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DJIA Futures: +35 (+0.1%)
SPX Futures: +7 (+0.2%)
NASDAQ Futures: +39 (+0.3%)
Good morning friends!
Futures are rising as traders digest the latest batch of retail earnings and look ahead to Nvidia’s (NVDA) earnings this afternoon.
Let’s get right to it!
Foot Locker Plummets
Foot Locker (FL) shares are plummeting 30.1% ahead of the open after missing Q2 sales expectations and slashing its outlook for the second time this year.
Here’s how the sneaker giant’s results compared to analysts’ estimates:
- Adjusted EPS: $0.04 as expected
- Revenue: $1.86 billion vs $1.88 billion expected
Sales dropped 9.9% year over year as consumers pull back on discretionary spending.
Foot Locker now expects full-year sales to drop between 8% and 9% vs its previous forecast for a 6.5% to 8% decline.
The company sees same-store sales falling 9% to 10% vs 7.5% to 9% in previous guidance.
Foot Locker also cut its full-year adjusted earnings guidance to between $1.30 to $1.50 per share vs $2.00 to $2.25 previously.
Abercrombie Surges
Abercrombie & Fitch (ANF) shares are rallying 16.4% in premarket trade after crushing Q2 expectations and hiking its outlook.
Here’s how the retailer’s results compared to analysts’ estimates:
- EPS: $1.10 vs $0.17 expected
- Revenue: $935.3 million vs $842.4 million expected
Comparable sales jumped 13% year over year with Abercrombie’s namesake brand sales up 23% and Hollister sales rising 5%.
Inventory dropped 30% year over year as the company better-managed orders based on demand.
Abercrombie now expects net sales to rise 10% this fiscal year, up from its previous outlook for 2% to 4% growth.
The company also expects operating margins to improve to between 8% to 9% vs prior expectations of 5% to 6%.
Kohl’s Earnings Beat
Kohl’s (KSS) shares are up 1.1% ahead of the open after beating Q2 profit expectations.
Here’s how the retailer’s results compared to analysts’ estimates:
- Adjusted EPS: $0.52 vs $0.22 expected
- Revenue: $3.68 billion vs $3.69 billion expected
Revenue was down 4.8% year over year and Kohl’s maintained its full-year outlook.
The CEO said, “Our second-quarter earnings were in line with our expectations. We maintained strong sales momentum in Sephora at Kohl’s, reduced inventory by 14%, and managed expenses tightly.”
Peloton Plunges
Peloton (PTON) shares are plunging 29.3% in premarket trade after reporting a wider than expected fiscal Q4 loss.
Here’s how the exercise equipment maker’s results compared to analysts’ estimates:
- Loss per share: $0.68 vs $0.38 expected
- Revenue: $642.1 million vs $639.9 million expected
Peloton blamed the loss on the massive recall of its Bike seat post and seasonal changes in demand.
The company had 3.08 million subscribers at the end of the quarter, up 4% from a year ago but down by 29,000 from the previous quarter.
The CEO said, “Peloton’s FYQ4 performance is a reminder we operate a seasonal business.”
Mortgage Demand Hits 28-Year Low
Mortgage demand dropped last week as rates hit the highest level in 23 years.
The Mortgage Bankers Association reported total application fell 4.2% last week.
The average 30-year fixed contract rate rose to 7.31% from 7.16%.
Purchase applications dropped 5% weekly and 30% year over year.
That put buyer demand at the lowest level since December 1995.
Amid high rates, the adjustable-rate mortgage share of applications jumped to 7.6%, the highest level in 5 months.
ARM applications rose 4% weekly.
Refinance applications fell 3% weekly and 35% annually.
Mortgage rates have continued to climb this week with Mortgage News Daily showing the current rate at 7.49%.
In Case You Missed It
- Existing home sales fell more than expected in July. The National Association of Realtors reported existing sales dropped 2.2% to a seasonally adjusted annual rate of 4.07 million units. That was lower than economists’ expectations for 4.15 million. Sales were down 16.6% year over year and it was the slowest sales pace since July 2010. Supply remained tight amid high mortgage rates. There were 1.11 million homes for sale at the end of July, representing a 3.3-month supply. That was down 14.6% from a year ago and the lowest level since 1999. The median price of a home sold in July rose 1.9% year over year to $406,700.