FINANCE

A tough February couldn't keep Tilly's down, which reported better-than-expected results for its first quarter.    The teen apparel and footwear retailer narrowed its loss in the first quarter to $161,000, or 1 cent a share, compared with a net loss of $2.7 million, or 10 cents a share, in the year-ago period. Its results were better than expected.    Net sales inched up 0.6% to $120.9 million, better easily beating the Street. Same-store sales rose 0.6%.  

Williams-Sonoma Inc. on Wednesday reported better-than-expected quarterly results, fueled by a strong performance at its millennial-targeted West Elm division.    The home furnishings retailer's first-quarter earnings were $39.6 million, or 45 cents a share, compared with $39.6 million, or 44 cents a share, in the year-ago period. On an adjusted basis, the company earned 51 cents a share. Analysts had forecast earnings of 49 cents a share.   

Even with a double-digit sales increase, Lowe's Companies still managed to disappoint analysts with first quarter profit and comparable sales that missed their estimates.   Sales rose 10.7% to $16.9 billion, up from $15.2 billion in 2016. Same-store sales rose 1.9%, below the 2.6% increase expected by analysts polled by Consensus Metrix.  

Twenty retail executives traveled to the nation's capitol on Wednesday to voice their opposition to the proposed border adjustment tax (BAT).   

Although overall sales at Lowe's increased by double digits, the somewhat softer comparable numbers and the decline in net income have taken a little of the shine off first quarter performance.  

Advance Auto Parks turned in a disappointing performance in its first quarter.   The chain reported earnings of $1.46 per share, down from $2.16 per share in the year-ago period. Adjusted EPS was $1.60, far short of the $2.16 per share FactSet consensus.   

The proposed border adjustment tax would have a negative financial impact on retailers and consumers, as well.    Retailers would “have no choice” but to pass the higher costs on to consumers if Congress passes a proposed $1 trillion border adjustment tax as part of tax reform, the National Retail Federation warned on Tuesday.  

A current retail CEO and a former one found themselves at odds on Tuesday at a Capitol Hill hearing on the proposed border adjustment tax.    “Under the new border adjustment tax, American families – your constituents – would pay more so many multinational corporations can pay even less,” said Target CEO Brian Cornell. “Eighty-five percent of Americans shop at Target every year. We believe this new tax would hit those families hard, raising prices on everyday essentials by up to 20%.”