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Retail
Walmart tumbles 9.2%; outlook misses expectations
Walmart shares tumbled 9.2% on Thursday despite the retail giant beating Wall Street expectations for fiscal second-quarter sales and raising its full-year outlook, as investors focused on weaker-than-expected comparable sales and cautious quarterly guidance. Walmart reported adjusted earnings per share of 81 cents, ahead of the 74 cents expected, while revenue reached $187.94 billion, compared with the $186.62 billion forecast. John Furner, President and CEO, noted in the release: "Our team delivered another good quarter, and we continue to make steady progress on the long-term value drivers of our business. "Our multi-year growth in eCommerce is evidence that customers are choosing Walmart because we deliver price, speed, and convenience across a broad assortment. Walmart's revenue rose 5.9% in the fiscal second quarter, while global e-commerce sales jumped 23%. U.S. comparable sales increased 2.6%, although that was partly offset by a 0.8% headwind in its health and wellness business after price caps on certain drugs took effect. The comparable-sales result fell short of the 3.5% increase expected by Wall Street, according to FactSet. For the third quarter, Walmart expects net sales to increase between 3% a
Retail
Target turnaround gains on tariff refund boost
Target's turnaround showed further signs of gaining momentum on Wednesday as the retailer reported stronger-than-expected quarterly sales, received a major tariff refund and raised its full-year outlook. Target reported adjusted earnings per share (EPS) of $2.46, beating the $2.35 expected, while revenue rose to $26.54 billion, above the $26.15 billion forecast. Net sales increased 5.3% from a year earlier, while comparable sales climbed 3.8%, exceeding Wall Street's 2.4% estimate, according to StreetAccount. The retailer said it recorded “broad-based” strength across its categories. Target's fiscal second-quarter net earnings received a $752 million boost, equivalent to $1.65 per share, from tariff refunds. The repayment also provided a $994 million pretax benefit to gross margin and operating income. The retailer raised its full-year net sales growth forecast to about 5%, up from its previous guidance by one percentage point, citing stronger sales trends and the one-off tariff benefit. Target now expects full-year adjusted EPS, including the tariff refunds, of $9.90 to $10.90. Excluding the repayment, the retailer expects EPS of $8.25 to $9.25, compared with its previous forecast of $7.50 to $8.50. Target share
Retail
Home Depot reaffirms 2026 guidance as housing freezes
Home Depot reported fiscal second-quarter results that beat Wall Street expectations on both revenue and earnings on Tuesday, while the home improvement retailer reaffirmed its full-year guidance amid what its chief financial officer described as “frozen housing market conditions.” The company reported adjusted earnings per share of $4.92, compared with the $4.73 expected by analysts, while revenue reached $47.86 billion, above the $47.24 billion consensus estimate. Net income rose to $4.77 billion, or $4.79 per share, from $4.55 billion, or $4.58 per share, a year earlier. Excluding one-time items, adjusted earnings per share came to $4.92. Revenue increased 5.7% year over year. Comparable sales increased 1.7%, beating expectations for a 0.9% rise, according to StreetAccount. CFO Richard McPhail said it was the strongest comparable-sales growth Home Depot has recorded since the fiscal third quarter of 2022. McPhail told CNBC that the company continues to operate in “frozen housing market conditions”, as elevated mortgage rates, limited housing turnover and economic uncertainty weigh on consumers' willingness to undertake projects associated with buying or selling homes. Home Depot nevertheless reaffirmed its fis
Retail
Giant Eagle swoops into Kroger’s hands for US$1.65bn
Kroger has agreed to acquire family-owned United States regional supermarket chain Giant Eagle for US$1.65 billion (A$2.4 billion) as it responds to intensifying competition from other retailers. The U.S.' largest supermarket operator said the consideration was $1.25 billion in cash and the assumption of about $400 million in outstanding liabilities. The acquisition will add Giant Eagle's network of 197 supermarkets and 11 standalone pharmacies to Kroger's 2,700 supermarkets in 35 states. “Giant Eagle is a well-run, high-quality regional grocer with a strong reputation for fresh products, pharmacy, private label and customer loyalty,” Kroger Chief Executive Officer Greg Foran said in a news release. “We evaluated the opportunity carefully, and the strategic fit is clear. Giant Eagle expands our reach into attractive adjacent markets, allowing us to do what we do best: Run outstanding stores, deliver fresh foods and convenient meal solutions at affordable prices, and take care of our customers and associates every single day.” This is the first major acquisition under New Zealand-born Foran, who joined as Chief Executive Officer in February after a career including roles at Woolworths, Walmart and Air New Zealand.
Retail
Lululemon shares take a hit after poor quarterly results
Lululemon shares have taken a hit after a difficult quarter. The activewear giant released its latest earnings report at the end of last week, with revenue up but income down. While revenue was posted at US$2.47 billion, compared to $2.37 billion a year ago, the cost of goods sold had spiked up 14%, alongside a 12.4% increase in selling and general expenses for the company. The overall result was a profit down by 4% and net income down by 38% for the quarter, as well as a drop in earnings per share to $1.69, from $2.60 the same time last year. Now, this week, Lululemon found itself trading at an eight year low. “We experienced a solid start to 2026…more recently, we have been navigating headwinds that have led us to adjust our outlook for the full year,” said Meghan Frank, Interim Co-CEO and Chief Financial Officer. “We have assessed the business and are taking additional actions to reposition where needed and further strengthen our product engine. We remain confident in our path forward.” The company maintains a market capitalisation of $14.4 billion.

