The four Retail Corps which should surpass the $100 mil profit target, but which are not included below because they haven't yet reported their calendar 3Q 2012 earnings, are Publix Super Markets, Starbucks, Whole Foods Market, and Sally Beauty Holdings.
These 38 US Retail Corps had Total Pretax Income in the 3Q 2012 of $21,636 mil, up a very solid 6.4%, from the 3Q 2011, which is pretty impressive in these pretty tough economic times in the US, and extremely tough economic times in Europe.
Walmart dominates these 38 US Big Retailers, comprising 29% of 3Q 2012 Total Pretax Income of all 38. Walmart had a strong 3Q 2012, with Pretax Earnings growth of 7% over the prior year's quarter.
As you can see from the below list, many of these US Retailers had outstanding earnings growth in the 3Q 2012 over the prior year's quarter.
And the quality of this total 6.4% earnings growth in the 3Q 2012 is high.
Amazon's reported earnings declined by $152 mil in the 3Q 2012, but that is really misleading in real earnings' terms. Amazon's Net Sales increased 27% in the 3Q 2012, but its reported Pretax Earnings were substantially softened by its many huge investments it is making, which will benefit Amazon to a great extent in the future, but which also get reflected in earnings as charges under US Generally Accepted Accounting Principles. For instance, Amazon's Technology and Content Expense in the 3Q 2012 was $423 mil higher, or 55% above, the prior year's quarter.
Nordstrom's 3Q 2012 earnings decline is due to the timing of its Anniversary Sale.
Extreme weakness in the European economy, coupled with a weaker Euro, hindered the US Big Retailers with a large presence there like McDonalds.
And given the very high quality of each of the four US Retailers that haven't reported their earnings yet, my hunch is that this 6.4% earnings growth will increase by a bit after they report their 3Q 2012 earnings.
Further, it should also be pointed out that the Total 3Q 2012 Earnings Per Share growth of these 38 Big US Retailers is a bit higher than this 6.4% Total Pretax Earnings growth. This is due to many of these large US Retailers having substantial stock buyback programs.
For instance, the GAP's Pretax Earnings increase of a very impressive 29% in the most recent quarter turns into an even much more impressive 40% increase on an Earnings Per Share basis. No, I'm not kidding. This is what the GAP's massive stock buyback program does. And Walmart's After-tax Net Income growth of 5.7% turns into an 8.3% Earnings Per Share growth, again due to its huge stock buybacks.
Can you imagine what the earnings growth of these US Retailers would be if you had a US Congress that worked with the President, rather than one that has intentionally stymied US economic growth and US job creation until after the November 2012 election.....a heartless, mean-spirited Party over suffering People strategy, from my perspective.
And particularly because all of the Republicans in both the US House and the US Senate have voted against the 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 in the critically key Thanksgiving to Christmas 2012 sales period.
Below is the Ongoing, Core Pretax Income (PTI) or Pretax Loss (PTL) of these 38 Big US Retailers for both the 3Q 2012 and the 3Q 2011.
| Increase | Increase | ||||
| State | PTI(L) | PTI(L) | (Decrease) | (Decrease) | |
| HQs | 3Q 2012 | 3Q 2011 | Amount | % | |
| mils $s | mils $s | mils $s | |||
| Big Retail Corps | |||||
| Walmart | AR | 6,193 | 5,805 | 388 | 7% |
| Home Depot | GA | 2,418 | 2,148 | 270 | 13% |
| McDonalds | IL | 2,154 | 2,263 | (109) | -5% |
| Lowes | NC | 1,197 | 1,329 | (132) | -10% |
| Target | MN | 1,071 | 1,109 | (38) | -3% |
| Costco | WA | 965 | 772 | 193 | 25% |
| TJX | MA | 683 | 559 | 124 | 22% |
| Yum Brands | KY | 639 | 456 | 183 | 40% |
| Autozone | TN | 502 | 470 | 32 | 7% |
| Macy's | OH | 449 | 395 | 54 | 14% |
| Kroger | OH | 429 | 391 | 38 | 10% |
| GAP | CA | 405 | 313 | 92 | 29% |
| Kohls | WI | 377 | 475 | (98) | -21% |
| Bed Bath & Beyond | NJ | 365 | 370 | (5) | -1% |
| Sherwin Williams | OH | 343 | 260 | 83 | 32% |
| Dollar General | TN | 325 | 231 | 94 | 41% |
| Ross Stores | CA | 297 | 242 | 55 | 23% |
| OReilly Automotive | MO | 254 | 235 | 19 | 8% |
| Nordstrom | WA | 250 | 290 | (40) | -14% |
| Limited Brands | OH | 229 | 242 | (13) | -5% |
| Dollar Tree | VA | 183 | 152 | 31 | 20% |
| CarMax | VA | 181 | 180 | 1 | 1% |
| Staples | MA | 178 | 237 | (59) | -25% |
| Fastenal | MN | 176 | 155 | 21 | 14% |
| Advance Auto Parts | VA | 161 | 181 | (20) | -11% |
| Safeway | CA | 158 | 196 | (38) | -19% |
| Darden Restaurants | FL | 146 | 147 | (1) | -1% |
| Tiffany | NY | 140 | 131 | 9 | 7% |
| Autonation | FL | 133 | 116 | 17 | 15% |
| Dick's Sporting Goods | PA | 133 | 108 | 25 | 23% |
| Family Dollar Stores | NC | 127 | 125 | 2 | 2% |
| Petsmart | AZ | 123 | 96 | 27 | 28% |
| JC Penney | TX | 118 | 47 | 71 | 151% |
| Chipotle Mexican Grill | CO | 118 | 98 | 20 | 20% |
| Best Buy | MN | 100 | 235 | (135) | -57% |
| Supervalu | MN | 96 | (108) | 204 | 189% |
| Amazon | WA | (22) | 130 | (152) | -117% |
| Sears Holding | IL | (158) | (247) | 89 | 36% |
| Total all 38 | 21,636 | 20,334 | 1,302 | 6.4% |
