Tag Archives: Macy's Inc

Walmart raises minimum wage as retail labor market remains tight

An employee arranges beauty product gift boxes displayed for sale at a Wal-Mart Stores Inc. location in Los Angeles, California.

Patrick T. Fallon | Bloomberg | Getty Images

Walmart said Tuesday that it is raising its minimum wage for store employees to $14 an hour, representing a roughly 17% jump for the workers who stock shelves and cater to customers.

Starting in early March, store employees will make between $14 and $19 an hour. They currently earn between $12 and $18 an hour, according to Walmart spokeswoman Anne Hatfield.

With the move, the retailer’s U.S. average wage is expected to be more than $17.50, Walmart U.S. CEO John Furner said in an employee-wide memo on Tuesday.

About 340,000 store employees will get a raise because of the move, Hatfield said. That amounts to a pay increase for roughly 21% of Walmart’s 1.6 million employees.

The retail giant, which is the country’s largest private employer, is hiking pay at an interesting moment. Some economists are calling for a recession. Prominent tech companies, media organizations and banks, including Google, Amazon and Goldman Sachs, have laid off thousands of employees and set off alarm bells. And weaker sales trends have prompted retailers, including Macy’s and Lululemon, to recently warn investors about a tougher year ahead.

But so far, retailers have largely avoided job cuts. Instead, they are still grappling with a tight labor market.

Retail, compared with other industries, tends to have higher churn than other industries — which allows employers to manage their headcount by slowing the backfilling of jobs said Gregory Daco, chief economist for EY Parthenon, the global strategy consulting arm of Ernst & Young.

Yet he said retailers may also be planning cautiously. For the past 18 months, they have had to work harder to recruit and retain workers. If they lose too many employees, he said, hiring and training new employees can be costly.

“Any retailer is going to have to think carefully and think twice about laying off a good share of their workforce,” he said.

In Walmart’s employee memo, Furner said the wage hike will be part of many employees’ annual increases. Some of those pay increases will also go toward store employees who work in parts of the country where the labor market is more competitive, the company said.

Walmart is sweetening other perks to attract and retain employees, too. Furner said the company is adding more college degrees and certificates to its Live Better U program, which covers tuition and fees for part- and full-time workers. It is also creating more high-paid roles at its auto care centers and recruiting employees to become truck drivers, a job that can pay up to $110,000 in the first year. 

This story is developing. Please check back for updates.

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Walmart, Taiwan Semiconductor, Netflix, Carnival and more

Bing Guan | Bloomberg | Getty Images

Check out the companies making the biggest moves midday.

Walmart — Shares of retailer Walmart jumped more than 7% after reporting quarterly earnings that beat Wall Street’s expectations and raising its forward guidance. The company reported adjusted earnings per share of $1.50 on $152.81 billion in revenue, where analysts expected adjusted earnings per share of $1.32 and $147.75 billion in revenue, per Refinitiv.

Retail stocks — Retail stocks rose following Walmart and Home Depot‘s stronger-than-expected financial reports for the third quarter. Home Depot rose 1%, while Target shares rallied more than 3%. Kohl’s and Bed Bath & Beyond added roughly 3%. Macy’s and Nordstrom advanced about 5% and 3%, respectively.

Taiwan Semiconductor — Shares of the Taiwanese chipmaker soared more than 12% after Warren Buffett’s Berkshire Hathaway built a $4 billion new stake in the company. Berkshire added more than 60 million shares of the Taiwanese chipmaker’s American depositary receipts, by the end of the third quarter, making Taiwan Semi the conglomerate’s 10th biggest holding at the end of September.

Paramount Global — Shares of the media company jumped more than 9% after a filing revealed that Berkshire Hathaway increased its holding to $1.7 billion at the end of the third quarter. Paramount is still down more than 30% this year as it suffered from cord cutting and a drop in advertising revenue.

Louisiana-Pacific — The lumber maker saw its stock jump more than 10% after Omaha-based Berkshire took new positions in the company last quarter. The conglomerate’s stake was worth $297 million at the end of September.

Bath & Body Works — Bath and Body Works rose 4% after an SEC filing revealed that Dan Loeb’s Third Point bought $265 million in the retailer’s stock in the third quarter.

