Quarterly earnings results are a good time to check in on a company’s progress, especially compared to other peers in the same sector. Today we are looking at Target (NYSE:TGT), and the best and worst performers in the large-format grocery & general merchandise retailer group.
Big-box retailers operate large stores that sell groceries and general merchandise at highly competitive prices. Because of their scale and resulting purchasing power, these big-box retailers–with annual sales in the tens to hundreds of billions of dollars–are able to get attractive volume discounts and sell at often the lowest prices. While e-commerce is a threat, these retailers have been able to weather the storm by either providing a unique in-store shopping experience or by reinvesting their hefty profits into omnichannel investments.
The 4 large-format grocery & general merchandise retailer stocks we track reported a strong Q3; on average, revenues beat analyst consensus estimates by 0.6% Inflation (despite slowing) has investors prioritizing near-term cash flows, but large-format grocery & general merchandise retailer stocks held their ground better than others, with the share prices up 7.3% on average since the previous earnings results.
Best Q3: Target (NYSE:TGT)
With a higher focus on style and aesthetics compared to other large general merchandise retailers, Target (NYSE:TGT) serves the suburban consumer who is looking for a wide range of products under one roof.
Target reported revenues of $25.4 billion, down 4.2% year on year, in line with analyst expectations. It was a very strong quarter for the company, with an impressive beat of analysts' earnings estimates.
Target delivered the slowest revenue growth of the whole group. The stock is up 29.9% since the results and currently trades at $143.74.
Is now the time to buy Target? Access our full analysis of the earnings results here, it's free.
Designed to be a one-stop shop for the suburban consumer, Costco (NASDAQ:COST) is a membership-only retail chain that sells groceries, apparel, toys, and household items, often in bulk quantities.
Costco reported revenues of $57.8 billion, up 6.2% year on year, in line with analyst expectations. It was a strong quarter for the company. Despite slightly missing same-store sales expectations on a consolidated basis and in the US specifically, Costco managed to beat revenue expectations by a small margin. Slightly better profits led to a more convincing EPS beat.
Costco delivered the fastest revenue growth but had the weakest performance against analyst estimates among its peers. The stock is up 5.6% since the results and currently trades at $666.75.
Is now the time to buy Costco? Access our full analysis of the earnings results here, it's free.
Weakest Q3: BJ's (NYSE:BJ)
Appealing to the budget-conscious individual shopping for a household, BJ’s Wholesale Club (NYSE:BJ) is a membership-only retail chain that sells groceries, appliances, electronics, and household items, often in bulk quantities.
BJ's reported revenues of $4.92 billion, up 2.9% year on year, in line with analyst expectations. It was a decent quarter for the company, with a narrow beat of analysts' revenue estimates. In addition, the company maintained its full year EPS guidance, which was very slightly ahead of current Consensus.
The stock is down 1.4% since the results and currently trades at $66.82.
Known for its large-format Supercenters, Walmart (NYSE:WMT) is a retail pioneer that serves a budget-conscious consumer who is looking for a wide range of products under one roof.
Walmart reported revenues of $160.8 billion, up 5.2% year on year, surpassing analyst expectations by 1.4%. It was a decent quarter for the company, with revenue outperforming Wall Street's estimates, driven by better-than-expected same-store sales growth. On the other hand, its full-year adjusted EPS forecast missed analysts' expectations.
Walmart pulled off the biggest analyst estimates beat among its peers. The stock is down 5% since the results and currently trades at $161.3.
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The author has no position in any of the stocks mentioned