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Motley Fool Hidden Gems Investing

Big Retail, Big Deals, and 1 Big IPO

Motley Fool Hidden Gems Investing

The Motley Fool

Investing, Business

4.33.1K Ratings

🗓️ 21 May 2021

⏱️ 39 minutes

🧾️ Download transcript

Summary

Target and Walmart rise on strong sales growth. Home Depot and Lowe’s slide. Bitcoin tumbles during a volatile week. AT&T’s WarnerMedia merges with Discovery to make a new entertainment juggernaut. Twilio and Snap rise after each makes a big acquisition. Oatly surges in its Wall Street debut. And Pringles and Wendy’s team up to create a spicy chicken sandwich-flavored chip. Motley Fool analysts Andy Cross and Jason Moser discuss those stories and share two stocks on their radar: Autodesk and Qualcomm. Plus, Motley Fool analyst Maria Gallagher talks with Beyond Capital Co-Founder and CEO Eva Yazhar, author of The Good Your Money Can Do: Becoming a Conscious Investor.  Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Everybody needs money. That's why they call it money.

0:07.0

From full global headquarters, this is Motley Fool Money. It's the Motley Fool Money

0:20.1

radio show. I'm Chris Hill joining me this week Senior Analyst, Chase and Moser and Andy

0:24.3

Cross. Good to see you as always, gentlemen. Hey, hey. We've got the latest headlines from

0:28.7

Wall Street. We'll talk Impact Investing with CEO Eva Yazhari. As always, we've got

0:33.9

a couple of stocks on our radar. But we begin with a big week for retail. Shares of target

0:39.9

hit a new all-time high this week after first quarter profits and revenue came in higher

0:43.9

than expected. Same store sales rose 23% Andy. This was a fantastic quarter.

0:51.3

Yeah, it really was, Chris. That comp growth you mentioned, comparable sales of 23% was

0:57.2

versus about a 12% estimate and versus 11% for the prior year. It was the fourth consecutive

1:04.3

quarter of 20% or more on the comparable growth. That's looking at stores that were open

1:09.3

a year ago and how those stores performed. They sell 17% growth in traffic and 5% growth

1:15.1

in the average ticket size in store comp. Just for getting about digital, Chris, which is

1:19.8

also doing great. But just the in store was they have up 18% and almost all of that was

1:24.6

from foot traffic. So we get more and more people coming into the target stores as you expected.

1:29.4

But digital comp growth was up 50%, which is an impressive number. But that's all of growth

1:34.8

of last year of 141%. So their EPS, their earnings per share just exploded up 500% to $3.69

1:43.2

or $3.69 versus a $2.25 estimate. So all around, target continues to deliver the vaccine

1:53.1

rollouts. The stores opening continue to drive more and more growth. The apparel business

1:59.5

is really a bright spot. That was up in the quarter of 60% of those sales. The comparable

2:04.1

store sales were up 60% in apparel alone. Same door, same day services is now half of the

2:11.8

digital sales. So continuing to all the innovations that they've made over the last couple years

...

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