Netflix — The streaming giant added 3.8% after Bank of America double-upgraded the stock to a buy from underperform. He said the new ad tier and crackdown on password sharing could help the stock’s value increase 23.6%.

Fulcrum Therapeutics — Shares of the biotechnology company gained 8.6% after Goldman Sachs initiated coverage of the stock as a buy and said it could see an upside of 61.5% if its main experimental drugs kept performing well.

Vodafone — Vodafone’s stock dropped 6.8% after the company cut its earnings guidance and cash flow forecast. The mobile operator cited a challenging economic environment.

Getty Images — Getty Images’ stock plummeted 12% after revenue for the recent quarter missed Wall Street’s expectations.

Albemarle — Shares of the lithium miner dropped 6%. Rumors that an unnamed Chinese cathode manufacturer was cutting its production targets was putting pressure on U.S. lithium stocks, according to FactSet.

Signature Bank — Shares of the crypto bank jumped more than 10% after Signature reported minimal exposure to FTX and any potential destruction that could come from its collapse. Signature said it has only a deposit relationship with the exchange — it does not lend crypto or invest in it on behalf of clients — representing less than 0.1% of its overall deposits.

Mobileye Global — The autonomous vehicle systems software company rallied 4% after Baird initiated coverage of the stock with an outperform rating. Analyst Luke Junk called Mobileye a market leader, writing, “Net, we recommend purchase/would lean into any volatility, for this premier franchise/longer-term optionality.”

Sunnova Energy — Shares of solar company rose 7.5% after Deutsche Bank initiated coverage of Sunnova Energy, First Solar and Enphase Energy with buy ratings. First Solar was up 3.2%, and Enphase Energy rose 2%.

Capital One Financial — The regional bank’s stock sank 5% after it was downgraded by Bank of America to neutral from buy. Analyst Mihir Bhatia also cut his price target to $113 per share from $124.

Carnival — Shares of the cruise operator rose 6% after another report hinted inflation could be slowing. Royal Caribbean Cruises and Norwegian Cruise Line were also higher, up 4.9% and 2.5% respectively.

Chinese stocks — Chinese companies listed on the U.S. stock market rose following President Joe Biden’s meeting with China President Xi Jinping and despite disappointing retail sales data. Tencent Music Entertainment, which also posted beats on the top and bottom lines, soared about 30%. Alibaba rose roughly 12%. Pinduoduo and Baidu both rallied about 10%, and JD.com rose nearly 8%.

— CNBC’s Yun Li, Carmen Reinicke, Alex Harring, Samantha Subin and Tanaya Macheel contributed reporting.

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Twitter, Zoom, Palo Alto Networks, Macy’s and more

Check out the companies making headlines in midday trading Tuesday.

Zoom Video — Zoom sank more than 14% after missing on revenue estimates for the previous quarter due to a strong dollar. The videoconferencing company also cut its forecast for the full year amid slowing revenue growth.

Twitter – Shares of the social media network fell 6% after a whistleblower at the company filed complaints with the Securities and Exchange Commission, Federal Trade Commission and Justice Department alleging “extreme, egregious deficiencies by Twitter” related to privacy, security and content moderation.

Palo Alto Networks – Shares of Palo Alto Networks jumped 11% after the company reported an earnings beat Monday, driven by strong billings up 44% in the quarter. The cybersecurity company also raised its quarterly and full-year guidance, boosted its buyback program and announced the approval of a 3-for-1 stock split.

Macy’s – Shares of the department store rose more than 4% after the retailer reported a fiscal second-quarter profit and revenue that topped analysts’ expectations. Macy’s also teased that its digital marketplace, which was announced last year, is launching in the coming weeks. However, the company cut its full-year forecast, saying it anticipates deteriorating consumer spending on discretionary items such as apparel that will lead to heavy markdowns to move items off shelves.

Dick’s Sporting Goods — Shares climbed 2% after the sporting goods retailer topped earnings and revenue estimates in its second-quarter results and also raised its full-year financial outlook.

Medtronic — Medtronic shares sank 3.4% despite a beat on revenue and earnings in the recent quarter. The medical devices maker said that revenue fell from a year ago as it grapples with supply chain constraints.

