Market Update
Retailers and Indexes Advance On Buoyant Consumers
Barry Adams
26 May, 2022
New York City
U.S. market indexes advanced after latest earnings from retailers showed consumers are still spending.
The S&P 500 index jumped 1.99% to 4,057.84 and the Nasdaq Composite index increased 2.7% to 11,740.65.
Investors regained confidence after Macy's said comparable sales were up 10.7% in the quarter ended on April 30.
High-end Bloomingdale's comparable sales rose even faster at 28.1% from a year ago.
Williams-Sonoma also reported strong quarterly sales and said comparable sales rose 9.5% in the latest quarter and jumped solid 50% on a two-year basis.
Pottery Barn and West Elms sales were ahead of expectations as well.
On the other end of the retail spectrum, Dollar General and Dollar Tree also showed higher consumer activities but most purchases were limited to basic items and consumables.
Investors in a sigh of relief stepped up and bid up retailers hoping the economy may avoid a sharp slowdown.
Stocks rebounded from oversold positions and the S&P 500 index trimmed the year's loss to 15.2% after dropping to nearly 20% on an intra-day basis last week.
The Nasdaq Composite also pared year's losses to 25.7% after sinking to nearly 29% decline last week.
The yield on 10-year Treasury notes edged up 2.75% and the GDP growth was revised lower to 1.5% from the previous estimate of 1.4% by the Bureau of Economic Analysis today.
Investors are still holding out for economic growth in the current quarter compared to a year ago despite the elevated energy prices and the end of stimulus payments in the previous year.
So far the labor market strength is keeping the consumption stable or in slight upward trend.
Initial jobless claims declined 8,000 to 210,000 and continuing claims stayed near the levels last seen in 1970.
Futures of crude oil price increased 3% to $113.93 a barrel and natural gas price decreased 2% to $8.78 per unit.
Costco Wholesale Corp jumped 5.7% to $465.71 ahead of the retailer's earnings after the close of regular trading hours.
Dollar General Lifted Sales Outlook Despite Inflationary Pressures
Scott Peters
26 May, 2022
New York City
Dollar General's earnings fell after the higher product costs and customers sticking to basic items impacted quarterly results.
Sales and earnings jumped after the company passed on higher prices more than inflation to customers.
The retailer reported net sales in the first quarter fiscal year 2022 ending on April 29 increased 4.2% to $8.8 billion and comparable sales decreased 0.1%.
In the period, consumables sales increased 9.1% to $6.9 billion, seasonal products sales fell 8.5% to $961 million, apparel sales plunged 28% to $289.6 million, and home products sales declined 5.5% to $539.8 million.
Net income in the quarter fell 18% to $552.65 million and diluted earnings per share fell to $2.41 from $2.82 a year ago.
Diluted earnings per share decreased 14.5% to $2.41.
Gross profit margin declined to 31.3% from 32.8% a year ago, operating margin fell to 8.5% from 10.8%, and net income margin fell to 6.3% from 8.1%.
Inventories at the end of the quarter increased to $6.1 billion from $5.1 billion a year ago, an increase of 13.3% on a per-store basis.
Cash flow from operations in the quarter declined to $449.5 million from $702.9 million.
During the quarter the company opened 239 new stores, remodeled 532 stores, and relocated 32 stores and capital expenditures were $282 million.
In the quarter, the company repurchased $747 million of its common stock, or 3.4 million shares, at an average price of $220.13 per share.
Under its share repurchase program at the end of the first quarter $1.4 billion were still available.
On May 25, 2022, the Board of Directors declared a quarterly cash dividend of $0.55 per share on the common stock, payable on or before July 19, 2022 to shareholders of record on July 5, 2022.
Guidance and Outlook
The company lifted its annual sales outlook to a range between 10% and 10.5% from the previous estimate of 10% including 2% benefit from the additional week in the current fiscal year.
Same store sales are expected to rise between 3% and 3.5% compared to the previous estimate of 2.5%.
Diluted earnings per share to increase between 12% and 14% and plans to repurchase $2.75 billion of its shares.
The company also reiterated its plans to execute 2,980 real estate projects in fiscal year 2022, including 1,110 new store openings, 1,750 remodels, and 120 store relocations.
In the quarter, the company executed 800 real estate projects.
Company and Stock
Dollar General, headquartered in Goodlettsville, Tennessee operates 18,356 stores with a total of 136.5 million retail square foot space.
In the quarter, the company increased retail space by 5.8% matching the rate a year ago.
