Regal Entertainment Group has been recently under pressure as the movie industry has faced choppy trends. While 1Q opened strongly for the industry, numerous analysts noted that 2Q trends were below expectations. This continues a broader trend of weakness in attendance across the movie industry over the last several years. Analysts have attributed this weakness to competing forms of entertainment and a weaker slate of films. Additionally, analysts worry that a shortening release window for movies could potentially hamper growth further moving forward.
On Monday, Netflix reported 2Q17 earnings that sent the stock soaring up 14% on Tuesday. While significant, this represented just another incremental step upwards in the company’s longer-term trajectory. Over the last year, the stock is now up 87%, and over the last 5 years, the stock is up 1,416%.
Weekly Roundup – June 29
By: Visible Alpha
Bed Bath & Beyond (BBBY): Analysts Expect BBBY Estimates to Fall Short of Management Guidance
Last week, Bed Bath & Beyond reported 1Q17 results that were well-below expectations. The results were highlighted by -2.0% comparable store sales growth, which compared to the company’s full-year guidance of “relatively flat to slightly positive” comparable store sales growth. Reported EPS of $0.53 was also well-below consensus of $0.66. Read more…
Last week, Bed Bath & Beyond reported 1Q17 results that were well-below expectations. The results were highlighted by -2.0% comparable store sales growth, which compared to the company’s full-year guidance of “relatively flat to slightly positive” comparable store sales growth. Reported EPS of $0.53 was also well-below consensus of $0.66.
Darden will report fiscal 4Q17 results on Tuesday before market open. This will be one of the first restaurants to report on results in calendar 2Q, and therefore will be watched closely by the industry.
Dick’s Sporting Goods (DKS)
After numerous years of bankruptcies and heightening concerns from the ascent of e-commerce, investors are beginning to see value again in brick and mortar retailers.
The office supply industry has struggled for some time as digitization has hurt office supply consumption. As the leading specialty retailer, Staples has attempted to manage the headwinds through a number of different actions. Last year, the company attempted to drive continued consolidation in the industry by merging with rival Office Depot. However, a federal judge ruled in favor of the FTC and blocked the merger. Now, the company is focused on improving its North American Delivery segment and rationalizing its North American Retail footprint.
A month ago, the TJX Companies (TJX) reported 1Q17 earnings that slightly missed expectations and sent the stock downward. The company’s Marmaxx segment, which consists primarily of T.J. Maxx and Marshalls stores, reported flat comparable store sales growth and missed consensus expectations of 1.1%. The company also gave 2Q Marmaxx comparable store sales guidance of 1-2%, falling below below consensus expectations of 2.3%.
Last December, Starbucks management laid out its longer-term growth plans. Central to these plans were targets of high-single digit store growth and mid-single digit comparable store sales growth. How do these targets compare to what analysts are currently modeling for the company?
On LULU’s fiscal 4Q conference call, senior management noted a material slowdown in stores and on their website to start their 1Q17. Management noted that store traffic softened in February and March, while conversion on their website was negatively impacted.