JD.com — Shares of the e-commerce company based in China rose 3.8% after the company exceeded analyst expectations on the top and bottom lines in the recent quarter. JD.com also said that annual active customer accounts rose 9.2%.

XPeng — XPeng sank 8.8% after posting a wider-than-expected loss in the previous quarter. The China-based electric vehicle company topped revenue expectations but said deliveries nearly doubled from the year-ago period.

J.M. Smucker – Shares of the food products company rose more than 3% on Tuesday after J.M. Smucker’s first-quarter adjusted earnings topped expectations at $1.67 per share. Analysts surveyed by Refinitiv had penciled in $1.27 per share. Revenues were in-line at $1.87 billion. The earnings beat came despite a hit from the Jif peanut butter recall

Grocery Outlet Holding – Shares of the discount grocery store chain shed 4% after being downgraded by Morgan Stanley to underweight from equal weight. The firm cited downside to Grocery Outlet Holding’s 2023 estimates and not as much upside to its 2022 estimates being baked in. The stock has also already surged more than 40% this year. 

Pinduoduo — The e-commerce stock jumped 6.2% amid news that it’s reportedly preparing to launch an international e-commerce platform next month targeting North America.

— CNBC’s Carmen Reinicke, Yun Li, Sarah Min, Tanaya Macheel, Jesse Pound and Michelle Fox contributed reporting.

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This week is all about Powell, but don’t overlook any great earnings reports

Wall Street is collectively bracing for Federal Reserve Chair Jerome Powell’s speech later this week, CNBC’s Jim Cramer said Monday after the major U.S. stock indexes tumbled.

Powell’s address — set for 10 a.m. ET Friday as part of the Fed’s annual Jackson Hole symposium — is by far the biggest event on the calendar, according to the “Mad Money” host. The reason is investors are trying to gauge how hawkish the U.S. central bank may be in the coming months, and the Fed chief’s commentary is expected to offer clues on the matter.

While Friday’s speech is highly important to the market, Cramer stressed that he’s not ignoring corporate earnings and the economic insights they offer. He said reports last week from the likes of Cisco Systems and Target have been far better than feared, and he’s keeping his eye on many more this week.

Here is what Cramer is watching, with all earnings and revenue estimates compiled by FactSet:

Tuesday: Macy’s, Dick’s Sporting Goods, Toll Brothers and Intuit

Macy’s

  • Q2 earnings before the bell; conference call scheduled for 8 a.m. ET Tuesday
  • Projected EPS: 86 cents
  • Projected sales: $5.49 billion

Dick’s Sporting Goods

  • Q2 earnings before the open; conference call scheduled for 10 a.m. ET Tuesday
  • Projected EPS: $3.59
  • Projected revenue: $3.07 billion

Toll Brothers

  • Q3 earnings release after the close; conference call set for 8:30 a.m. ET Wednesday
  • Projected EPS: $2.30
  • Projected revenue: $2.51 billion

“I bet Macy’s has a decent story to tell about the right clothes at the right time. Dick’s is selling all the best sporting goods at good prices, and Toll Brothers is only making homes that it can reap huge profits on. All three should have gotten much better on that supply chain front, too, versus when they spoke last,” Cramer said.

Intuit

  • Q4 earnings release after the close; conference call at 4:30 p.m. ET Tuesday
  • Projected EPS: 98 cents
  • Projected sales $2.34 billion

Cramer said he’s expecting a “terrific quarter” from Intuit, driven by “good growth in tax returns and also all the things they do for small business.”

Wednesday: Nvidia, Salesforce, Snowflake, Splunk and Box

Nvidia

  • Q2 earnings after the bell; conference call slated for 5 p.m. ET
  • Projected EPS: 50 cents
  • Projected sales: $6.7 billion

Salesforce

  • Q2 earnings after the close; conference call set for 5 p.m. ET
  • Projected EPS: $1.03
  • Projected revenue: $7.69 billion

“Nvidia preannounced and missed not that long ago versus an already-lowered forecast. The same thing could happen again — rough time for these chips,” said Cramer, whose Charitable Trust owns both Nvidia and Salesforce shares. “I think Salesforce will complain about the strong dollar again, but don’t forget that it does a ton of business at Dreamforce and that conference is back in person this September.”

