The selloff is a bit of a head scratcher, but it could be an opportunity for investors.
posted strong second quarter results on Wednesday that beat Wall Street estimates, yet the stock was tanking, down about 8%.
In many respects, it was a blowout quarter for the discount retailer. Is this a buying opportunity for investors? Let’s look at the numbers.
- Revenue increased 12% in the quarter to $4.57 billion, which beat estimates of $4.48 billion.
- Same store sales jumped 6.5% year-over-year, with traffic up 3.0% and ticket (customer spend per visit) up 3.4%.
- Net income skyrocketed 42% to $188.4 million, while earnings rose 46% to 91 cents per share.
- Adjusted earnings, excluding discontinued operations, increased 13% to 77 cents per share. That crushed estimates of 42 cents per share.
In addition, it opened 106 new stores and converted 585 stores to its new multi-price format, where…