Dollar General soared 17% to $228.82 after the deep discount retailer reported first quarter results.
For the year-so-far, Dollar General stock has declined 5.3%.
Williams Sonoma Comparable Sales Jump 9.5% and Soar 50% On Two-Year Basis
Scott Peters
26 May, 2022
New York City
Williams-Sonoma Inc, the specialty home and kitchen goods retailer, reported strong performance after Pottery Barn and West Elm sales sustained momentum.
Consolidated revenues in the first-quarter ending on May 1 rose 8% to $1.89 billion.
On a comparable basis, same store sales across all stores increased 9.5% from a year ago and surged 49.9% on a two-year basis.
Net income in the quarter rose 11.9% to $254.1 million and diluted earnings per share rose to $3.50 from $2.90 a year ago.
In the quarter, Pottery Barn sales jumped 14.1% to $775 million, West Elm sales increased 12.3% to $536 million, Williams Sonoma sales declined 5.2% to $252 million, and Pottery Barn Kids & Teen dropped 3.8% to $227 million.
Same stores sales increase in the quarter at Pottery Barn declined to 14.6% from 41.3% a year ago, at West Elm declined to 12,8% from 50.9%, at Williams Sonoma swung to negative 2.2% from 35.3%, and Pottery Barn Kids & Teen dropped to negative 3.1% from 27.6%.
During the quarter the retailer opened 3 new stores and closed 1 and ended the period with 545 stores.
In the quarter, the company repurchased $500 million of its shares and paid $58 million in dividends.
Guidance and Outlook
The retailer estimated fiscal year 2022 financial performance to be in line with its long-term financial guidance of mid-to-high single digit annual net revenue growth.
The company reiterated its long-term target of increasing revenues to $10 billion by fiscal year 2024, and operating margins relatively in-line with fiscal year 2021 operating margin between 13% and 14%.
Company and Stock
Williams-Sonoma Inc jumped 11.8% to $128.46 after the specialty home and kitchen goods retailer reported quarterly results.
In the year-so-far, Williams-Sonoma stock has declined 23.05%.
Movers: Broadcom, Dollar General, Dollar Tree, Nvidia, Nutanix, Williams-Sonoma
Barry Adams
26 May, 2022
New York City
Broadcom Inc announced a $61 billion deal to acquire VMWare, third largest tech deal ever.
Broadcom gained 0.9% to 536,29 and VMWare 0.2% to $120.87 and extended the 5-day gain to 26.4% when the deal was first reported in the media.
Separately, Broadcom reported sales in the fiscal 2022 second quarter ending on May 1 increased 23% to $8.1 billion and net income jumped 78% to $2.59 billion or $5.93 per share.
Dollar General soared 17% to $228.82 after the deep discount retailer reported first quarter net sales increased 4.2% to $8.8 billion and comparable sales decreased 0.1%.
Diluted earnings per share decreased 14.5% to $2.41.
Dollar Tree surged 17.4% to $156.82 after the deep discount chain said first-quarter consolidated sales increased 6.5% to $6.9 billion and comparable same store sales rose 4.4% across the company.
Net income increased 43.2% to $536.4 million in the first quarter and diluted earnings per share increased 48.1% to a first quarter company record $2.37, compared to $1.60 in the prior year
Weekly Jobless Claims Decrease 8,000 to 210,000
Brian Turner
26 May, 2022
New York City
Initial unemployment claims for the week ending on May 14 declined 8,000 to 210,000.
The jobless claims in the previous week were unrevised at 218,000.
The 4-week moving average was 206,750, an increase of 7,250 from the previous week's unrevised average of 199,500.
The Log term unemployed data was was revised higher by 31,000 to 1,346 million during the week ending May 14.
The previous week's level for long term unemployed was revised down by 2,000 from 1,317,000 to 1,315,000.
The 4-week moving average declined 14,250 from the previous week's revised data to 1,347,500.
This is the lowest level for this average since January 17, 1970 when it was 1,340,000.
U.S. First-quarter GDP Decline Revised Lower to 1.5%
Brian Turner
26 May, 2022
New York City
U.S. GDP growth in the first quarter ending in March was revised lower to 1.5% annual rate in the second estimate from the initial projection of 1.4% by the Bureau of Economic Analysis.
The rise in consumer spending was pulled down by weaker estimates of corporate inventories and residential investment and larger trade deficit also trimmed the projection.
The downward revision is the worst since the pandemic-impacted second quarter 2020 when the GDP declined at an annual pace of 31.2%.