Snowflake

  • Q2 2023 earnings release after the close; conference call set for 5 p.m. ET
  • Projected EPS: 7 cents
  • Projected revenue: $721 million

Splunk

  • Q2 2023 earnings after the bell; conference call scheduled for 4:30 p.m. ET
  • Projected EPS: loss of 36 cents
  • Projected sales: $749 million

Box

  • Q2 2023 earnings after the close; conference call set for 5 p.m. ET
  • Projected EPS: 27 cents
  • Projected revenue: $245 million

“There are lots of other software companies reporting that people are worried about, like Snowflake, Splunk and Box. I think they’re doing fine, but it just might not matter because of this general malaise” in the market, Cramer said.

Thursday: Dollar General, Dollar Tree, Ulta Beauty, Gap, Affirm, Dell and Workday

Dollar General

  • Q2 earnings before the open; conference call set for 10 a.m. ET
  • Projected EPS: $2.94
  • Projected sales: $9.4 billion

Dollar Tree

  • Q2 earnings before the bell; conference call slated for 9 a.m. ET
  • Projected EPS: $1.60
  • Projected revenue: $6.79 billion

Dollar General and Dollar Tree should “please the market to no end because investors have decided that we’re headed into a recession and the hedge fund playbook says you have to own one or both of these two stocks” in that situation, Cramer said. “I don’t like mindlessly following the playbook, but it’s not wrong here. My preferred one, by the way, is Dollar General if they have the merchandise.”

Ulta Beauty

  • Q2 earnings release after the close; conference call set for 4:30 p.m. ET
  • Projected EPS: $4.95
  • Projected sales: $2.21 billion

“Both Estee Lauder and Target, which has embedded Ultas [in some stores], raved about how the chain’s doing. I think now we’re in a mask-off world, which is great for skin care. Ulta will shine,” Cramer said.

Gap Inc.

  • Q2 earnings after the bell; conference call scheduled for 5 p.m. ET
  • Projected EPS: Loss of 5 cents
  • Projected sales: $3.82 billion

Affirm

  • Q4 earnings after the close; conference call set for 5 p.m. ET
  • Projected EPS: Loss of 62 cents
  • Projected revenue: $355 million

Dell Technologies

  • Q2 2023 earnings release after the bell; conference call scheduled for 5:30 p.m. ET
  • Projected EPS: $1.79
  • Projected sales: $26.87 billion

Gap, Affirm and Dell all fall into what Cramer called the “troublesome” reports category for their own reasons.

“Gap could have still one more difficult quarter,” he said. “I’m not sure how good Affirm will be given how the market has turned against buy now, pay later. I think CEO Max Levchin will try to spin a good yarn, but it’s an awfully hard tape to pull that off in. Then there’s Dell. I bet it’s gonna report a solid number that will actually help tech, something we very well need by the time we get to [Thursday].”

Workday

  • Q2 2023 earnings after the close; conference call set for 4:30 p.m. ET
  • Projected EPS: 79 cents
  • Projected sales: $1.52 billion

“I think Workday had a good quarter, and maybe because it’s on the eve of Jackson Hole, it will be as irrelevant as [Monday’s] sell-off,” Cramer said.

Friday: Powell speech

“Wall Street is starting to have less confidence in the idea that the Fed will soon pivot to a more dovish posture. I think Jay Powell can afford to be a little less ruthless with the rate hikes here, but the market clearly disagrees,” Cramer said. “We’ll find out who’s right on Friday — we need to slog through the whole week to get to the Fed’s guillotine. But even if the guillotine blade falls, we can ride through the turbulence and do some buying on the way down after this incredibly difficult two-day sell-off.”

Disclosure: Cramer’s Charitable Trust owns shares of NVDA, CRM and CSCO.

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Walmart lays off corporate employees after slashing forecast

Exterior view of a Walmart store on August 23, 2020 in North Bergen, New Jersey

VIEW press | Corbis News | Getty Images

Walmart confirmed on Wednesday that it has begun to lay off corporate employees about a week after the company slashed its profit outlook and warned consumers had pulled back on discretionary spending due to inflation.

