The one large Retail Corp excluded is Publix Super Markets, which hasn't released its 2Q 2012 earnings yet.
These 35 US Retail Corps had Total Pretax Income in the 2Q 2012 of $19,193 mil, up $1,039 mil, or up 6%, from the 2Q 2011, which is pretty impressive in these pretty tough economic times in the US, and extremely tough economic times in Europe.
But you need to break down these Corps to get a better handle on what is happening in Retailing.
In the 2Q 2012, the Total Pretax Income increase of these 35 US Big Retailers was $1,039 mil over the 2Q 2011. And in the 1Q 2012, this increase was only $205 mil. Thus, the improvement in the 2Q 2012 over the 1Q 2011 is the difference, or $834 mil.
Amazingly, $785 mil of this improvement, or a massive 94%, is due to one Retailer...Sears Holding...which went from a 1Q 2012 Pretax Income decline of $674 mil to a 2Q 2012 earnings improvement of $111 mil. Its April 2012 quarter sales comparable declines were much less pronounced than those experienced in the January 2012 quarter.
Walmart dominates these 35 US Big Retailers, comprising over 30% of 2Q 2012 Total Pretax Income of all 35. Walmart had a very strong 2Q 2012, with Pretax Earnings growth of 9% over the prior year's quarter, and an acceleration from the 5% Pretax Earnings growth in the 1Q 2012 over the 1Q 2011.
So, what happened with the Remaining 33 US Big Retailers? Well, their Total Pretax Income growth of 3% in the 1Q 2012 over the 1Q 2011 remained precisely constant in the 2Q 2012 over the 2Q 2011.
Extreme weakness in the European economy, coupled with a weaker Euro, hindered the US Big Retailers with a large presence there like McDonalds.
And JC Penney and Best Buy both had down quarters.
The stick-out winners of these Remaining 33 Retailers were the ones in Home Improvement.....Home Depot, Sherwin Williams, and Lowes...and also TJX, Dollar General, Macy's, Ross Stores, Starbucks and Costco.
It should also be pointed out that the 2Q 2012 Earnings Per Share growth of these 35 Big US Retailers is a bit higher than this 6% Total Pretax Earnings growth. This is due to many of these large US Retailers having substantial stock buyback programs.
For instance, the GAP had a 2% Pretax Earnings decline in the 2Q 2012, which was a substantial improvement from its 41% earnings decline in the 1Q 2012. The GAP's Pretax Earnings decline of 2% in the most recent quarter changes dramatically to an 18% increase on an Earnings Per Share basis. No, I'm not kidding. This is what the GAP's massive stock buyback program does.
Still, the US economy is in severe need of an upward jolt. But no matter what they say publicly, it is clear that the Republicans in the US House and US Senate are determined to prevent any US economic lift until after the November 2012 election.....a clearly heartless, mean-spirited Party over suffering People strategy.
And if the Republicans in the US House either vote down, or don't permit a vote on, the US Senate recently passed tax cuts for everyone, starting on January 1, 2013, on the first $250,000 of everyone's taxable income, US Retailers will be hurt markedly by the resultant high level of consumer uncertainty, particularly in the critically key Thanksgiving to Christmas sales period.
Below is the Pretax Income and Pretax Loss of these 35 Big US Retailers for both the 2Q 2012 and the 2Q 2011.
| Increase | Increase | |||
| PTI | PTI | (Decrease) | (Decrease) | |
| 2Q 2012 | 2Q 2011 | Amount | % | |
| mils $s | mils $s | mils $s | ||
| Walmart | 5,852 | 5,378 | 474 | 9% |
| Sears Holding | (134) | (245) | 111 | 45% |
| The Remaining 33 | ||||
| McDonalds | 2,010 | 2,066 | (56) | -3% |
| Home Depot | 1,630 | 1,283 | 347 | 27% |
| Target | 1,101 | 1,081 | 20 | 2% |
| Lowes | 850 | 740 | 110 | 15% |
| TJX | 681 | 499 | 182 | 36% |
| Kroger | 673 | 673 | 0 | 0% |
| Costco | 622 | 534 | 88 | 16% |
| Starbucks | 492 | 410 | 82 | 20% |
| Yum Brands | 435 | 384 | 51 | 13% |
| Autozone | 388 | 353 | 35 | 10% |
| GAP | 373 | 381 | (8) | -2% |
| Dollar General | 346 | 267 | 79 | 30% |
| Ross Stores | 338 | 282 | 56 | 20% |
| Sherwin Williams | 328 | 257 | 71 | 28% |
| Bed Bath & Beyond | 312 | 290 | 22 | 8% |
| Macy's | 279 | 214 | 65 | 30% |
| Staples | 277 | 302 | (25) | -8% |
| Nordstrom | 240 | 241 | (1) | 0% |
| Kohls | 239 | 315 | (76) | -24% |
| Best Buy | 235 | 449 | (214) | -48% |
| OReilly Automotive | 235 | 217 | 18 | 8% |
| Advance Auto Parts | 215 | 176 | 39 | 22% |
| Limited Brands | 213 | 213 | 0 | 0% |
| Darden Restaurants | 201 | 186 | 15 | 8% |
| CarMax | 196 | 203 | (7) | -3% |
| Family Dollar Stores | 194 | 178 | 16 | 9% |
| Dollar Tree | 189 | 162 | 27 | 17% |
| Safeway | 178 | 219 | (41) | -19% |
| Amazon | 146 | 225 | (79) | -35% |
| Tiffany | 124 | 126 | (2) | -2% |
| GameStop | 115 | 125 | (10) | -8% |
| Toys R Us | (98) | (133) | 35 | 26% |
| JC Penney | (282) | 103 | (385) | -374% |
| Total all 33 Remaining | 13,475 | 13,021 | 454 | 3% |
| Total all 35 | 19,193 | 18,154 | 1,039 | 6% |
