Major retailers including Kohl’s (KSS), Macy’s (M), and BJ’s Wholesale Club Holdings (BJ) reported Q3 results today. Let us look at how these major retailers fared in the third quarter.
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Kohl’s Q3 Earnings Disappoint
Shares of Kohl’s were up in morning trading on Thursday even as the company reported disappointing Q3 results. KSS, the retailer with its chain of department stores reported total revenues of $4.27 billion, a decline of 7% year-over-year but surpassing Street estimates by $220 million.
Adjusted earnings came in at $0.82 per share halving from $1.65 in the same period last year, surpassing analysts’ estimates of $0.77 per share.
On a more discouraging note, the company withdrew its FY22 guidance citing macroeconomic volatility and the transition of its CEO. Its CEO Michelle Gass has left the company and the Board is “focused on supporting the management team during this CEO transition period, as well as the Board’s search committee in its pursuit of finding the next CEO to lead Kohl’s.”
Kohl’s stated that currently, Interim CEO Tom Kingsbury would be at the helm.
Macy’s Reports Better-than-Expected Q3 Results
Shares of Macy’s were on an upswing in morning trading on Thursday as the retailer delivered better-than-expected Q3 results. While its net sales declined 3.9% year-over-year to $5.2 billion in Q3, this figure still surpassed estimates by $30 million.
Adjusted earnings came in at $0.52 per share versus $1.23 in the same quarter last year and came in ahead of Street estimates of $0.18 per share.
The retailer reaffirmed its sales outlook for FY22 and now expects sales to range between $24.34 billion and $24.58 billion. More encouragingly, Macy’s raised its adjusted diluted earnings guidance in the range of $4.07 to $4.27 per share from its prior outlook between $4 and $4.20.
BJ’s Delivers Earnings Beat in Q3
Shares of BJ’s Wholesale Club Holdings were down in morning trading on Thursday even as the membership-only warehouse club chain reported stellar Q3 results after beating Street estimates both on the topline and bottom line.
The retailer reported revenues of $4.79 billion, up 12.2% year-over-year and beating analysts’ estimates by $130 million.
Adjusted earnings went up by 8.8% year-over-year to $0.99 per share and surpassed Street estimates of $0.84.
Laura Felice, EVP and CFO commented on its FY22 outlook, “We are optimistic about the outlook on our business given the sustained strength in our grocery business and our gains in market share. We now expect fiscal year 2022 comparable club sales growth, excluding the impact of gasoline sales, to be in the 5.0% to 5.5% range. While we expect continued merchandise margin rate pressure, we also now expect fiscal year 2022 EPS to be in the $3.70 to $3.80 range.”
