Bytes Top Bricks as Retailers Release Earnings Reports

The upcoming week will focus on retail earnings for the S&P 500. Twelve of the 21 companies in the index scheduled to report earnings are retailers. As of today, which retail sub-industries in the S&P 500 have reported or are projected to report the highest earnings growth and lowest growth for the first quarter?

Of the 13 retail sub-industries in the S&P 500, eight have reported or are expected to report earnings growth, led by the Internet Retail sub-industry. Five of the retail sub-industries have reported or are expected to report a year-over-year decline in earnings, led by the Department Stores sub-industry.

The Internet Retail sub-industry reported the highest earnings growth of all 13 retail sub-industries at 143.1%. Four of the five companies in this sub-industry reported earnings growth for the quarter, led by Amazon.com ($1.07 vs. -$0.12).          

The Home Improvement Retail sub-industry is projected to report the second highest earnings growth at 12.2%. Both companies in this sub-industry are predicted to report double-digit growth in EPS for the quarter. The mean EPS estimate for Home Depot for Q1 is $1.35, compared to year-ago EPS of $1.16. The mean EPS estimate for Lowe’s Companies for Q1 is $0.85, compared to year-ago EPS of $0.70. Home Depot is scheduled to release results on May 17, while Lowe’s Companies is scheduled to release results on May 18.

Department Stores Earnings Slump in Q1 2016

On the other hand, the Department Stores sub-industry reported the largest year-over-year decline in earnings of all 13 retail sub-industries at -47.8%. All three companies in this sub-industry reported a year-over-year decline in EPS of more than 25% for the quarter: Macy’s ($0.40 vs. $0.56), Kohl’s ($0.31 vs. $0.63), and Nordstrom ($0.29 vs. $0.66).

The Hypermarkets & Super Centers sub-industry is projected to report the second highest year-over-year decline in earnings of all 13 retail sub-industries at -14.1%. In this sub-industry, Costco has already reported results for Q1, while Wal-Mart Stores has yet to report results. The mean EPS estimate for Wal-Mart Stores is $0.88, compared to year-ago EPS of $1.03. Wal-Mart Stores is scheduled to release results on May 19