Retail Stocks Sink As LOW’s Forecast Misses Estimates

Retail stocks plunged today after America’s second largest US home-improvement retailer, Lowe's Companies Inc LOW, announced a Q2 profit forecast that fell short of the Street view. LOW is the third retailer after JC Penney Company JCP and Kohl's Corp KSS to give cautious projections even after recording profit gains. The company’s Q2 profit outlook is at $0.57-$0.59 a share, while analyst estimates stand at $0.61 a share. By 10:27 am, LOW had lost 4.87% to $24.80. JCP gained 0.65% to $27.72, while KSS upped 0.19% to $53.55. The Mooresville, North Carolina based company reported a better-than-expected Q1 profit, which rose 2.7% after demand for kitchen cabinets and other bigger-ticket items led to its first comparable sales increase in more than three years. LOW’s largest rival Home Depot Inc HD is releasing its earnings report on Tuesday. HD’s stock tumbled 2.13% to $36.44 by 10:44 am. Meanwhile, Wal-Mart Stores Inc WMT which also reports Tuesday, gained 0.81% to $52.54. Sears Holdings Corp SHLD said that its namesake chain and Kmart stores will buy gold jewelry from consumers. Its shares climbed 0.18% to $108.53. Read more from Benzinga's Markets.