In a statement to CNBC, the retail giant described the layoffs as a way to “better position the company for a strong future.”

Anne Hatfield, a Walmart spokesperson, declined to say how many workers will be affected and what divisions have experienced cuts. She said Walmart is still hiring in parts of its business that are growing, including supply chain, e-commerce, health and wellness and advertising sales. 

“Shoppers are changing. Customers are changing,” she said. “We are doing some restructuring to make sure we’re aligned.”

The corporate layoffs were first reported by the Wall Street Journal.

Walmart is the largest employer in the country with nearly 1.6 million workers in the U.S. The company, seen as a bellwether for the nation’s economy, spooked investors last week when it cut its outlook for quarterly and full-year profit guidance. That warning had a chilling effect on the retail sector, dragging down the stocks of companies including Macy’s and Amazon and sending up a flare about the health of the American consumer.

Walmart said at the time that as shoppers spent more on necessities like groceries and fuel, they were skipping over high-margin merchandise like apparel. It said it would have to cut prices to sell more of those items, especially as a glut of inventory piled up in its stores and at those of competitors like Target and Bed Bath and Beyond.

Later that same week, Best Buy cut its profit and sales forecast, saying it was seeing softening demand for consumer electronics — big-ticket, discretionary purchases that some shoppers can postpone.

This story is developing. Please check back for updates.

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Macy’s speeds up plans to open smaller stores outside of malls

In 2020, Macy’s opened its first Market by Macy’s location, which was in the Dallas-Fort Worth area.

Source: Macy’s

Macy’s is accelerating its plans to open smaller stores that aren’t attached to suburban shopping malls, in a bid to evolve along with its customers’ shopping preferences coming out of the Covid pandemic.

The department store chain said Wednesday that it will open three stores this fall that each represent ways Macy’s is thinking about how it aims to reposition its real estate in the future. That includes:

  • Combining some of its different businesses under one roof
  • Closing one of its department stores at a traditional mall to open a smaller-format Macy’s store, known as The Market by Macy’s, in a more densely populated part of town nearby
  • Adding another Market by Macy’s location in an area where it already has multiple of those shops

“We want to be convenient and we want to make it easy,” Marc Mastronardi, Macy’s chief stores officer, said in an interview. “Customer behavior just keeps changing. And the more that we have the agility as an organization to shift and react, this feels like the next natural evolution.”

This fits into a broader strategy that Macy’s laid out to investors in February 2020, shortly before Covid-19 cases began to ramp up in the United States. At the time, the company said it planned to shutter 125 stores in lower-tier malls within three years and would explore formats outside of malls.

Since then, Macy’s has opened five stores under the Market by Macy’s banner, which are about one-fifth of the size of its full-line locations and tout services such as buy online, pick up in store. It will reach eight by the end of this year.

Going small and getting away from the mall has become somewhat of a trend in the retail industry. It’s a blueprint that retailers from Gap to Nordstrom have been following. Kohl’s also said it’s aiming to open 100 smaller-footprint locations over the next four years. Macy’s last year opened its first pint-sized Bloomingdale’s shop, called Bloomie’s.

Some of America’s malls have lost appeal – and tenants – as consumers nowadays tend to seek a quick and convenient shopping experience. Shoppers are also much less interested in spending hours browsing sprawling, multilevel shops, leading retailers to test slimmed-down versions.

“There are malls that are underperforming and this is an opportunity to get into a market in the right spot and in a new format,” said Mastronardi.

This fall, Macy’s will open its first-ever dual Market by Macy’s and Macy’s Backstage store, which is a competitor to off-price chains including T.J. Maxx, in the Chicago metropolitan area.

Second, it plans to shutter one of its mall-anchored department stores in the Chesterfield area of St. Louis in order to open a smaller Market by Macy’s location nearby, in an open-air strip mall known as Chesterfield Commons.

And third, Macy’s will open a Market by Macy’s store in Johns Creek Town Center, in Suwanee, Georgia, marking its third such location in the metro-Atlanta area.

