A leading discount retailer is dipping due to modest same-store sales growth, a big-box retail chain just slashed its annual forecast, and a vertical farming firm is surging 85% after entering the sports nutrition market. Here’s what’s moving the market this morning.

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What to Watch

Earnings:

  • Snowflake Inc. [SNOW]: Aftermarket

  • Zoom Communications Inc. [ZM]: Aftermarket

Economic Reports:

  • Richmond Fed President Tom Barkin & Fed Governor Michelle Bowman Fed Listens event: 12:15 pm

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Discount Retail

TJX Shares Dip Despite Beating Q1 Revenue and Profit Estimates

TJX Companies (NYSE: TJX) posted stronger-than-expected fiscal first-quarter earnings on Wednesday, but its stock is down 1.69% in premarket trading as same-store sales were narrowly below Wall Street projections.

The parent company of T.J. Maxx and Marshalls reported net income of $1.04 billion, or $0.92 per share, slightly above analyst expectations of $0.90 per share. Revenue climbed 5% year-over-year to $13.11 billion, surpassing forecasts of $13.02 billion.

Despite the earnings and revenue beat, comparable-store sales grew only 3%, which is just shy of consensus estimates.

Year-over-year, the company's profit was nearly flat, dipping marginally from $1.07 billion, or $0.93 per share, in the same quarter last year. While TJX has benefited from value-seeking consumers amid economic uncertainty, modest same-store sales growth may have signaled caution to the market.

The retailer reaffirmed its full-year guidance, projecting earnings per share in the range of $4.34 to $4.43.

Home Improvement

Lowe’s Beats Profit Expectations Despite Housing Market Drag

Lowe’s (NYSE: LOW) shares are up nearly 1.6% in premarket trading today after the home improvement retailer reported better-than-expected earnings, outshining rival Home Depot’s mixed performance earlier this week.

For the first quarter, Lowe’s posted revenue of $20.93 billion, matching analyst expectations, while adjusted earnings per share came in at $2.92, ahead of the $2.88 forecast.

Same-store sales declined 1.7%, a narrower drop than the expected 2.04% and a sign of stabilization following years of post-pandemic volatility.

CEO Marvin Ellison credits the performance to continued investment in digital tools and store enhancements, despite facing "housing market headwinds" and uncertain weather conditions earlier in the quarter. Growth in both Pro and online segments helped offset the slowdown.

The company reaffirmed its full-year 2025 guidance, projecting sales between $83.5 billion and $84.5 billion and same-store sales growth flat to up 1%.

However, concerns over tariffs continue to cloud the sector. With roughly 20% of its product sourcing tied to China, Lowe’s may face more pressure than Home Depot (NYSE: HD), which relies more heavily on U.S.-made goods and its larger Pro customer base.

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Retail

Target Slashes Forecast as Shoppers Cut Back on Discretionary Spending

Target (NYSE: TGT) trimmed its annual outlook today after reporting a sharper-than-expected drop in first-quarter same-store sales, as economic uncertainty and rising tariffs continued to strain consumer spending.

Comparable sales declined 3.8% in the quarter, missing analyst expectations of a 1.08% dip. Adjusted earnings landed at $1.30 per share, well below the consensus estimate of $1.61.

The retailer now projects full-year earnings between $7.00 and $9.00 per share, down from its prior forecast of $8.80 to $9.80. It also expects overall annual sales to fall in the low single digits, reversing earlier projections for modest growth.

Unlike Walmart (NYSE: WMT), which has more exposure to essential grocery sales, Target’s business leans heavily on discretionary goods like apparel, home décor, and beauty products—many of which are sourced from China.

With approximately 30% of its inventory still tied to Chinese imports, Target faces pressure from newly reinstated tariffs.

As per CEO Brian Cornell, the company is working to reduce dependency on China by diversifying suppliers and increasing domestic sourcing. Despite the efforts, investors remain cautious.

Target stock is down 3% in premarket today and nearly 28% this year, significantly underperforming Walmart’s 9% gain.

Movers and Shakers

Edible Garden AG Incorporated [EDBL] - Last Close: $3.60

Edible Garden AG Inc. is a controlled environment agriculture company. The firm has seen steady revenue growth, and though it has had recent issues with its profitability, the stock has risen nearly 90% in the last month.

Today’s 85% uptick in its premarket stock price is due to the successful launch of its new "Kick. Sports Nutrition" product line on Amazon, marking the company's expansion into the sports nutrition market.

My Take: The move into the sports nutrition sector is a strong opportunity for potential growth. However, profitability remains a concern. Keep a close watch on where this new product leads EDBL.

CFSB Bancorp, Inc. [CFSB] - Last Close: $8.19

CFSB Bancorp Inc. is a bank holding company offering retail and commercial banking services. The company has maintained stable financials, though it did have negative net margins in Q2’25.

The stock is up 68% in premarket trading because the firm is being acquired by Hometown Financial Group at a 74% premium over the previous close.

My Take: The acquisition is a good opportunity for the shareholders, offering a significant premium and suggesting confidence in CFSB's value. Keep a close watch on how the acquisition proceeds.

Kindly MD, Inc. [KDLY] - Last Close: $15.22

Kindly MD Inc. is a healthcare services provider. The company has faced financial challenges, with a net income of -$2.2 million in 2024 and an EPS of -$0.67.

However, the stock is rising 15% in premarket trading today and nearly 800% in the last month, due to its proposed merger with Nakamoto Holdings, which got approved by shareholders today.

My Take: Its an interesting merger of healthcare and cryptocurrency, potentially offering diversified revenue streams. Keep an eye out for volatility on this stock.

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Everything Else

That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.

Best Regards,

— Adam Garcia
Elite Trade Club

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