Personal Consumption Expenditure, a measure of consumer spending, was revised higher to 3.1% from 2.7% driven by strong labor market and rising wages.
Gross Domestic Product in current dollars increased at an annual rate of 6.5% or $381.5 billion, in the first quarter to a level of $24.38 trillion.
In the fourth quarter current dollar GDP increased 14.5%, or $800.5 billion.
Real GDP growth in the fourth quarter 2021 was 6.9% and for full-year 2021 was 5.5%.
The bureau also revised higher Gross Domestic Income on higher than expected wages and salaries.
The increase in wages and salaries was revised higher by $66.6 billion to $341.0 billion in the fourth quarter lifting the real gross domestic income to 6.3% in the fourth quarter, an upward revision of 1.2 percentage points from the previous estimate.
U.S. Indexes Extend Gains On Retail and Tech Stocks Surge
Barry Adams
26 May, 2022
New York City
In morning trading stocks open higher after weeks of losses and negative sentiment dragging the market lower.
The S&P 500 index gained 0.6% to 4,002.75 and the Nasdaq Composite index advanced 1.8% to 11,468.26.
Investors also cheered after Broadcom announced a $61 billion deal to acquire VMWare, third largest ever tech deal.
Broadcom gained 0.9% to 536,29 and VMWare 0.2% to $120.87 and extended the 5-day gain to 26.4% when the deal was first reported in the media.
U.S. GDP growth in the first quarter ending in March was revised lower to 1.5% annual rate in the second estimate from the initial projection of 1.4% by the Bureau of Economic Analysis.
The rise in consumer spending was pulled down by weaker estimates of corporate inventories and residential investment and larger trade deficit also trimmed the projection.
The downward revision is the worst since the pandemic-impacted second quarter 2020 when the GDP declined at an annual pace of 31.2%.
Personal Consumption Expenditure, a measure of consumer spending, was revised higher to 3.1% from 2.7% driven by strong labor market and rising wages.
Initial weekly jobless claims fell to 208,000 in the week ending on May 21 from the unrevised claims of 218,000 in the previous week.
Continuing claims for the week ending on May 14 declined 14,250 to 1.374 million, the lowest level since January 1. 1970.
Dollar General soared 17% to $228.82 after the deep discount retailer reported first quarter net sales increased 4.2% to $8.8 billion and comparable sales decreased 0.1%.
Diluted earnings per share decreased 14.5% to $2.41.
Macy's Inc soared 15% to $22.18 after the department store operator reported revenues for the quarter ended on April 30 increased 14% to $5.35 billion.
The retailer reaffirmed its full-year revenues growth between flat and 1% and sales to range between $24.46 billion and $25.7 billion.
However, the retailer lifted adjusted diluted earnings per share range to between $4.53 and $4.95 from $4.13 to $4.52.
Costco Wholesale Corp gained 2.5% to $451.18 ahead of quarterly earnings release after the close of the market today.
Broadcom Agrees to Acquire VMWare for $61 Billion
Barry Adams
26 May, 2022
New York City
Broadcom Inc agreed to acquire VMWare, Inc for $61 billion in a cash and stock deal.
The deal price is based on the closing price of Broadcom stock on May 25 and Broadcom will assume $8 billion of VMWare's net debt.
The deal diversifies Broadcom from a semiconductor company to a higher margin enterprise software company active in cloud infrastructure and network management.
VMWare acquisition is the largest tech deal only to be surpassed by the impending acquisition of Activision Blizzard by Microsoft for $69 billion and Dell's purchase of EMC for $67 billion in 2016.
Broadcom has been on an acquisition spree and completed the purchase of the troubled software developer CA Technologies for $18.9 billion in 2018 and the cyber security company Symantec for $10.7 billion in 2019.
Dell Technologies acquired EMC including VMWare in a leveraged buyout and was spun off on November 1, 2021 to repay debt.
Separately, Broadcom reported sales in the fiscal 2022 second quarter ending on May 1 increased 23% to $8.1 billion and net income jumped 78% to $2.59 billion or $5.93 per share.
Fed Policy Makers Show Willingness to Lift Rates Higher
Brian Turner
25 May, 2022
New York City
The Fed minutes of the meeting held on May 3-4 showed all participants agreed to the need to raise rates to tame inflation before it anchors deeper in the economy.
"Most participants judged that 50 basis point increases in the target range would likely be appropriate at the next couple of meetings," the minutes noted.
