Anyone notice the trade war with China? They said if we raised tariffs on China, people wouldn’t shop at Target anymore. They told me that items in Target would be too expensive for the slothful American — greedily eating hammed burgers and speedily maneuvering their shopping carts up and down the aisle, filling it to the brim with cheaply made goods from Beijing.
It appears the China trade war is nothing more than another fiction, just like tax cuts and shutting down the government and US credit downgrades and all of the other shit that was supposed to ruin and soil the party.
Target: Solid 4Q18 results; impressive 2019 outlook — Telsey Advisory Group (72.67)
TAG: “Target reported solid 4Q18 results and provided better-than-anticipated 2019 guidance—highlighting continued success of its omni-channel transformation. The company’s 4Q18 EPS of $1.53 beat our inline estimate of $1.52, with same-store sales of 5.3% vs. our inline forecast of 5.0%. Traffic was impressive at up 4.5% and digital sales grew 31% (comp contribution of 240 bps), reflecting market share gains. The operating margin also was well managed, coming in essentially flat YoY at 4.9%, despite the gross margin decline of 46 bps to 25.7%, related to higher digital fulfillment and supply chain costs. Importantly, Target’s 2019 EPS guidance of $5.75-$6.05 is well ahead of our estimate of $5.72 and the FactSet consensus of $5.61. The company anticipates EBIT dollar growth in the MSD area, reflecting the company beginning to benefit from multiple years of investment to transform the business. Target shares are trading up in the pre-market, reflecting the good 4Q18 results and better-than-expected 2019 outlook. Overall, we believe Target’s strategic transformation initiatives—price investment in everyday items, differentiating merchandising with new private brands, remodeling stores, and investing in digital and delivery, including Shipt—are resonating with consumers. As always, our estimates and price target are under review pending further details at this morning’s analyst meeting at 9:00 am ET.”
Another retailer, Kohl’s crushed earnings too.
Kohl’s: First look at Q4 print — Telsey Advisory Group (66.47)
TAG: “Kohl’s 4Q18 EPS beat expectations as performance across key metrics moved in the right direction. The company generated a full quarter comparable sales increase of 1.0%, one of the strongest outcomes within the department store universe and resulted in a 2-YR stacked comp of 7.3%. Further, the 4Q18 comp was the company’s sixth consecutive quarter of growth. The operating margin was in-line with our forecast and inventory at quarter-end was down 1.9% YoY. The guidance for 2019 appears strong, with EPS forecast at $5.80-$6.15 (up 3.6%-9.8%) vs. consensus of $5.75 and our estimate of $5.80. We await further details on the company’s 9AM ET conference call, but believe Kohl’s fundamentals have been evolving in conjunction with consumers’ shopping behavior and preferences. Importantly, the company has been experiencing strength across the business in both digital and B&M channels, and in national brands and private label. Reiterate Outperform rating.”
Futures are flat, however, with oil edging up. A sundry of China stocks are popping off, including my NCTY.
Have a terrific Tuesday, fucked faces.
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