Lululemon Soar, RadioShack Struggles to Avert Bankruptcy

Mukesh Buch
11 Sep, 2014
New York City

Brady Corp plunged despite quarterly net loss narrowed. Five Below net doubled after sales soared. Kroger profit climbed 9% on 12% increase in sales. Lululemon lifted annual outlook. Mens Wearhouse net plunged 71%. RadioShack net loss widened and arranges debt financing.

[R]12:20 PM New York – Brady Corp plunged despite quarterly net loss narrowed. Five Below net doubled after sales soared. Kroger profit climbed 9% on 12% increase in sales. Lululemon lifted annual outlook. Men''s Wearhouse net plunged 71%. RadioShack net loss widened and arranges debt financing.[/R]

Tollbooth Index fell 0.3% or 25.66 to 9,485.92.

Earnings Review

Brady Corporation ((BRC)) plunged 9.6% or $2.61 to $24.46 after the identification solutions provider said net sales in the fourth-quarter ending in July increased 2% to $316.7 million from a year ago period.

Net loss in the quarter narrowed to $110 million or $2.15 a diluted share compared to $177 million or $3.43 from a same quarter last year.

Five Below Inc ((FIVE)) gained 1.8% or 78 cents to $43.08 after the department stores operator stated net sales in the second-quarter ending on August 2 soared 30.2% to $152.5 million from a year ago period. Comparable store sales in the quarter climbed 3.2%.

Net income in the quarter doubled to $8.3 million or 15 cents a diluted share compared to $4.1 million or 7 cents from a same quarter last year.

The company forecasted third-quarter net sales in the range of $136 million to $138 million and net income between $2.8 million to $3.3 million and diluted earnings per share in the range of 5 cents to 6 cents.

For the year, the retailer expected net sales between of $681 million to $687 million and comparable store sales to increase about 4%. Net income estimated in the range of $47.2 million to $48.8 million and diluted earnings per share between 86 cents and 89 cents.

The Kroger Co ((KR)) slipped 49 cents to $51.41 after the retailer reported total sales in the second-quarter ending on August 16 soared 12% to $25.3 billion from a year ago period.

The sales were boosted by acquisition of Harris Teeter that added more than 200 stores and also the purchase of online vitamin store Vitacost.com for $280 million.

Net earnings in the quarter climbed 9% to $347 million or 70 cents a diluted share compared to $317 million or 60 cents from a same quarter last year.

Lululemon Athletica Inc ((LULU)) surged 15.9% or $6.12 to $44.51 the athletic apparel retailer reported net revenue in the second-quarter ending on August 3 jumped 13% to $390.7 million from a year ago period. Comparable store sales in the quarter dropped 5%.

Net income in the quarter declined 13% to $49 million or 33 cents a diluted share compared to $56 million or 39 cents from a same quarter last year.

The Men''s Wearhouse, Inc. ((MW)) declined 5.5% or $3 to $50.87 after the specialty retailer stated net sales in the second-quarter ending on August 2 soared 24.1% to $803.1 million from a year ago period.

Comparable store sales at Men''s Wearhouse, Moores and K&G jumped at 4.4%, 10.2% and 5.6% respectively.

Net earnings in the quarter plunged 71.3% to $12.3 million or 25 cents a diluted share compared to $42.9 million or 85 cents from a same quarter last year.

RadioShack Corporation ((RSH)) surged 17.1% or 16 cents to $1.09 after the consumer electronics goods retailer said net revenue in the second-quarter ending on August 2 declined 21.8% to $673.8 million from a year ago period. Comparable store sales in the quarter tumbled 20%.

Net loss in the quarter widened to $137.4 million or $1.35 a diluted share compared to $52.2 million or 51 cents from a same quarter last year.

The company signaled that it may need more capital and it is working with bond holders, banks and landlords.