over 3 years ago • 2 mins
Retailer Target and Lowe’s were feeling awfully pleased with their shopping experiences after announcing better-than-expected second-quarter results on Wednesday 👍
Sales at Target’s existing stores were 24% higher than the same time last year, compared to the 9% analysts had been predicting. That uptick was partly thanks to a 195% rise in revenue in the company’s ecommerce segment, which included a – pause for effect – 700% rise in curbside collection. The retailer’s quarterly profit jumped too – by an expectation-busting 80%.
Home improvement retailer Lowe’s was too busy admiring its own handiwork to notice: sales at its existing stores grew by a higher-than-expected 35% versus the same time last year, and its profit was up 70% 🛠 It grew its sales faster than nosy neighbor Home Depot yet again too. In the first quarter, investors might’ve put that gap down to a well-timed spring sale from Lowe’s. Now, though, it looks like it might be a more permanent fixture.
Target’s stock rose 12% on Wednesday – probably because it’s benefited from lockdown-enforced online shopping and stimulus check-enabled spending. And with school shopping season around the corner, the company’s likely to keep benefiting 🛍 Lowe’s share price, on the other hand, only rose 1%. That could be because investors – who might’ve seen Home Depot’s positive update as promising news for its rival – pushed up Lowe’s stock on Tuesday, meaning good news was already “priced in” to its stock.
While Walmart, Target, Home Depot, and Lowe’s all did pretty well in the second quarter, off-price clothing retailer TJ Maxx (or TK Maxx in the UK) missed out 📉 Its quarterly loss – partly driven by forced store closures – was worse than expected, and its shares fell 6%. Then again, it's deemed a "discretionary" retailer, not an essential one like Walmart and Target – and as such wasn't allowed to stay open throughout the pandemic like they were.
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