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Earnings Reports & Company Outlooks

Target is getting taken to the woodshed by Walmart. It badly missed on first quarter earnings and reduced its guidance for the year.
Peloton Interactive reported that revenues fell 13% in the latest quarter. It also saw subscriber numbers drop. It’s a tough and ordinary business now that COVID is gone. The CEO put the best possible spin he could on the numbers. Here he says, “Although revenue continued to fall at the fitness company, CEO Peter Stern maintained that Peloton ‘performed at the high end of or above guidance on our key metrics.’” Magic with words. The stock is down 23% YTD.
RH is down 47% YTD and getting beat up in the financial press. StockStory in calling it a stock to avoid says this:
- “Why Is RH Not Exciting?”
  - Disappointing same-store sales over the past two years show customers aren’t responding well to its product selection and store experience.
  - Earnings per share fell by 14.5% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable.
  - Limited cash reserves may force the company to seek unfavorable financing terms that could dilute shareholders.