FINANCE

The National Retail Federation continues to lead the charge against the consumption tax and the proposed border adjustment tax.   The NRF on Thursday today urged Congress to focus on updating the existing federal income tax system rather than moving toward a consumption tax. Under either approach, Congress should reject a proposed $1 trillion border adjustment tax that would drive up prices for consumers and cost the economy jobs, NRF said.  

Gap Inc.’s reported a 12% jump in first quarter profit amid another strong performance from its Old Navy division.    Net income rose to $143 million, or 36 cents per share, in the quarter ended April 29, from $127 million, or 32 cents per share, a year earlier. Its results easily beat the Street, which had predicted earnings of 29 cents per share.   

Expansion-minded Ross Stores turned in a solid performance in its first quarter amid what its CEO called “uncertainty and volatility” in the retail environment.    The off-price retailer, which is opening some 80 to 90 stores annually, reported earnings per share for the quarter ended April 29, 2017 of $.82, up from $.73 in the year-ago period. Net earnings grew to $321 million, compared to $291 million in the prior year.   

Target Corp.’s efforts to turnaround its business appear to be taking hold — at least based on its better-than-expected first quarter performance.     The discounter broke through the gloom that has characterized many other retailers’ first quarter results with earnings and sales that beat the Street and its own expectations. The company also gave a brighter outlook for the full year.   

American Eagle Outfitters’ profit shrunk in the first quarter amid charges and discounting.  

A month after it announced it would close 400 stores, the other shoe has dropped at Rue 21.   The Warrendale, Pennsylvania-based retailer announced it has filed for Chapter 11 bankruptcy protection and entered into agreements with some of its lenders to reduce the company's debt and provide additional capital in support of its restructuring. The company, which expects to continue normal business operations throughout the process, listed its assets and liabilities in the range of $1 billion and $10 billion, according to its court filing.

The world’s largest home improvement retailer raised its earnings expectations as it announced first quarter sales and earnings gains that beat the Street.   Net earnings for the first quarter of fiscal 2017 were $2.0 billion, better than expected, compared with net earnings of $1.8 billion, in the same quarter last year. For the first quarter of fiscal 2017, diluted earnings per share increased 16.0% from the same period in the prior year.  

The TJX Companies had a rare sales miss in its first quarter, and gave second quarter guidance below expectations.    Net sales for the first quarter, ended April 29, increased 3% to $7.8 billion. Analysts had expected $7.88 billion. Consolidated same-store sales increased 1% over last year’s 7% increase, just missing analyst’ estimates.   

Staples reported mixed results for its first quarter as earnings came in line with expectations but its revenue fell short.    The office supplies retailer reported adjusted earnings of 17 cents a share, in line with Wall Street forecasts. Total sales fell 5% to $4.1 billion, short of analysts’ expectations. Total company same-store sales fell 3%, beating estimates.   

Dick’s Sporting Goods came up short on same-store sales growth in its first quarter amid what the company called “a challenging retail environment.”