s get right to it! Nordstrom Rallies On Upgraded Guidance Nordstrom (JWN) shares are up 5.4% ahead of the open after beating Q1 sales expectations and hiking its full-year outlook.\u00a0 The retailer reported an adjusted loss of $0.06 per share vs analysts\u2019 expectations for $0.05.\u00a0 Nordstrom\u2019s $3.57 billion in revenue topped expectations for $3.28 billion.\u00a0 Net sales at Nordstrom rose 23.5% year-over-year, surpassing pre-pandemic levels. Nordstrom Rack sales rose 10.3% and were still below 2019 levels.\u00a0 CEO Erik Nordstrom said the company has been able to capitalize on higher demand from those shopping for \u201clong-awaited occasions\u201d like weddings. That higher demand prompted Nordstrom to raise its full-year outlook, bucking the recent trend of other retailers like Target (TGT) and Kohl\u2019s (KSS). The company now expects 2022 revenue growth of 6% to 8% vs previous guidance for 5% to 7% growth.\u00a0 Nordstrom expects full-year adjusted earnings to range between $3.20 to $3.50 per share.\u00a0 Dick\u2019s Sporting Goods Sinks After Cutting Outlook Dick’s Sporting Goods (DKS) shares are falling 11.2% in premarket trade despite beating Q1 expectations.\u00a0 The sporting goods retailer reported adjusted earnings of $2.85 per share on $2.7 billion in revenue.\u00a0 That was better than analysts\u2019 expectations for adjusted EPS of $2.48 on $2.59 billion in revenue.\u00a0 But Dick\u2019s cut its full-year outlook as the company struggles with high costs and supply chain issues.\u00a0 The retailer now expects adjusted full-year earnings to be between $9.15 and $11.70 per share vs the previous forecast for $11.70 to $13.10. Analysts were expecting an outlook for EPS of $12.56. Dick\u2019s forecast same-store sales will be down 2% to 8% annually vs prior expectations for a decline between 0% and 4%. Express Jumps On Upbeat Guidance Express (EXPR) shares are rallying 11.3% ahead of the open after reporting a narrower Q1 loss than expected.\u00a0 The clothing retailer reported an adjusted loss of $0.10 per share on $450.9 million in revenue.\u00a0 That beat analysts\u2019 expectations for a loss of $0.13 on $436 million in revenue.\u00a0 Same-store sales rose 31% year-over-year vs expectations for a 26.8% gain.\u00a0 Express forecast same-store sales will rise in the mid-single digits in Q2. The company expects same-store sales to rise 8% to 10% for the full-year vs analysts\u2019 estimates of 8%.\u00a0 Express issued full-year earnings guidance for $0.24 to $0.34 per share vs the consensus estimate for $0.12.\u00a0 Intuit Rises On Strong Earnings Intuit (INTU) shares are up 1.1% in premarket trade after beating fiscal Q3 expectations and hiking its full-year guidance.\u00a0 The tax filing software maker reported adjusted earnings of $7.65 on $5.63 billion in revenue.\u00a0 That topped analysts\u2019 expectations for adjusted EPS of $7.54 on $5.51 billion in revenue.\u00a0 The CEO said, \u201cWe had another strong quarter, and we are raising Intuit\u2019s revenue and operating-income guidance for fiscal-year 2022.\u201d Intuit expects fiscal Q4 revenue to fall 8% to 9% annually due to the earlier tax filing deadline this year compared to last. The company forecast full-year revenue between $12.63 billion and $12.67 billion, up from prior guidance for $12.17 billion to $12.3 billion.\u00a0 Intuit expects full-year adjusted EPS to range between $11.68 and $11.74 vs previous guidance for $11.48 to $11.64. Wendy\u2019s Rallies On Potential Takeover By Largest Shareholder Wendy\u2019s (WEN) shares are rising 9.5% ahead of the open after a filing revealed its largest shareholder is exploring a potential deal with the company.\u00a0 In an SEC filing, Trian Partners said it is seeking a deal that \u201ccan generate or enhance shareholder value.\u201d Trian owns a 19.4% stake in Wendy\u2019s. The hedge fund said, \u201cSuch a potential transaction could include an acquisition, business combination (such as a merger, consolidation, tender offer or similar transaction) or other transaction that would result in the acquisition of control of\u201d Wendy\u2019s. Trian said it has already begun discussions with the board and plans to continue those talks.\u00a0 The fund holds three seats on the Wendy\u2019s board of directors. Lyft Sinks On Plan to Slow Hiring Lyft (LYFT) shares are down 0.2% in premarket trade after the company announced plans to slow hiring. Lyft president John Zimmer made that announcement in a memo to staff late Tuesday.\u00a0 A company spokeswoman said in a statement, \u201cWe\u2019re focused on accelerating profitable growth. We\u2019re also being responsible about costs and will significantly slow hiring.\u201d In addition to a hiring pause, Lyft is also reducing the budget of some departments and granting new stock options to some employees to make up for its plunging share price.\u00a0 Rival Uber (UBER) shares are following LYFT in premarket trade, falling 0.3% ahead of the open. Uber previously announced its own plans to slow hiring and cut its spending on marketing, as it focuses on turning a profit. Oil Prices Rise On Tight Supply, High Demand Concerns Oil prices are rising on tight supply concerns as the U.S. enters its peak driving season. West Texas Intermediate crude futures are up 1.1% to $111 bbl while Brent crude futures are rising 0.9% to over $114 bbl. The American Petroleum Institute reported Tuesday that U.S. gasoline stockpiles fell by 4.2 million barrels last week.\u00a0 Those stockpiles are at the seasonally lowest level since 2014.\u00a0 The French foreign minister also said Tuesday was optimistic about the EU securing a deal to ban Russian oil imports.\u00a0 Gas Prices Hit 16th Straight Record-High U.S. gas prices hit a new record high for the 16th straight day today. AAA shows the national average for regular rose to $4.599\/gal overnight.\u00a0 Diesel prices are continuing to cool, slipping to $5.544\/gal today.\u00a0 The Energy Secretary said Tuesday that the President has not ruled out using export restrictions to ease high gas prices in the U.S. Bill Ackman Slams<\/p>\n","protected":false},"author":41,"featured_media":61518,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-61517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=61517"}],"version-history":[{"count":5,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61517\/revisions"}],"predecessor-version":[{"id":61523,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/61517\/revisions\/61523"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/61518"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=61517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=61517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=61517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}