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August 22, 2018

Q2 2018 Thomson Reuters Retail and Restaurant Aggregate Estimates and Revisions

by Jharonne Martis.

  • Second quarter earnings are expected to increase 29.1% from Q2 2017.
  • 77% of companies in our Retail/Restaurant Index have reported 2Q 2018 EPS.
  • Of the companies in the Retail/Restaurant Index that have reported earnings to date for Q2 2018, 73% have reported earnings above analyst expectations, 7% matched, while 20% reported revenue below analyst expectations.
  • The Q2 2018 blended revenue growth estimate is 8.8%.
  • 66% have reported revenue above analyst expectations, and 34% reported revenue below analyst expectations.
  • Target beats Q2 2018 earnings, revenue and same store sales expectations. The retailer posted 6.4% traffic growth, stronger than Walmart’s 2.2% traffic growth. Still, Target margins continue to be pressured from fulfillment costs as their digital channel continues to grow, and rapidly rollout of new convenience fulfillment options across the country.
  • Nordstrom partners with Instagram famous brand Lively which will improve margins and lure millennials into the store – something department stores had been struggling with for some time. The popular lingerie will be sold at full price, which means higher margins and staying true to the brand image of exclusivity. Nordstrom saw strategic brands sales up 13% making up almost half of its full-price business, which underlines the importance of strategic partnerships.

Nordstrom Outperforms Department Stores Store Sales index

Source: I/B/E/S data

SAME STORE SALES:

Of the 38 retailers that have reported Q2 Same Store Sales, 59% exceeded estimates, 3% matched while 38 missed.

Same Store Sales Winners, Losers, Surprises, Misses

Of the 35 restaurants that have reported Q2 Same Store Sales, 46% exceeded estimates, while 54% missed.

Restaurant Same Store Sales – Best, Worst, Surprises, Misses

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