Retail Winners and Losers in Q2

The third week of August brought key retail earnings, creating clear winners and losers. Home Depot ($HD) gained over 3% post-Q2 results despite slight misses on sales and EPS. TJX Companies ($TJX) rose nearly 3% on better-than-expected revenue and earnings, prompting an upward guidance revision.

On the downside, Target ($TGT) fell as Q2 sales slipped ~1% and comps declined ~2%, signaling share loss to Walmart ($WMT), which posted a 4.8% sales gain and lifted its outlook. Target now expects full-year sales to decline, in sharp contrast to Walmart’s raised forecast.

Looking ahead, the retail sector faces another busy earnings week, with over 10 more reports due in the fourth week of August. Notable names include Dollar General ($DG) and DICK’S Sporting Goods ($DKS).