{"id":65079,"date":"2022-11-16T09:02:47","date_gmt":"2022-11-16T14:02:47","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=65079"},"modified":"2022-11-16T09:02:47","modified_gmt":"2022-11-16T14:02:47","slug":"coffee-with-greta-retail-sales-beat-target-flops","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2022\/11\/16\/coffee-with-greta-retail-sales-beat-target-flops\/","title":{"rendered":"Coffee With Greta: Retail Sales Beat, Target Flops"},"content":{"rendered":"

DJIA Futures: <\/b>-29 (-0.1%)<\/span><\/p>\n

SPX Futures: <\/b>-6 (-0.1%)<\/span><\/p>\n

NASDAQ Futures: <\/b>-21 (-0.2%)<\/span><\/p>\n

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

Futures are lower as traders digest strong retail sales data against Target\u2019s big earnings miss.\u00a0<\/span><\/p>\n

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

October Retail Sales Jump<\/span><\/h2>\n

Retail sales rose more than expected in October as the U.S. consumer continues to pay higher prices.\u00a0<\/span><\/p>\n

The Commerce Department reported retail sales rose 1.3% to $694.5 billion.\u00a0<\/span><\/p>\n

That was better than economists\u2019 expectations for a 1.2% gain.\u00a0<\/span><\/p>\n

Retail sales jumped 8.3% year over year.\u00a0<\/span><\/p>\n

Gasoline stations saw the largest increase with sales up 4.1% as prices rose, grocery store sales jumped 1.4%, and vehicles sales were up 1.5%.\u00a0<\/span><\/p>\n

Core retail sales, excluding vehicles and gas stations, rose 0.9%.\u00a0<\/span><\/p>\n

Target Tumbles As Profits Drop<\/span><\/h2>\n

Target <\/b>(TGT) shares are tumbling 15.1% ahead of the open after missing Q3 expectations and warning of a weak holiday quarter.<\/span><\/p>\n

Here\u2019s how the retailer\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n

    \n
  • EPS: $1.54 vs $2.13 expected<\/span><\/li>\n
  • Revenue: $26.52 billion vs $26.38 billion expected<\/span><\/li>\n<\/ul>\n

    Profit was down about 50% year over year as the company cleared excess inventory.\u00a0<\/span><\/p>\n

    Inventory was up 14% compared to Q3 2021 vs 36% in Q2 and 43% in Q1.<\/span><\/p>\n

    Target said it plans to cut up to $3 billion in total costs over the next three years.\u00a0<\/span><\/p>\n

    The company said it is planning for a weaker Q4, forecasting a low single-digit decline in comparable sales and operating margins around 3%.\u00a0<\/span><\/p>\n

    Lowe\u2019s Beats Q3 Expectations<\/span><\/h2>\n

    Lowe\u2019s <\/b>(LOW) shares are up 1.5% in premarket trade after beating Q3 estimates.\u00a0<\/span><\/p>\n

    Here\u2019s how the home improvement retailer\u2019s results compared to analysts\u2019 expectations:<\/span><\/p>\n

      \n
    • EPS: $3.27 vs $3.10 expected<\/span><\/li>\n
    • Revenue: $23.48 billion vs $23.13 billion expected<\/span><\/li>\n<\/ul>\n

      Lowe\u2019s reported 19% growth in its professional segment while online sales rose 12%.\u00a0<\/span><\/p>\n

      But the company did update its full-year guidance, lowering the top end of its revenue forecast to between $97 billion and $98 billion vs $99 billion previously.\u00a0<\/span><\/p>\n

      Lowe\u2019s also expects comparable sales to be flat or down 1% vs the prior outlook for down 1% to up 1%.<\/span><\/p>\n

      Homebuilder Sentiment Expected to Slide Further<\/span><\/h2>\n

      The National Association of Homebuilders releases its November sentiment index at 10:00 a.m. ET today.\u00a0<\/span><\/p>\n

      That index is expected to have fallen 2 points this month to 36.\u00a0<\/span><\/p>\n

      That extends a steep decline seen in recent months as mortgage rates have surged.\u00a0<\/span><\/p>\n

      Homebuilders have cited higher rates and continued labor and supply chain shortages for their decreased confidence.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

      DJIA Futures: -29 (-0.1%) SPX Futures: -6 (-0.1%) NASDAQ Futures: -21 (-0.2%) Good morning friends! Futures are lower as traders digest strong retail sales data against Target\u2019s big earnings miss.\u00a0 Let\u2019s get right to it! October Retail Sales Jump Retail sales rose more than expected in October as the U.S. consumer continues to pay higher prices.\u00a0 The Commerce Department reported retail sales rose 1.3% to $694.5 billion.\u00a0 That was better than economists\u2019 expectations for a 1.2% gain.\u00a0 Retail sales jumped 8.3% year over year.\u00a0 Gasoline stations saw the largest increase with sales up 4.1% as prices rose, grocery store sales jumped 1.4%, and vehicles sales were up 1.5%.\u00a0 Core retail sales, excluding vehicles and gas stations, rose 0.9%.\u00a0 Target Tumbles As Profits Drop Target (TGT) shares are tumbling 15.1% ahead of the open after missing Q3 expectations and warning of a weak holiday quarter. Here\u2019s how the retailer\u2019s results compared to analysts\u2019 expectations: EPS: $1.54 vs $2.13 expected Revenue: $26.52 billion vs $26.38 billion expected Profit was down about 50% year over year as the company cleared excess inventory.\u00a0 Inventory was up 14% compared to Q3 2021 vs 36% in Q2 and 43% in Q1. Target said it plans to cut up to $3 billion in total costs over the next three years.\u00a0 The company said it is planning for a weaker Q4, forecasting a low single-digit decline in comparable sales and operating margins around 3%.\u00a0 Lowe\u2019s Beats Q3 Expectations Lowe\u2019s (LOW) shares are up 1.5% in premarket trade after beating Q3 estimates.\u00a0 Here\u2019s how the home improvement retailer\u2019s results compared to analysts\u2019 expectations: EPS: $3.27 vs $3.10 expected Revenue: $23.48 billion vs $23.13 billion expected Lowe\u2019s reported 19% growth in its professional segment while online sales rose 12%.\u00a0 But the company did update its full-year guidance, lowering the top end of its revenue forecast to between $97 billion and $98 billion vs $99 billion previously.\u00a0 Lowe\u2019s also expects comparable sales to be flat or down 1% vs the prior outlook for down 1% to up 1%. Homebuilder Sentiment Expected to Slide Further The National Association of Homebuilders releases its November sentiment index at 10:00 a.m. ET today.\u00a0 That index is expected to have fallen 2 points this month to 36.\u00a0 That extends a steep decline seen in recent months as mortgage rates have surged.\u00a0 Homebuilders have cited higher rates and continued labor and supply chain shortages for their decreased confidence.\u00a0<\/p>\n","protected":false},"author":41,"featured_media":65094,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-65079","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\/65079","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=65079"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/65079\/revisions"}],"predecessor-version":[{"id":65097,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/65079\/revisions\/65097"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/65094"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=65079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=65079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=65079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}