The airline sector was under pressure after a “profit warning” from American Airlines (-4.1%), which comes a week after that of Delta Air Lines (+0.5%). The Fort Worth-based company is only banking on annual earnings per share of $4.40 to $4.60, compared to a previous range of $4.50 to $5. The carrier, which reports lower domestic tariffs than expected, also anticipates an increase in its unit income limited to 1.5% in the fourth quarter, against an increase of between 1.5% and 3.5% previously.
Among other airlines, Delta Air Lines grew by 0.5%, United Continental Holdings lost 2.8%, JetBlue Airways dropped 0.46%, Southwest Airlines fell 0.12% but Alaska Air Group has gained 1.9%.
Kohl’s lost around 5% after it recorded holiday season sales (November and December) up 1.2%. Over the year, the group now targets earnings per share of between $5.50 and $5.55, compared with a previous range of $5.35 to $5.55. Fourth quarter results will be released on March 5th.
Macy’s lost over 17% after news that its holiday season sales (November and December) were up 1.1%. Over the year, the group now targets a profit per share of between $3.95 and $4, against a previous range of $4.10 to $4.30, and $4.23 consensus. Comparable sales are expected to increase by 2%, compared to a previous range of 2.3 to 2.5%.
L Brands fell after recording sales of $ 2.48 billion at the end of the year (five-week period ending January 5, 2019), compared with $2.52 billion a year earlier. On a same-store basis, sales are stable. In the fourth quarter, the group is now targeting earnings per share close to the high end of the previously unveiled forecast range, which ranged from $1.90 to $2.10.
Target announced that its holiday season sales (November and December) are up 5.7% year-over-year. The group is still looking for comparable sales growth of about 5% in the fourth quarter, and earnings per share of between $5.30 and $5.50 for the year. Target announces the scheduled departure of Cathy Smith (CFO). No successor has yet been appointed.