It is clearance season in the stock markets grocery aisle.
The weekend couldnt possibly arrive soon enough for owners of Kroger stock. On Thursday, the company lowered its full-year profit guidance for this year and warned of a looming price war in the industry. The company now expects fiscal year 2017 adjusted earnings per share in the range.
CarMax is hoping it can offset that financing challenge by making improvements to its customer shopping experience, which will keep traffic churning higher. Gross profit margin will be worth watching, too, since pricing pressures could mount if new car dealerships boost their promotions. Meanwhile, look for CarMax to continue an aggressive expansion plan that will see it add 15 new locations to its store base this year.
Finish Line’s profit margin
Finish Line shares are down sharply this year as its business struggles to find traction in a weak selling environment. The sports apparel and footwear retailer had an especially brutal end to its fiscal year, announcing in March that comparable-store sales fell by a surprising 4.5%.
Executives explained that competitors scaled up their promotions, and Finish Line was forced to follow suit, which sent profitability lower. “As elements of our footwear offering did not resonate with our customers as we expected and the overall retail environment in February became increasingly difficult,” CEO Sam Sato said in a press release, “we made the decision to get more aggressive on pricing to be competitive and clear slow moving product.”