Mastronardi said the Atlanta market has proven to be a place where people show an affinity for the Macy’s brand, and it’s also a highly trafficked area, giving Macy’s a reason to have a beefed-up presence.

He also said Macy’s customers are spending three times more online, on average, in markets where the retailer also has bricks-and-mortar stores.

“When we can be near a customer with a physical format our digital business is significantly better,” he said.

Macy’s counted 511 of its namesake locations, 55 Bloomingdale’s stores and 160 Bluemercury makeup shops, as of April 30.

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Twitter, Macy’s, Nvidia, Lululemon and more

A Lululemon sign hangs in front of their store at the Woodbury Commons Premium Outlets shopping mall on November 17, 2019 in Central Valley, New York.

Gary Hershorn | Corbis News | Getty Images

Check out the companies making headlines in midday trading Thursday.

Macy’s — Shares jumped 17.8% after the department store chain reported better-than-expected quarterly results and raised its profit guidance. Macy’s got a boost from shoppers who are snapping up apparel and other goods regardless of rising prices.

Twitter — Twitter shares jumped more than 5% after Elon Musk increased his commitment in his takeover bid to $33.5 billion. Analysts have said the move indicates a new seriousness by the Tesla CEO and increased probability that he’ll complete the deal, which has been mired in controversy since Musk proposed it in May.

Lululemon — Shares of the athleisure company jumped 10.8% after Morgan Stanley upgraded Lululemon to overweight and said its well-positioned to perform well, even as a recession looms.

Nvidia — The chipmaker’s stock gained 5.6% after falling earlier in the session. It came as Nvidia issued weaker-than-expected guidance for the current quarter and said it plans to slow hiring.

Broadcom — Broadcom’s stock gained 4.2% after the semiconductor company shared its plan to buy VMware in a $61 billion cash and stock deal. The acquisition would mark one of the largest technology deals in history.

Dollar Tree — The discount retailer soared 22.3% after posting quarterly earnings and revenue that beat analyst expectations. Dollar Tree reported earnings per share of $2.37 on revenues of $6.9 billion. Analysts anticipated earnings of $2.00 a share on $6.76 billion in revenue, according to Refinitiv.

Kraft Heinz — The food and beverage company fell 6.2% after UBS downgraded the stock of fears of rising inflation and competition from private labels.

Alibaba — Alibaba shares surged 14.8% following the release of better-than-expected results for the previous quarter. The Chinese e-commerce giant reported fiscal fourth-quarter earnings of CNY7.95 per share, excluding items, on revenues of CNY204.05 billion. Analysts had anticipated earnings of CNY7.31 a share on CNY199.25 billion in revenue, according to StreetAccount.

Dollar General – The discount retailer’s shares rallied more than 14% on the back of stronger-than-forecast quarterly figures. Dollar General posted first-quarter earnings of $2.41 per share on revenue of $8.75 billion. Analysts had expected a profit of $2.31 per share on revenue of $8.7 billion, according to the Refinitiv consensus.

Williams-Sonoma — The home furnishing retailer bounced 14.1% following a beat on revenue and earnings for the previous quarter. Williams-Sonoma also reiterated its guidance for the year.

Nutanix — The cloud company tumbled 21.9% after issuing weak guidance. Nutanix also said it’s facing supply chain issues that have hit hardware partners.

Medtronic – Shares of the medical device fell more than 4% after a weaker-than-expected report for the fiscal fourth quarter. Medtronic reported $1.52 in adjusted earnings per share on $8.09 billion of revenue. Analysts surveyed by Refinitiv were expecting $1.56 per share and $8.43 billion in revenue. Medtronic said supply chain issues weighed on results for the quarter.

— CNBC’s Tanaya Macheel, Hannah Miao, Sarah Min and Jesse Pound contributed reporting

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Cramer’s week ahead; Market needs obstacles resolved before a rally

CNBC’s Jim Cramer warned investors on Friday that a market rally has no chance of sustaining until the causes of the turmoil are resolved.

“If we want the market to stage a meaningful comeback, we need China to reopen, Russia to withdraw from Ukraine, and the [Federal Reserve] to curb-stomp inflation with a 100-basis point rate hike,” the “Mad Money” host said. “Unfortunately, only one of those three is within America’s control.”

