Ulta Beauty reported strong quarterly results as customers return to work and start to participate in events and activities. The retailer lifted its full-year sales and earnings growth outlook.

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Gap Inc said quarterly sales were marred by falling demand at its namesake brand and management challenges at Old Navy. Banana Republic sales surged 24%. The company plans to close 350 stores in North America.

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Stocks on Wall Street advanced after the release of personal income and consumption data. Retailers were in focus after American Eagle Outfitters, Big Lots, and Hibbett results disappointed investors. Costco same stores sales showed consumer strength.

Costco Wholesale Corp said U.S. comparable sales in the first quarter rose 10.7% excluding fuel sales and reported first quarterly revenues in excess of $50 billion. Membership revenues surged 9% approaching $1 billion.

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U.S. market indexes advanced after retailers reported stronger than expected results at the top and bottom end of the consumption. Macy's, Williams-Sonoma, Dollar General and Dollar Tree results reassured investors.

Dollar General's quarterly earnings declined as the company and its customers battled inflation and customers limit purchases to basic items. The deep discount retailer lifted annual sales growth outlook.

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Williams Sonoma quarterly sales slowed but still ahead of expectations. Pottery Barn comparable sales increased 15% on top of 41% increase in the quarter a year ago.

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U.S. stocks climbed higher after first-quarter GDP projection was revised to a larger decline and initial jobless claims fell. Dollar General and Macy's results lifted market sentiment. Tech stocks advanced after Broadcom agreed to acquire VMWare for $61 billion.

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S&P 500 Rebounds 1% After Fed Minutes

May 25, 2022
Barry Adams
U.S. stocks jumped after the Fed minutes of meeting showed policy members are willing and ready to lift rates higher at the next meetings if necessary. The strong commitment to quell inflation bolstered the market sentiment.

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Urban Outfitters net income in the quarter plunged on higher raw materials and freight costs and longer lead times contributed to a surge in inventories.

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Toll Brothers quarterly sales rose 19% and net income soared 73%. Home backlog value jumped 35% to $11.7 billion average home price neared $900,000.

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Stocks traded lower and investors reacted to the latest batch of earnings and awaited details of the latest Fed policy meeting on May 4. Dick's Sporting Goods plunged 13% on cautious outlook.

Advance Auto Parts quarterly sales declined 1.3% and net income in the quarter fell 26%. The retailer guided full-year comp sales to increase between 1% and 3%.

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Stocks on Wall Street trimmed losses but tech-heavy Nasdaq dropped to a new low in the year. Snap Inc plunged 43% after issuing a profit warning. New home sales plunged 16% after buyers walked away from record home prices.

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AutoZone said comparable same store sales rose 2.6% in the quarter and on top of 28.9% a year ago. The parts retailer repurchased $900 million of its share in the quarter.

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