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.
eBay’s Marketplace Transaction revenue is a major focus for senior management and investors. In 2016, Marketplace Transaction revenue grew 3.2%, and in the company’s most recent 1Q results, the segment grew 3.1%. This was an improvement from prior years, but the segment continues to lag the broader growth underway in ecommerce.
Disney reported fiscal 2Q17 results last week that exceeded consensus earnings estimates but missed consensus revenue estimates. The revenue miss largely came from Disney’s Media segment, which made up 30% of the company’s overall revenue and 45% of total operating income in 2016.
Whole Foods (WFM): Increased Scrutiny on 2Q Results on Wednesday
By: Visible Alpha
Whole Foods reports fiscal 2Q results on Wednesday, with the results being scrutinized more closely than usual. The reason: activist investor Jana Partners disclosed a 9% ownership stake on April 10th. Jana is pushing for a close review of the business and a potential merger or sale, while management is in the midst of attempting a turnaround. The pressure is on to show results.
Pandora will report its 1Q earnings next Monday, May 8. As with previous quarters, investors will be watching Advertising revenue for the quarter, which makes up the majority of the revenue for Pandora. Visible Alpha’s consensus estimates have Advertising growth of just 1.5% as management noted that they would be resetting their advertising strategy in 1Q.