His comments come on the heels of a volatile week of trading spurned by missed earnings quarters from retail behemoths, mounting investor concerns about inflation and global geopolitical tensions.

The S&P 500 closed around 19% below its record while the Nasdaq Composite reached 30% off its highs, in bear market territory. The Dow Jones Industrial Average recorded its first eight-week losing streak since 1923.

In addition to giving his take on the current market, Cramer looked ahead to next week’s slate of earnings and gave his thoughts on each reporting company. All earnings and revenue estimates are courtesy of FactSet.

Monday: Zoom

  • Q1 2023 earnings release after the close; conference call at 5 p.m. ET
  • Projected EPS: 96 cents
  • Projected revenue: $1.23 billion

Zoom stock will stay down unless the company innovates or acquires another company that helps it do so, Cramer said.

Tuesday: Best Buy, AutoZone, Toll Brothers

Best Buy 

  • Q1 2023 earnings release before the bell; conference call at 8 a.m. ET
  • Projected EPS: $1.59 
  • Projected revenue: $10.45 billion

Cramer noted that while he’d normally urge investors to buy shares of Best Buy at its current price, buying anything lately has felt risky.

AutoZone

  • Q3 2022 earnings release before the bell; conference call at 10 a.m. ET
  • Projected EPS: $26.20
  • Projected revenue: $3.71 billion

Cramer said that the company’s stock is a winner.

Toll Brothers

  • Q2 2022 earnings release after the close; conference call at 8:30 a.m. ET
  • Projected EPS: $1.50
  • Projected revenue: $2.08 billion

“Most skeptics … think the earnings will be cut in half in the future, if not more,” Cramer said.

Wednesday: Nvidia

  • Q1 2023 earnings release after the close; conference call at 5 p.m. ET
    Projected EPS: $1.30
  • Projected revenue: $8.12 billion

“The action ahead of the quarter has been horrendous. … I actually think the print will be a good one, I just don’t know if anyone will care,” Cramer said.

Thursday: Macy’s, Costco

Macy’s

  • Q1 2022 earnings release before the bell; conference call at 8 a.m. ET
  • Projected EPS: 82 cents
  • Projected revenue: $5.33 billion

Macy’s has a similar product line-up to Target, which reported worse-than-expected earnings this quarter, Cramer noted.

Costco 

  • Q3 2022 earnings release at 4:15 p.m. ET; conference call at 5 p.m. ET
  • Projected EPS: $3.04
  • Projected revenue; $51.32 billion

Cramer said that while the company is performing well, its stock is down so much that a huge special dividend and buyback might be the only thing that could make it rally.

Friday: Canopy Growth

  • Q4 2022 earnings release before the bell; conference call at 10 a.m. ET
  • Projected EPS: $10.70
  • Projected revenue: $130 million

“Canopy needs national legislation promoting use of marijuana, not just flat out legalization, but subsidies” for its stock to rally to its previous highs, Cramer said.

Disclosure: Cramer’s Charitable Trust owns shares of Costco and Nvidia.

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Macy’s (M) reports Q4 2021 earnings beat

People wear facemasks as they walk through Herald Square on January 8, 2021 in New York City.

Angela Weiss | AFP | Getty Images

Macy’s on Tuesday reported fiscal fourth-quarter earnings and sales that outpaced analysts’ estimates and said that a strategic review has prompted the retailer to accelerate its turnaround plans.

It is rejecting calls from activist Jana Partners for it to split its e-commerce operations from its stores, following a similar move by Saks Fifth Avenue. Macy’s had been working with consulting firm AlixPartners to consider the best path forward for the business.

Macy’s shares rose more than 8% in premarket trading following the news.

During the holiday period, the department store chain said it brought in roughly 7.2 million new customers. Chief Executive Jeff Gennette said the department store chain was able to deliver the solid results despite Covid-19 related disruptions, supply chain issues, labor shortages and elevated inflation.

Here’s how Macy’s did in its fourth quarter compared with what analysts were anticipating, based on a survey compiled by Refinitiv:

  • Earnings per share: $2.45 adjusted vs. $2 expected
  • Revenue: $8.67 billion vs. $8.47 billion expected

Net income for the three-month period ended Jan. 29 grew to $742 million, or $2.44 a share, from $160 million, or 50 cents per share, a year earlier. Excluding one-time items, the retailer earned $2.45 a share, better than the $2 that analysts were looking for.