Retail
Costco earnings: Fuel demand surges amid oil price spike
Costco Wholesale reported third-quarter results after the U.S. market close on Thursday (Friday AEST), with rising fuel prices driving record demand at its petrol stations, helping the retailer outperform expectations for comparable sales growth. The wholesale retailer reported earnings per share (EPS) of US$4.93, in line with market expectations, while revenue came in at $70.53 billion; an increase of 11.6% from $63.2 billion in the prior corresponding period (pcp), and also matching forecasts. Comparable sales rose 9.8% during the quarter, exceeding market expectations for growth of 7.8%. Excluding the impact of higher fuel prices, adjusted comparable sales increased 6.6%. Digital comparable sales climbed 21.5%, supported by a 37% increase in traffic across Costco’s website and mobile app. Membership fee revenue rose 11% to $1.37 billion, while the number of paid members increased 4.1% to 82.9 million. The retailer said its strongest-performing categories included pharmacy, home furnishings, gold and jewellery. Chief executive Ron Vachris said Costco experienced “record-breaking volumes” at its petrol stations during the quarter as consumers sought cheaper fuel amid rising oil prices linked to conflict in th
Retail
Walmart issues low guidance amid high fuel costs
Walmart beat revenue estimates last quarter, but shares fell more than 7% after it issued lower-than-expected guidance amid high fuel prices. Revenue was up 7.9% year-over-year to US$177.75 billion, above LSEG-compiled estimates of $174.98 billion. Earnings per share were $0.66, rising from $0.61 and in line with estimates. “Our results reflect our continued focus on delivering across the enterprise — better shopping experiences, a broader assortment, and faster delivery,” said Walmart president and CEO John Furner. “Our teams are adopting innovative technologies, driving productivity through automation, and growing higher-margin commerce solutions. It’s a disciplined approach that’s helping us grow the business and strengthen returns.” Comparable sales growth was 4.1%, in line with estimates but slowing from 4.5% one year ago. Global e-commerce sales were up 26%, and membership fee revenue rose 17.4%. Operating income increased 5% to $7.49 billion, though it said this included a 250 basis point hit from high fuel costs in distribution and fulfillment. The company’s outlook for the current quarter includes net sales growth of 4.0-5.0% and earnings per share of $0.72-0.74. This is below estimates of $0.75. Risi
Retail
Home Depot beats despite housing market strain
Home improvement retailer Home Depot beat earnings and revenue estimates last quarter, and reaffirmed its outlook despite ongoing housing market pressures. Earnings per share fell 3.7% year-over-year to US$3.43, above LSEG-compiled estimates of $3.41. Revenue was up 4.8% to $41.77 billion, passing estimates of $41.52 billion. “Our first quarter results were in line with our expectations. The underlying demand in our business was relatively similar to what we saw throughout fiscal 2025, despite greater consumer uncertainty and housing affordability pressure,” said CEO, president, and chair Ted Decker. The company reported 391.1 million customer transactions, an 0.9% fall. The average ticket grew 2.3% to $92.76. Comparable sales were up 0.6%, under StreetAccount estimates of 0.8%. Nine of its 16 merchandising departments saw an increase in comparable sales. Operating income was down 3% to $4.98 billion. Operating expenses rose 5.7% to $8.80 billion, driven by 5.7% growth in selling, general and administrative expenses. Across fiscal 2026, Home Depot has projected sales growth of 2.5-4.5% and adjusted diluted earnings per share growth 0-4%. LSEG estimates included sales growth of 4%, with earnings per share increasi
Retail
Target sales rise, lifts guidance amid turnaround plan
Retailer Target beat earnings and revenue estimates last quarter, and has doubled its annual sales growth guidance amid its turnaround efforts. Earnings per share were US$1.71, up from $1.30 one year ago and above LSEG-compiled estimates of $1.46. Net sales rose 6.7% to $25.44 billion, passing estimates of $24.64 billion. “First quarter financial results were stronger than expected, providing encouraging early signs that our clarified strategy is resonating with our guests and driving broad-based growth across our business,” said CEO Michael Fiddelke. “While we're pleased with our Q1 performance, our focus remains on building consistent, long-term growth, and we recognize there is much more work in front of us. As we look ahead, we're focused on staying disciplined and flexible in an uncertain operating environment and continuing to invest boldly in our team, capabilities, and an elevated guest experience to unlock our full potential over time.” Target credited the sales increase to a 6.4% rise in merchandise sales to $24.89 billion, above estimates of $24.18 billion. This was driven by its baby & kids and health & wellness categories, according to Fiddelke. It also reported 24.6% growth in non-merchandise sales. To