Retailers, consumers and prices
Check Out Line: Retailers’ results surprise Street
Home Depot, the top specialty home improvement retailer, said its quarterly profit was 35 cents per share in the first quarter, excluding items, topping Wall Street estimates for profit of 28 cents.
Aggressive cost cuts – such as closing its Expo Design Center chain and laying off about 7,000 workers – helped offset a 9.7 percent decline in sales.
The same phenomenon occurred at high-end retailer Saks, whose 3 cent-per-share loss, excluding items, blew away analysts’ average expectation for a loss of 26 cents per share.
Saks shares jumped nearly 13 percent in premarket trade, while Home Depot shares slumped 1.7 percent as the results, while still better than expectations, were not as good as those from rival Lowe’s, which reported better-than-expected profit on Monday due to strong sales of outdoor goods.
Saks raised its target for cost cuts, even as it expects sales to decline throughout the rest of the year.
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