Revenue grew to $8.67 billion from $6.78 billion a year earlier, beating expectations for $8.47 billion.

Same-store sales, on an owned-plus-licensed basis, rose 27.8% year over year. Analysts were looking for same-store sales growth of 24.25%, according to Refinitiv. The metric was up 6.1% on a two-year basis.

Digital sales rose 12% year over year and increased 36% on a two-year basis. E-commerce represented 39% of net sales.

The company cited strong performance in categories including home, fragrances, jewelry, watches and sleepwear.

Macy’s also offered an upbeat outlook for fiscal 2022, calling for sales to range between $24.46 billion and $24.7 billion, which would be flat to up 1% compared with 2021. Analysts had been looking for revenue of $24.23 billion, which would have been a slight decrease from the prior year.

Macy’s sees adjusted earnings per share for the year to be between $4.13 and $4.52. That’s better than the $4.04 analysts were looking for.

The company said in a press release it anticipates positive momentum and strong consumer demand in the months ahead. However, it said macro challenges such as inflation, supply chain pressures and labor shortages will persist. It said its annual outlook takes this into consideration.

Also on Tuesday, Macy’s announced a new $2 billion share repurchase program.

Macy’s shares are down about 2% year to date, as of Friday’s market close. Its market cap is $7.7 billion.

Find the full earnings press release here.

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Activist pressures Kohl’s to consider sale of online biz, report says

People shop at Kohl’s department store amid the coronavirus outbreak on September 5, 2020 in San Francisco, California.

Liu Guanguan | China News Service | Getty Images

An activist is reportedly pressuring Kohl’s to consider either a sale or a separation of its online business, following a similar move by the department store chain Saks Fifth Avenue, according to The Wall Street Journal.

The New York-based hedge fund Engine Capital reportedly wants Kohl’s to explore the two alternatives to try to boost its stock price, WSJ said. The activist group sent a letter to Kohl’s board on Sunday, the report said. Engine Capital owns a roughly 1% stake in Kohl’s.

Kohl’s shares closed Friday at $48.45, roughly where they were trading a decade ago, giving Kohl’s a market value of about $7.3 billion — less than that of Macy’s but more than Nordstrom’s. Kohl’s stock is up about 19% year to date, underperforming the S&P 500.

According to WSJ, Engine Capital said in its letter that assuming Kohl’s brings in online sales revenue of about $6.2 billion, Kohl’s digital business alone would be worth $12.4 billion.

Engine Capital also said it believes that there are private equity firms that would pay at least $75 per share, the report said. And the group of investors said that talks with potential buyers suggest they could further monetize Kohl’s real estate, WSJ reported.

Representatives from Kohl’s and Engine Capital didn’t immediately respond to CNBC’s request for comment.

These talks are arising as investors see the appeal of owning a piece of a faster-growing e-commerce division with more tech savvy operations. Saks’ digital arm is now reportedly aiming to go public with a valuation of $6 billion, or roughly six-times revenue. It had a $2 billion valuation as recent as March.

Meantime, Macy’s has been urged by activist group Jana Partners to spin off its e-commerce operations from its stores, hoping to fetch a greater valuation. Macy’s has since hired consulting firm AlixPartners to review its business structure.

“We also recognize the significant value the market is assigning to pure e-commerce businesses,” Macy’s CEO Jeff Gennette said on a recent earnings call. “And as we look at the landscape today, we are undertaking additional analysis that could help inform our long-term strategy to further unlock value for Macy’s.”

Kohl’s had another recent clash with activist investors who raised doubts about the company’s direction and tried to take control of its board. The group — Macellum Advisors, Ancora Holdings, Legion Partners Asset Management and 4010 Capital — came to an agreement with the retailer in April and added a few investor-backed independent directors to its board.

In 2014, Engine Capital pressured Ann, which owned the Ann Taylor and Loft fashion brands, to sell itself. The company did so the following year.

Read the full report from the Wall Street Journal here.

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