The policy committee also showed its willingness to move the rate stance to more restrictive if necessary.
" At present, participants judged that it was important to move expeditiously to a more neutral monetary policy stance.
They also noted that a restrictive stance of policy may well become appropriate depending on the evolving economic outlook and the risks to the outlook," the minutes highlighted.
The economic outlook prepared by the staff also highlighted that the trajectory for the GDP growth in April was in line with March projections.
The staff noted that the first quarter real GDP decline was more driven by volatile capital spending and labor markets and industrial production provided a more accurate picture of the final aggregate demand.
The bond market did not find anything new in the minutes and the yield on 10-year Treasury notes were nearly unchanged at 2.743%.
The S&P 500 index 1.3% to 3,992.25 and the Nasdaq Composite advanced 2% to 11,486.76.
S&P 500 Rebounds 1% After Fed Minutes
Barry Adams
25 May, 2022
New York City
Stocks turned higher after the Fed minutes of meetings showed that policy makers are willing to lift rates higher than anticipated by the market.
The S&P 500 index 0.95% to 3,979.25 and the Nasdaq Composite advanced 1.5% to 11,434.74.
The Fed minutes of the meeting held on May 3-4 showed all participants agreed to the need of raising rates to tame inflation before it anchors deeper in the economy.
"Most participants judged that 50 basis point increases in the target range would likely be appropriate at the next couple of meetings," the minutes noted.
The policy committee also showed its willingness to move the rate stance to more restrictive if necessary.
" At present, participants judged that it was important to move expeditiously to a more neutral monetary policy stance.
They also noted that a restrictive stance of policy may well become appropriate depending on the evolving economic outlook and the risks to the outlook," the minutes highlighted.
The bond market did not find anything new in the minutes and the yield on 10-year Treasury notes were nearly unchanged at 2.743%.
Crude oil advanced 98 cents to $110.73 a barrel and natural gas inched higher than $9 mBTU before closing at $8.87.
The natural gas futures are trading at a 14-year high.
Retail stocks were in focus after Ralph Lauren, Nordstrom and Urban Outfitters reported better-than-expected results but Dick's Sporting Goods lowered annual outlook.
Retail stocks reversed the earlier decline after Kohl's indicated that participants are active in bidding for the company despite the current market volatility.
Dick's Sporting Goods gained 9.7% to $78.14, Ralph Lauren advanced 3.3% to $94.13, Nordstrom increased 13.8% to $23.53, and Urban Outfitters jumped 15% to $20.82.
Tech stocks also led the market rally after weeks of losses.
Intuit Inc jumped 8.2% to $387.83, Docusign Inc gained 8% to $77.44, and Zoom Video soared 8.2% to $102.04.
After the close Nividia and Snowflake are scheduled to release earnings and the warehouse club Costco on Thursday.
Toll Brothers increased 8.5% to $48.15 after the luxury home builder reported strong quarterly results and said backlog of home values surged 35% to $11.7 billion.
Urban Outfitters Net Plunges On Lower Gross Margin
Scott Peters
25 May, 2022
New York City
Urban Outfitters, the specialty apparel retailer, said its revenues and earnings were hit by higher freight and raw materials costs.
Net sales increased 13.4% to $1.05 billion and net income declined on higher costs.
All five brands controlled by the company registered higher sales in the quarter. Comparable store retail sales increased in double-digit partially offset by mid-single-digit sales decline in online sales.
Comparable retail sales increased 11% from a year ago and by brand increased 18% at the Anthropologie Group, 15% at the Free People Group and 1% at Urban Outfitters.
North America sales increased to $811.3 million from $750.2 million, an increase of 8% from a year ago.
Europe and rest of the world sales surged 35% to $114.9 million from $84.9 million from a year ago.
Wholesale segment net sales increased 6%, driven by a 9% increase in Free People Group wholesale sales.
Nuuly segment net sales increased by $15.0 million driven by a "significant increase in our subscriber base."
Net income plunged to $31.5 million or 33 cents a share from $53.5 million or 54 cents a share a year ago.
Gross profit in the first quarter declined to 30.7% from 32.4%, selling and general expenses rose to 26.3% from 24.5%, and operating income declined to 4.4% from 5.9% a year ago.
Inventories at the end of the quarter shot up after Urban Outfitter branded goods sales were lower than expected, higher supply lead times also demand higher inventories, and rising costs of freight and raw materials added.
At the end of the quarter inventories rose 31.9% to $152.2 million.
