J.C.

Penney sales fall short, net loss doubles

Same-store sales fell more than expected at J.C. Penney Co in the first quarter and its net loss nearly
doubled after the retailer exited its appliance and in-store furniture businesses, sending shares down on
Tuesday. Chief Executive Jill Soltau, on an earnings conference call, warned investors that Penney would
likely take a further hit if U.S. President Donald Trump imposed additional tariffs on another $300 billion
worth of imports from China. Soltau reassured investors the company had worked hard "for the better
part of the last several years" to reduce reliance on Chinese suppliers and would try to reduce any
consequential impact. Penney, which reiterated its previously issued financial forecast for the year,
expects free cash flow to be positive for fiscal 2019. Analysts expect a loss of 77 cents per share,
compared with a loss of 94 cents in 2018, according to IBES data from Refinitiv.

https://www.reuters.com/article/us-jc-penney-results/j-c-penney-sales-fall-short-net-loss-doubles-
shares-sink-10-idUSKCN1SR154

Home Depot same-store sales disappoint, warns of tariff impact

Home Depot Inc on Tuesday blamed wet weather in February and a slump in lumber prices for its
slowest growth in quarterly same-store sales in at least three years, while warning of a $1 billion impact
from new tariffs on Chinese imports. Home Depot said weak lumber prices hurt its first-quarter sales
growth by $200 million and if prices do not improve for the rest of its fiscal year, it could dent overall
sales by as much as another $600 million. Same-store sales at the home improvement chain rose 2.5% in
the quarter ended May 5, but missed expectations of a 4.2% increase, according to IBES data from
Refinitiv. Net sales rose 5.7% to $26.38 billion, beating expectations of $26.36 billion.

https://www.reuters.com/article/us-home-depot-results/home-depot-same-store-sales-disappoint-
warns-of-tariff-impact-idUSKCN1SR0YJ

Kohl's chops profit forecast after dismal first quarter

Kohl's Corp cut its full-year profit forecast and reported lower-than-expected quarterly results as the
department store chain sold fewer full-price spring apparel and saw weak demand for home goods,
sending its shares down. "Based on the soft start to the year, the adjustments we are making to be more
competitive and higher cost due to tariff, we are planning the year more conservatively," Chief Executive
Michelle Gass said. Kohl's said the softness in the first quarter would affect the second quarter too, but
expects some recovery in sales in the second half of the year as the retailer expands its partnerships and
makes its advertising more targeted. The company expects fiscal 2019 adjusted profit between $5.15
and $5.45 per share, below its prior outlook of $5.80 and $6.15.

https://www.reuters.com/article/us-kohls-results/kohls-chops-profit-forecast-after-dismal-first-quarter-
shares-slump-idUSKCN1SR14X?il=0

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 Nordstrom cuts 2019 forecast after quarterly results miss big

Nordstrom Inc on Tuesday cut its forecast for full-year sales and profit after reporting weaker than
expected first-quarter results that were hurt by the roll out of a new loyalty program and slow sales of
full-priced women's clothing. Co-president Erik Nordstrom said on a post-earnings conference call the
company stopped sending rewards "notes" to its loyalty customers by mail attempting to get the
program online and reach customers faster. That shift caused a reduction in foot traffic at all its stores,
the executive said, as many customers rely on receiving these rewards by mail. The company, which said
it was on track to open its first women's store in New York this October, now expects 2019 net sales
between a 2% fall to flat, compared with its previous projection of a 1% to 2% rise. The company expects
2019 profit between $3.25 per share and $3.65 per share, compared with its prior forecast of $3.65 per
share to $3.90 per share.

https://www.reuters.com/article/us-nordstrom-results/nordstrom-cuts-2019-forecast-after-quarterly-
results-miss-big-idUSKCN1SR2D5

VF Corp's 2020 forecast disappoints as demand for Vans sneakers slows

Apparel maker VF Corp forecast full-year revenue and profit below expectations on slowing demand for
its popular outdoor wear label North Face and sneaker brand Vans, sending its shares down. The
company wants to better focus on the high-margin brands, and is, therefore, spinning off its less
profitable jeans business, including Lee and Wrangler brands. The separation will be completed this
week. The company now expects sales growth in its active segment, which includes Vans, to slowdown
further. Full-year sales for the company's active segment are expected at 6% to 7%, compared with a
16% growth in 2019. The company also forecast 4% to 5% sales growth in outdoor segment that includes
North Face, compared with a 9% increase in 2019. VF Corp said it expects full-year adjusted profit in the
range of $3.30 to $3.35 per share.

https://www.reuters.com/article/us-vf-results/vf-corps-2020-forecast-disappoints-as-demand-for-vans-
sneakers-slows-idUSKCN1SS17A

