NEW YORK (TheStreet) -- Retail is in the earnings spotlight this week, and TheStreet's Debra Borchardt is with Laurie Kulikowski taking a look at some recent results and what to expect when another big company reports tomorrow.
The company even beat its own lofty guidance, which management had increased in October.
Kulikowski said the company should do great during the holiday season, because customers love shopping at its TJ Maxx and HomeGoods stores. She also noted that management again raised its forward guidance.However, Best Buy (BBY) was unable to thrill investors with its earnings. Although Best Buy posted a profit this quarter, compared to a small loss in the same quarter last year, promotions are likely to squeeze margins during the holiday season, she added. Kulikowski suggested promotions will be the common theme in the retail space. Specifically, investors will want to know how promotions affect margins amid increased competition. Turning to J.C. Penney (JCP), the retailer will report earnings on Wednesday before the open. Kulikowski reminded investors in a recent article that J.C. Penney just reported its first positive monthly comparable-store sales result in roughly two years last month. And while analysts are expecting losses for the quarter, she concluded that margins would again be the focus as investors ask what the price was for positive sales growth.
-- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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