Yahoo Finance

Well a lot of retail names reporting earnings today here to round up the latest Yahoo finance senior reporter Brooke DiPalma, busy day for you.

Certainly was a busy day. Good afternoon to you Val. There was a big day for Abercrombie and Fitch, Dick Sporting Goods, as well as Macy's, all reporting their first quarter results that really surprised the street here. Let's kick things off with Abercrombie and Fitch. Now the specialty retailer beat across all key metrics, earnings, revenue and same store sales growth, which was up 4%. And that was boosted by, get this, remember Hollister? Well, the Hollister brand actually saw same store sales growth of 23% in the quarter. That's compared to the key Abercrombie brands 4% decline. Now, for the full year, the company is now expecting net sales to increase in the range of 3% to 6%. That was up from the 5% at the high end of the range that was previously announced. Wall Street really liked that. But it did lower its operating margin outlook to a range of 12.5% to 13.5% citing the impact of tariffs and mitigation efforts. Now the company did say that it plans to relocate the sources of supply. It also plans to diversify its sourcing to 16 different countries and also expects sourcing volume from China to be in the low single digits and is now working to negotiate all that with vendors. But Wall Street really liking this, stock now up roughly 13% as we make way towards the close.

What about Macy's and Dicks Sporting Goods? Two other names reported, what do they have to say?

Yeah, well, both of them beat expectations. That really shocked the street, especially in this large tariff uncertainty environment. But if we take closer look at Dick Sporting Goods, they did see same store sales growth roughly 4 and a half percent. And that was strength across footwear, apparel and team sports. They cited those as what really drove these results, but this didn't really come as a shock to Wall Street. You see shares up just roughly nearly 2%. They had announced the preliminary results when they announced that $2.4 billion acquisition of Foot Locker two weeks ago. And largely what they're hoping with that acquisition is they bring new customers. They expand globally as well as they emphasize that key point here. They're in the very early stages of this. They did, however, say that they expect the acquisition to be accretive to earnings per share in the first full year that the acquisition does close. And if you take a look at Macy's, similar story there, Wall Street not super excited either way. Shares roughly flat as we make our way to the close. What we saw there was same store sales decline, similar story here, down 1.2%. But hey, that was better than what Wall Street had anticipated there. We know we've been talking a lot about that turnaround attempt there. The stores where they invested in the 125 stores, they saw a decline of down 0.8%. So yet to be seen, but the CEO told us this morning that he expects progress to be made and momentum to continue as this sort of we get past what's happening right now.

Yeah, I mean, the other question is about guidance, because, you know, across the retail spectrum, there's been a range of responses and reactions to tariffs and to whether to even have guidance at all. So what was this latest crop? Would we be?

So Dick Sporting Goods, they reaffirmed their guidance here. They said that includes the impact of tariffs. So Wall Street certainly pleased by that. When it comes to Macy's though, they did reiterate their sales outlook. However, they did cut their earnings outlook due to what they said was uncertainty around tariffs, consumer sentiment and a competitive landscape. On the call they vouched how yes, they import, you know, roughly 20% of their goods from China when it comes to the Macy's brands. But they also said, hey, we work with a lot of key brands, for example, not specifically, but say Ralph Lauren and Coach, and they take on the cost to import these goods. So some leeway there, but it really remains to be seen how they will adjust prices, maybe adjust their assortment in this environment as they make way through the year.