In the quarter, the company repurchased and subsequently retired 2.4 million common shares for approximately $62 million and as of April 30 21.5 million common shares were remaining under the share repurchase programs.
During the quarter the retailer opened 5 new stores and closed 3 and the company plans to open 38 new stores, including 12 FP Movement stores, and close 16 existing stores.
Guidance and Outlook
The company issued no revenue or earnings guidance for the next quarter or the rest of the year.
Company and Stock
Urban Outfitters, Inc., offers lifestyle-oriented general merchandise and consumer products and services through a portfolio of consumer brands comprising of 262 Urban Outfitters stores, 237 Anthropologie Group stores, 174 Free People stores.
The company also owns and operates 11 Menus & Venues restaurants, 4 Urban Outfitters franchisee-owned stores and 2 Anthropologie Group franchisee-owned stores as of April 30, 2022.
In total, Urban Outfitters operates a total of 684 stores with selling retail square foot space of 4.5 million and employs 23,000 associated worldwide.
Urban Outfitters gained 11.4% to $20.11 after the apparel retailer reported earnings.
In the year-so-far Urban Outfitters stock has declined 32.5%.
Toll Brothers Home Backlog Value Jumps 35%
Scott Peters
25 May, 2022
New York City
Toll Brothers, the luxury home builder, said in the latest quarter it completed 2,407 homes, an increase of 6%.
Sales increased 19% to $2.2 billion and net income rose to $220.6 million or $1.85 a share from $127.9 million or $1.01 share a year ago.
Home sale gross margin in the quarter increased to 24.1% from 21.9% a year ago.
The company's board reactivated share repurchase program on May 17 with no expiry date for $900 million or 20 million shares at the current market price.
Backlog and Signed Contracts
Net signed contract value was $3.1 billion, up 1% compared to a year ago when contracted homes declined 18% to 2,874.
Backlog value increased 35% to $11.7 billion compared to a year ago when homes in backlog were 11,768, up 16%
Guidance and Outlook
In the fiscal third quarter the home builder plans to deliver 2,750 homes and for the full-year between 11,000 and 11,500 homes.
Average home delivered price per home in the third quarter to range between $895,000 and $915,000 and for the full-year between $890,000 and $910,000.
The company estimated SG&A as a percentage of home sales revenues at 10.5% in the third quarter and 10.4% for the full-year.
The company estimates home building in 325 active communities at the end of third quarter and 370 in the full-year.
Company and Stock
Toll Brothers jumped 3% to $45.98 after the company reported earnings.
For the year so far, Toll Brothers has fallen 32.7%.
Movers: Dick's Sporting, Intuit, Lyft, Nordstrom, Urban Outfitters, Toll Brothers
Barry Adams
25 May, 2022
New York City
Dick's Sporting Goods declined 13% to $62.21 after the retailer reported better-than-expected quarterly results and lower-than-expected fall in comparable sales.
Net sales declined 7.5% to $2.7 billion and comparable sales fell 8.5% in the quarter from a year ago.
Net income declined 28% to $260.6 million and earnings per share fell to $2.47 from $3.41 a year ago.
The company also lowered its annual outlook citing macro conditions and higher inflation.
For the full-year 2022, comparable sales are expected to fall between 2% and 8% and diluted earnings per share between $7.95 and $10.15.
Intuit Inc jumped 1.7% to $365.07 after the company reported April quarter revenues increased 35% to $5.6 billion and earnings per share rose 18% to $6.28 from $5.30.
Net income in the quarter soared to $1.8 billion from $1.5 billion a year ago.
Lyft Inc gained 0.1% to $16.72 after the ride-hailing company reversed its earlier plan to increase marking. The company now plans to limit hiring and trim marketing and promotion budget following the footsteps of Uber Technologies.
Nordstrom, Inc gained 4% to $21.56 after the apparel retailer reported a surge in sales and also lifted its annual sales and profit outlook.
Nordstrom after the close reported fiscal first quarter total revenues rose 20% to $3.57 billion and net income of $20 million or 13 cents a share compared to a loss of $166 million or $1.05 a share.
The retailer revised higher earnings per share for the year between $3.38 and $3.68 from the earlier estimate of $3.18 to $3.50.
Toll Brothers jumped 3% to $45.98 after the luxury home builder said in the latest quarter it completed 2,407 homes, an increase of 6%.
Sales increased 19% to $2.2 billion and net income rose to $220.6 million or $1.85 a share from $127.9 million or $1.01 share a year ago.
