Family Dollar Rejects $9 B Offer, Bon-Ton, HP Jump, Sears Drops

Mukesh Buch
21 Aug, 2014
New York City

Buckle net fell 2%. Dollar Tree net slipped 3% while sales jumped. Family Dollar rejected $9 billion acquisition offer of Dollar General. Hewlett-Packard profit plunged 29% after revenue barely rose 1%. L Brands net climbed 5%. Sears net loss widened.

[R]12:15 PM New York – Buckle net fell 2%. Dollar Tree net slipped 3% while sales jumped. Family Dollar rejected $9 billion acquisition offer of Dollar General. Hewlett-Packard profit plunged 29% after revenue barely rose 1%. L Brands net climbed 5%. Sears net loss widened.[/R]

Tollbooth Index rose 0.2% or 20.49 to 9,514.07.

Earnings Review

The Buckle, Inc ((BKE)) soared 4.7% or $2.22 to $49.30 after the apparel, footwear, and accessories retailer reported net sales in the second-quarter ending on August 2 rose 1.4% to $235.7 million from a year ago period. Comparable store sales in the quarter slid 0.5%.

Net income in the quarter fell 2.4% to $24.5 million or 51 cents a diluted share compared to $25.1 million or 52 cents from a same quarter last year.

The Bon-Ton Stores, Inc ((BONT)) surged 8% or 72 cents to $9.77 after the department store operator reported total sales in the second-quarter ending on August 2 rose 1.1% to $563.5 million from a year ago period. Comparable store sales in the quarter increased 1.6%.

Net loss in the quarter narrowed to $36.2 million or $1.86 a diluted share compared to $37.3 million or $1.95 from a same quarter last year.

Children’s Place Inc ((PLCE)) climbed 5.2% or $2.62 to $53.07 after the specialty retailer stated net sales in the second-quarter ending on August 2 rose 0.6% to $384.6 million from a year ago period. Comparable retail sales in the quarter increased 0.8%.

Net loss in the quarter widened to $10.7 million or 59 cents a diluted share compared to $23.6 million or $1.05 from a same quarter last year.

Dollar Tree, Inc. ((DLTR)) slipped 1.4% or 80 cents to $54.20 after the discount store operator said net sales in the second-quarter ending on August 1 jumped 9.5% to $2.03 billion from a year ago period. Comparable store sales in the quarter advanced 4.5%.

Net income in the quarter slipped 2.6% to $121.5 million or 59 cents a diluted share compared to $124.7 million or 56 cents from a same quarter last year.

Family Dollar Stores Inc. ((FDO)) fell 26 cents to $79.55 after the discount stores operator rejected $8.95 billion acquisition offer of Dollar General Corp, citing antitrust concerns and support of buyout offer from Dollar Tree Inc.

Hewlett-Packard Company ((HPQ)) jumped 4.8% or $1.67 to $36.79 after the technology products provider reported net sales in the third-quarter ending in July increased 1% to $27.6 billion from a year ago period.

Net earnings in the quarter plunged 29% to $1 billion or 52 cents a diluted share compared to $1.4 billion or 71 cents from a same quarter last year.

L Brands Inc ((LB)) rose 1% or 64 cents to $63.62 after the specialty retailer said net sales in the second-quarter ending on August 2 jumped 6% to $2.68 billion from a year ago period. Comparable store sales in the quarter increase 3%.

Net income in the quarter rose 5.3% to $188.4 million or 63 cents a diluted share compared to $178.9 million or 61 cents from a same quarter last year.

The company expected third quarter earnings per share in the range of 26 cents to 31 cents and lifted earnings per share forecast between $3.03 and $3.18 from earlier guidance of $3 to $3.15.

Sears Holdings Corporation ((SHLD)) plunged 7.6% or $2.61 to $33.34 after the retailer stated net sales in the second-quarter ending in July dropped 10% to $8.0 billion from a year ago period.

Net loss in the quarter widened to $573 million or $5.39 a diluted share compared to $194 million or $1.83 from a same quarter last year.

The Toro Company ((TTC)) gained 1.7% or $1.04 to $62.29 after the turf and agricultural machinery maker said net sales in the third-quarter ending in July jumped 11% to $567.5 million from a year ago period.

Net income in the quarter soared 25% to $50 million or 87 cents a diluted share compared to $40 million or 68 cents from a same quarter last year.