Same-day deliveries, store revamps drive Target's strong results

Target Corp beat first-quarter estimates for same-store sales and profit on Wednesday, as the retailer's
strategy to invest more in its delivery services and revamp stores drew in more shoppers, sending its
shares up. Target is remodeling 300 stores a year and aims to cover 1,000 stores by the end of next year
as it looks to grow its online sales by more than $1 billion in 2019. Target said it has factored in the
recent hike in tariff on Chinese goods to 25% in its full-year forecast, which it kept unchanged. "Our
team continues to monitor trade negotiations and develop contingency plans to help mitigate the
impact of tariffs on our business," Chief Executive Officer Brian Cornell said. Total revenue rose 5% to
$17.63 billion, beating expectations of $17.52 billion.

https://www.reuters.com/article/us-target-results/same-day-deliveries-store-revamps-drive-targets-
strong-results-idUSKCN1SS14P

Sensitivity: Confidential
 Lowe's cuts 2019 profit forecast, blames higher costs, weak pricing

Lowe's Cos Inc cut its full-year profit forecast after reporting disappointing first-quarter earnings, as the
home improvement chain failed to raise prices in time to make up for higher costs, sending its shares
down. The CEO, Marvin Ellison, said Lowe's was looking to raise retail prices to help offset higher costs.
Overall, net sales rose 2.1% to $17.74 billion, beating expectations of $17.66 billion. Lowe's now expects
2019 earnings of $5.54 to $5.74 per share, down from its prior forecast of $6 to $6.10 per share.

https://www.reuters.com/article/us-lowes-results/lowes-cuts-2019-profit-forecast-blames-higher-costs-
weak-pricing-idUSKCN1SS11V

TJX raises full-year profit forecast after same-store sales beat

TJX Cos Inc raised its full-year profit forecast and beat quarterly same-store sales estimates on Tuesday,
as the off-price retailer's steep discounts attracted more shoppers. TJX, has been opening new shops
while attracting customers with its "treasure hunt" store formats. The company also hinted at easing
transportation and labor cost pressures by forecasting a 3% to 4% impact to full-year profit, compared
to the about 4% it forecast earlier. TJX raised its full-year earnings per share profit forecast range by a
cent to $2.56 to $2.61. Net sales climbed 6.8% to $9.28 billion, also topping expectations of $9.21
billion.

https://www.reuters.com/article/us-tjx-results/tjx-raises-full-year-profit-forecast-after-same-store-
sales-beat-idUSKCN1SR1C5

Canadian lender CIBC sees profit growth hitting a wall

Canadian Imperial Bank of Commerce on Wednesday fell short of profit estimates for the third straight
quarter, and said it expects zero earnings growth this year, sending its shares down. The fifth-largest
Canadian lender also said expenses could rise in 2019 but added net interest margins could grow. "We
will continue investing in our business for the long term despite short-term pressure on revenue," Victor
Dodig, chief executive officer of CIBC, said in a conference call with analysts. Net income from the
business rose 12%, boosted by higher underwriting and advisory fees.

https://www.reuters.com/article/us-cibc-results/canadian-lender-cibc-sees-profit-growth-hitting-a-wall-
shares-slide-idUSKCN1SS11L

Best Buy keeps full-year view, warns of higher prices from more tariffs

Best Buy Co Inc on Thursday stuck to its full-year forecast due to the impact of the latest U.S. tariffs on
Chinese imports and warned any new levies would increase prices for U.S. shoppers, sending its shares
down. "The impact of tariffs at 25% (proposed to be enacted) will result in price increases and will be
felt by U.S. consumers," outgoing Chief Executive Officer Hubert Joly said in a conference call with
analysts. Excluding one-time items, Best Buy earned $1.02 per share in the first quarter ended. Best Buy
forecast adjusted profit for the second quarter to be in the range of $0.95 to $1 per share, above Wall

Sensitivity: Confidential
 Street expectations of $0.96 per share. Its current quarter forecast for same-store sales too was largely
above estimates.

https://www.reuters.com/article/us-best-buy-results/best-buy-keeps-full-year-view-warns-of-higher-
prices-from-more-tariffs-idUSKCN1ST18R

Strong surgical instrument sales fuel Medtronic's upbeat forecast

Medtronic Plc reported quarterly profit ahead of estimates on strong demand for its surgical
instruments and forecast better-than-expected 2020 earnings on Thursday, sending shares of the
medical device maker up. The company has been building its minimally invasive and robotic surgery
device businesses through new launches and acquisitions to ease the impact of rising competition it
faces at its top-earning cardiac and vascular unit. Medtronic said it expects full-year adjusted earnings
between $5.44 and $5.50 per share, above analysts' expectation of $5.44.

https://www.reuters.com/article/us-medtronic-results/strong-surgical-instrument-sales-fuel-
medtronics-upbeat-forecast-idUSKCN1ST17V

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