A tough holiday outlook weighed heavily on shares of Best Buy today. The electronics retailer warned that competitive holiday promotions could hurt its fourth quarter margins. The chain reported a return to profit in the third quarter and beat Wall Street’s estimates, but investors couldn’t look past the weak outlook. The stock had its worst day of the year, down 11% to $38.78.
TJ Maxx and Marshalls owner TJX said its holiday season is off to a good start. The discount retailer saw a 35% increase in earnings driven by same-store sales growth. A more value-conscious consumer helped the company beat Wall Street’s estimates. Share rose 1% to $63.12.
Dick’s Sporting Goods
Weak consumer demand weighed on Dick’s Sporting Goods’ profit. The sporting supplies chain saw better-than expected sales, but profit came in flat because the company had to cut prices and spend more money on marketing. The results beat estimates slightly. Shares fell a fraction to $56.14.
An improving heart-device market helped boost Medtronic’s sales. The medical device maker said earnings beat estimates as its business units performed in-line or better than the overall market. Shares were down slightly to $57.94.
Starboard Value LP cut its stake in Office Depot, sending shares of the chain down. According to an SEC filing the activist fund reduced its original position of 14.6% to 7.9%. Starboards smaller position sent Office Depot down 3 percent to $5.23.
United Continental Airlines announced today that it plans to cut costs by $2 billion a year by 2017. No furloughs have been reported yet as part of the cost-cutting plan. United’s CEO says the company aims to burn less fuel, increase productivity and raise revenue. Shares popped almost 4% to $37.80.