TJX Jumps on Earnings Beat, Target Sinks, Estée Lauder Falls

On this edition of Stock Movers:

- TJX (TJX) shares are up after the off-price retailer raised its full-year earnings per share outlook after better-than-expected results, a sign that shoppers wary of economic uncertainty are turning to discounters. The TJ Maxx and Marshalls parent now expects full-year earnings per share of $4.52 to $4.57, up from $4.34 to $4.43. The company said it assumed it will be able to offset the significant pressure it expects from tariffs throughout next year. Revenue of $14.4 billion in the three months ending Aug. 2 beat analysts’ expectations. Chief Executive Officer Ernie Herrman said in the statement that the current quarter is “off to a strong start.”

- Target (TGT) shares fell as the retailer’s pick for an internal CEO appointment offset better-than-expected 2Q results and its maintained guidance. Target named veteran Michael Fiddelke as its next chief executive officer, betting that the insider will revive the storied retailer struggling with weak sales. The company said Wednesday the board unanimously elected Fiddelke, who currently serves as chief operating officer, to be CEO starting in February. He will also join Target’s board, while current CEO Brian Cornell, who has led the big-box retailer since 2014, will transition to focus on his role as executive chair.

- Estée Lauder Cos. (EL) shares fell today. The company said it has hired external advisers to conduct a review of the brands it owns in a bid to accelerate a turnaround after years of sales declines. Chief Executive Officer Stéphane de La Faverie said the company is rethinking its portfolio in order to “focus on our highest return opportunities over the medium to long term,” he told analysts on an earnings call. “We will share updates in due course,” he added. The company has a variety of brands that focus on selling skin care, cosmetics, haircare and fragrances. In the most recent fiscal year, sales in the company’s skin care division fell 12% because of declines in the Estée Lauder and La Mer brands. Earlier Wednesday, Estée Lauder issued a weak profit outlook for its fiscal year that was dragged down in part by tariff costs.

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