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Reliance Trading Co. Limited – US Markets – The Week Ahead - Key Earnings Reports
Retail takes centre stage Tuesday. Two heavyweights, Home Depot and Kohl's, will release quarterly results ahead of the market open.
By: Reliance Trading Co. Limited
In late June, Home Depot CEO Craig Menear told CNBC that lumber was pressuring the marketplace. Investors will be keen to see what management says about those challenges during the second quarter.
Management has also previously said that Home Depot wouldn't feel much pressure from tariffs. About 70% of Home Depot's goods are domestic, according to the company. Menear has said that Home Depot would do whatever it takes to protect its customer.
Home Depot is expected to report adjusted earnings of $3.08 per share on $30.96 billion in revenue, according to data compiled by Bloomberg. Same-store sales, a key metric for retailers, is expected to have grown 3.5% during the second quarter.
Kohl's will also report second-quarter results ahead of the opening bell. Analysts are expecting the department store to report adjusted earnings of $1.53 per share on $4.20 billion in revenue. Same-store sales are expected to have fallen 2.3% during the quarter.
Much like the other retailers, tariffs will be a key focal point for investors. Kohl's currently sources about 20% of its products from China, but its partner brands import their goods from China, so Kohl's is exposed through those brands indirectly. Analysts are predicting that Kohl's will slash its full-year guidance in response to the looming tariffs set to go into place later this year.
Investors will also be expecting to hear how Kohl's partnership with Amazon affected foot traffic during the quarter. In attempt to drive foot traffic to physical Kohl's stores, the department store announced earlier this year that it would be accepting Amazon returns in all of its locations nationwide.
Other notable earnings reports scheduled for Tuesday include TJX Companies before market open, and Toll Brothers, Urban Outfitters after market close.
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Experienced, local and independent, Reliance Trading Co. Limited has a deep knowledge of markets and what causes change; we have local roots in Hong Kong but maintain a global reach and worldview; and we are a truly independent business which allows us to give you sound investment advice based on facts, not spin.
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