Two B. Riley Analysts Just Commented On These Three Retailers

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Heading in to peak earnings season for retailers, Scott Tilghman and Jeff Van Sinderen of B. Riley offered a quick take on three retailers:
Staples, Inc.SPLS
,
American Eagle OutfittersAEO
and
Best Buy Co IncBBY
.
Staples: Pending Acquisition To Limit Share Price Volatility
Staples is scheduled to report its first quarter results Wednesday before market open. Scott Tilghman is projecting Staples' revenue to fall four percent from a year ago as a few elements could pressure top-line, but mid-point expectations and margin opportunities could lead to earnings meeting forecasts. Looking forward, ongoing cost containment efforts and benefits from store closures offer near and mid-term margin benefits. In addition, the company's pending acquisition of
Office Depot Inc
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could limit share price volatility for most Q1 scenarios. Shares remain Neutral rated with an unchanged $14 price target.
American Eagle: Don't Expect A ‘Blowout' Quarter
American Eagle is scheduled to report its first quarter results Wednesday before market open. Jeff Van Sinderen noted that the inherent port and traffic headwinds that were seen across the entire apparel space will prevent American Eagle from reporting "blowout" metrics. Nevertheless, the analyst is expecting the company to report an improved quarter versus a year ago due to improved merchandise assortment and less aggressive discounting and promotions.
Best Buy: Gross Margins To Improve, FX A Revenue Headwind
Best Buy is scheduled to report its first quarter results on Thursday before market open. Tilghman is expecting Best Buy to report improvements in gross margins, but offset by SG&A due to planned investments. In addition, revenue will likely decline year over year due to foreign exchange and international headwinds. The analyst suggested that Best Buy's guidance "will still be key" but isn't expecting much change. Shares remain Buy rated with a $47 price target.
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Posted In: Analyst ColorAnalyst RatingsB RileyJeff Van SinderenOffice Depot IncScott TilghmanTeen Retailers
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