Overview
- The retailer posted diluted EPS of $31.04 versus the $32.71 consensus, with revenue at $4.6 billion and same-store sales up 5.5% versus 5.6% expected.
- The stock slid nearly 7% on Tuesday following the results.
- Management cited tariffs for the profit shortfall, while inflation and higher input costs pressured results.
- Gross margin contracted by roughly 200 basis points, and operating expenses rose to about 34% of sales.
- Buybacks slowed, though $1.7 billion remains authorized, and the company added 53 net new stores to reach 7,710 locations including continued expansion in Mexico and Brazil.