Home sale gross margin in the quarter increased to 24.1% from 21.9% a year ago.
Urban Outfitters gained 1.4% to $18.99 after the apparel retailer said its revenues and earnings were hit by higher freight and raw materials costs.
Net sales increased 13.4% to $1.05 billion and net income declined on higher costs. All five brands controlled by the company registered higher sales in the quarter.
Net income plunged to $31.5 million or 33 cents a share from $53.5 million or 54 cents a share a year ago.
Wendy's soared 9% to $17.75 after its largest shareholder Trian Fund Management with a stake of 19.4% said it is exploring merger or sale or other deals for the restaurant chain.
Stocks On Defensive Ahead of Fed Minutes
Barry Adams
25 May, 2022
New York City
U.S. market indexes pointed lower after a day of volatile trading and traders await details of the latest Federal Reserve's policy meeting on May 4.
Futures on the S&P 500 index declined 0.3% to 3,977.45 and the Nasdaq Composite fell 0.3% to 11,736.28.
At the last Fed policy meeting chaired by Jerome Powell the central bank lifted its key rate by 50 basis points and highlighted the urgency of taming elevated inflation.
Markets have been volatile and accelerated the declines on the worries that the Fed may be out of policy tools in combating elevated energy prices and may lag in taming inflation for a long time to come.
Crude oil futures for the front month delivery jumped $1.50 to $111.37 a barrel.
The yield on 10-year Treasury notes declined to 2.73%.
Earnings news dominated pre-market trading after retailers and home builders release earnings.
Dick's Sporting Goods declined 13% to $62.21 after the retailer reported better-than-expected quarterly results and lower-than-expected fall in comparable sales.
The company also lowered its annual outlook citing macro conditions and higher inflation.
Urban Outfitters gained 1.4% to $18.99 after the apparel retailer said its revenues and earnings were hit by higher freight and raw materials costs.
Net income plunged to $31.5 million or 33 cents a share from $53.5 million or 54 cents a share a year ago.
Nordstrom, Inc gained 4% to $21.56 after the apparel retailer reported a surge in sales and also lifted its annual sales and profit outlook.
Toll Brothers jumped 3% to $45.98 after the luxury home builder said in the latest quarter it completed 2,407 homes, an increase of 6%.
Sales increased 19% to $2.2 billion and net income rose to $220.6 million or $1.85 a share from $127.9 million or $1.01 share a year ago.
Home sale gross margin in the quarter increased to 24.1% from 21.9% a year ago.
Advance Auto Parts Net Sales Fall 1.3% On Flat Gross Margin
Scott Peters
24 May, 2022
New York City
Advance Auto Parts, Inc after the auto parts retailer reported sales in the first quarter ending on April 23 declined 1.3% to $3.4 billion and comparable same store sales increased 0.6%.
Net earnings in the quarter fell 26% to $139.7 million or $2.26 a share from $185.9 million or $2.81 a share.
Gross profit margin in the quarter was flat at 44.6% on the improved category mix and increased store brands partially offset by inflationary costs and unfavorable channel and product mix.
Net cash used in operating activities was $54.9 million and free cash outflow was $169.8 million compared to net cash flow of $329.9 million and free cash inflow of $259.0 million in a year ago period.
The decrease was primarily driven by lower net income and working capital.
On a GAAP basis, the company's operating income was $203.3 million, or 6.0% of net sales, compared with 7.6% in the first quarter of 2021.
The retailer also opened 35 new stores and returned $403 million to shareholders through stock repurchases and dividends.
During the quarter, the company repurchased 1.1 million shares at an aggregate cost of $248.2 million at an average price of $231.41 a share.
At the end of the fiscal first quarter the company had $1.3 billion remaining in its share repurchase program.
On May 18, 2022 the company declared a regular cash dividend of $1.50 per share to be paid on July 1, 2022 to all common stockholders of record as of June 17, 2022.
Guidance and Outlook
The retailer guided full-year 2022 revenues between $11.2 billion and $11.5 billion and comparable sales to increase between 1% and 3%.
Capital expenditures between $300 million and $350 million and stock repurchase between $500 million and $700 million.
Adjusted diluted earnings per share are expected to fall between $13.30 and $13.85 compared to $12.02 in 2021.
Free cash flow is expected to exceed $775 million compared to $823 million in 2021.
Company and Stock
Advance Auto Parts, Inc declined 3.7% to $176.50 after the auto parts retailer reported quarterly results.
Advance Auto Parts has fallen 23.9% to $180.23.