Walmart, Abercrombie and Fitch, and the Home Depot for the most part reported better than expected earnings this morning before the opening bell.
According to the Associated Press, earnings improved for each through a number of factors which include higher sales, cost control programs, and international exposure.
Wal-Mart Stores Inc. reported a 9.3 percent increase in third-quarter net income as the world’s largest retailer benefited from cost controls and a robust international business. The company also raised its full-year profit outlook.
The company posted net income of $3.44 billion, or 95 cents per share, in the quarter ended Oct. 31. That’s up from $3.14 billion, or 81 cents per share, in last year’s third quarter.
Abercrombie and Fitch:
Preppy teen clothing seller Abercrombie & Fitch Co. said Tuesday that higher international revenue and improving results in the U.S. helped its third-quarter net income rise 29 percent.
Net income for the quarter rose to $50 million, or 56 cents per share. That compares to $38.8 million, or 44 cents per share, last year and is higher than the 51 cents per share analysts expected, according to a poll by Thomson Reuters.
Revenue rose nearly 18 percent to $885.8 million from $753.7 million. Analysts expected revenue of $879.5 million.
Home Depot Inc. said Tuesday a tight lid on expenses helped the largest U.S. home-improvement retailer’s third-quarter net income rise 21 percent, despite a lackluster 1 percent revenue increase as home owners continue to hold back on bigger renovation projects.
Net income rose to $834 million, or 51 cents per share, from $689 million, or 41 cents per share. That is better than the 48 cents per share analysts expected, according to a poll by Thomson Reuters.
Revenue edged up 1 percent to $16.6 billion from $16.36 billion. Analysts expected $16.59 billion. Revenue in stores open at least one year rose 1.4 percent.
These numbers might be a strong indicator on retail sales for the upcoming Christmas season, although it is more likely they are tied to seasonal consumer spending. More people are spending on home improvement than buying new homes, and Walmart is getting a boost in revenue from people buying essentials over luxury items.
Walmart is already gearing up for massive discounts starting before Black Friday, which means they don’t expect consumers to come out and spend in large amounts this holiday season without huge incentives.