7 Big Retailers Report Earnings This Week — Here’s What You Need to Know

Samantha McDonald
·6 min read

Some of the industry’s biggest players are set to report quarterly earnings and revenues this week.

From department stores like Macy’s and Kohl’s to off-pricers like TJX Companies and sportswear chain Foot Locker, the results could collectively be viewed as the harbinger of retail’s pandemic exit. Market watchers are expected to follow closely the impact of fiscal stimulus and the vaccine rollout on brick and mortar and e-commerce. Also top of mind are the ongoing supply chain disruptions stemming from ongoing port congestions, as well as the comeback of dress shoes versus the resilience of athletic and comfort categories.

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Here, FN provides a preview of the aforementioned retailers’ reports, plus Ugg parent Deckers Brands, Ross Stores and Vans owner VF.

Macy’s Inc.

Release: Before market open on Tuesday, May 18

Forecast: Loss of 41 cents per share and revenues of $4.36 billion

What to watch: Eyes will be on the retailer’s digital business as it continues to work on reducing its brick-and-mortar fleet as part of the turnaround plan unveiled last February. (The chain is also making upgrades to existing stores and investments in merchandising, technology, talent and local marketing.) According to a recent report from foot traffic analytics platform Placer.ai, the department store sector is in the midst of a recovery, but continuing regulations in key states like California and New York are likely to have impacted Macy’s quarter.

Last quarter: For the three months ended Jan. 30, the department store recorded adjusted earnings per share of 80 cents, compared with the prior year period’s $2.12 in earnings per share. Analysts had forecasted earnings of 12 cents per share. Revenues fell 18.7% to $6.78 billion, versus Wall Street’s expectations of $6.5 billion.

The TJX Companies Inc.

Release: Before market open on Wednesday, May 19

Forecast: Earnings of 30 cents per share and revenues of $8.58 billion

What to watch: Since the start of the COVID-19 health crisis, the TJ Maxx and Marshalls parent has been reporting “open-only” comps, defined as the increase or decrease of sales at stores for the days they were open in the current quarter against sales for those same days in the prior year quarter. The financial results are expected to see some impact from temporary store closures in Europe and Canada.

Last quarter: For the three months ended Jan. 30, the off-price retail group logged diluted earnings of 27 cents per share, compared with 81 cents last year. On an adjusted basis, earnings per share amounted to about 50 cents compared with consensus bets of 62 cents in earnings per share. Revenues fell to $10.94 billion from the prior year’s $12.21 billion, compared with market watchers’ predictions of $11.48 billion.

Kohl’s Corp.

Release: Before market open on Thursday, May 20

Forecast: Earnings of 4 cents per share and revenues of $3.48 billion

What to watch: Over the past few months, the chain has seen growth in its home business, as well as the active and beauty categories. Kohl’s also recently faced pressures from an activist investor group that attempted to take control of its board. In mid-April, the retailer and the group — composed of Macellum Advisors GP LLC, Ancora Holdings Inc., Legion Partners Asset Management LLC and 4010 Capital LLC — struck a deal to add three new directors to its board.

Last quarter: For the three months ended Jan. 30, the Menomonee Falls, Wis.-based company posted adjusted earnings of $2.22 per share, versus the prior year period’s earnings of $1.99 per share. Wall Street had predicted earnings of $1.01 per share. Revenues declined 10.1% to $6.14 billion but still beat analysts’ projections of $5.86 billion.

Deckers Outdoor Corp.

Release: After market close on Thursday, May 20

Forecast: Earnings of 61 cents per share and revenues of $431.95 million

What to watch: Flagship brand Ugg and rising star Hoka One One are expected to drive gains at Deckers, which some analysts have touted as one of the biggest retail beneficiaries of stimulus checks and work-from-home culture in recent months. This will also mark the company’s fourth-quarter report and full-year report, compared with other retailers that are scheduled to release first-quarter results.

Last quarter: For the three months ended Dec. 31, the footwear group logged a 26% gain in earnings per share to $8.99 and revenues that spiked 14.8% to $1.078 billion — both record figures, according to the company. Market watchers had predicted earnings of $7.07 per share and revenues of $963.38 million.

Ross Stores Inc.

Release: After market close on Thursday, May 20

Forecast: Earnings of 87 cents per share and revenues or $3.85 billion

What to watch: For the upcoming first quarter, Ross is expecting comps to be down 1% to down 5%, versus the same period in 2019, which has been used as a relevant basis for comparison for a number of retailers due to the impact of the coronavirus pandemic in 2020. It also suggested that earnings per share will likely demonstrate the “deleveraging effect from the projected decline in same-store sales, increased supply chain costs, higher wages and ongoing COVID-related expenses.”

Last quarter: For the three months ended Jan. 30, the Dublin, Calif.-based chain logged profits of $238 million, or earnings of 67 cents per share, compared with the prior year’s earnings of $1.28 per share. Wall Street had predicted earnings of $1 per share. Revenues dropped to $4.23 billion from the year-ago period’s $4.41 billion, versus analysts’ expectations of $4.27 billion.

Foot Locker Inc.

Release: Before market open on Friday, May 21

Forecast: Earnings of $1.03 per share and revenues of $1.85 billion

What to watch: Wall Street continues to bet heavily on the athletic sector even as the country’s COVID-19 recovery takes shape, with some analysts suggesting that the chain’s stock is poised to produce better returns than the overall market. Over the past year, Foot Locker has also invested hundreds of millions of dollars in its store fleet, digital platforms, supply chain and logistics capabilities, as well as other infrastructure.

Last quarter: For the three months ended Jan. 30, the specialty athletic retailer saw earnings of $1.55 per share, compared with the prior year’s earnings per share of $1.63. Its earnings per share beat consensus estimates of $1.35 in earnings per share. Revenues, however, declined 1.4% to $2.19 billion, versus predictions of $2.29 billion.

VF Corp.

Release: Before market open on Friday, May 21

Forecast: Earnings of 29 cents per share and revenues of $2.5 billion

What to watch: Investors will be keen to see the performances of VF’s digital and China businesses, which showed strong momentum in the prior quarter, while analysts will likely keep tabs on the impact of a challenging brick-and-mortar operating environment in the U.S. and Europe. The corporation also raised its guidance for the full year as it looked to bounce back from the impact of COVID-19 disruptions and capitalize on its acquisition of streetwear brand Supreme.

Last quarter: For the three months ended Dec. 26, the apparel and footwear company posted adjusted earnings per share of 93 cents, compared with analysts’ forecasts of 90 cents per share. Revenues decreased 6% to $3 billion, meeting Wall Street’s expectations.

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