1) More of the same in retail: earnings fell or beat on the top line, yet revenues were mostly light. Those that did give guidance were at the low end or below expectations.
If you want a clear example of the "double whammy" facing retailers, look no further than Chicos, which put up a big miss on earnings. The company missed consensus, and suffered an 80 percent plunge from last year's results. The double whammy: 1) sales tumbled, with comparable store sales down 3.4 percent, well below expectations; and 2) margins were also lower by 2.5 percentage points, clearly due to higher promotional activity. They gave no guidance, but the dividend increased.
Best Buy posted a strong beat, but its top line was light, and comparable store sales slid 1.2 percent. The company offered no guidance, but CFO Sharon McCollam said "in light of overall economic concerns, we are assuming that the industry declines in the consumer electronics category that we saw in the fourth quarter will continue. As a result, it is reasonable to expect that total company revenue and comparable store sales will remain slightly negative...in the first half of the year."
Kohls beat on top and bottom line, 2014 guidance of $4.04—$4.45, on the cautious side of of consensus of $4.39. Revenue guidance was expected to be up 0.5 to 2.5 percent, and comparable store sales flat to up 2 percent.
Sears loss was not as great as expected, but comparable store sales still down 6.4 percent, and they gave no guidance. They are still losing money, but one positive note: Sears and KMart seemed to be seeing positive same store sales for February.
Zales beat on bottom line, yet the top line was (again) light. Meanwhile, L-Brands saw a modest beat on bottom line, and was slightly light on revenues. Its 2014 guidance checked in below expectations, and it was upgraded at Buckingham to a "Buy" rating.
Hilton was light on bottom line, while it gave 2014 guidance within a range of 57—61 cents per share, below expectations of 65 cents per share. Global revenue per available room (RevPAR) is expected to be up 5 to 7 percent.