Q3 2018 RETAIL SCORECARD – UPDATE

Seventy two percent of companies in our Retail/Restaurant Index have reported Q3 2018 EPS. Of the 150 companies in the index that have reported earnings to date, 68% have reported earnings above analyst expectations, 9% reported earnings in line with analyst expectations and 23% reported earnings below analyst expectations. The Q3 2018 blended earnings growth estimate is 17.7%.

The 3Q 2018 blended revenue growth estimate is 6.0%. 49% have reported revenue above analyst expectations, and 51% reported revenue below analyst expectations.

Here are the Same Store Sales and Earnings results for retailers reporting earnings this week:

Exhibit 2: Same Store Sales and Earnings Expectations/results – Week of NOVEMBER 12, 2018

Source: I/B/E/S data from Refinitiv.

E-commerce

The bulk of retailers continue to beat expectations, and post robust earnings growth. Consumers have more money in their pockets, are feeling great about their economic situation, and unemployment is low. But, on top of that retailers that smashed expectations are showing that their strategy investments are paying off, including Walmart which reported the strongest e-commerce growth this year. Walmart posted another quarter of strong growth, beat earnings and Same Store Sales estimates. And, has now posted four consecutive quarters of improving ecommerce growth.

Exhibit 2: Walmart E-commerce Sales

Source: I/B/E/S data from Refinitiv.