Kroger, Restoration Soar; Mattress Firm, Marvell, Zumiez Tumble

Mukesh Buch
11 Sep, 2015
New York City

GE agreed to sell its transportation finance business to BMO Financial. Brady net loss narrowed. Kroger net swung to a loss. Mattress Firm profit surged 53%. Marvell Technology net swung to a loss. Restoration Hardware net jumped 10%. Zumiez net tumbled 57%.

[R]12:20 PM New York – GE agreed to sell its transportation finance business to BMO Financial. Brady net loss narrowed. Kroger net swung to a loss. Mattress Firm profit surged 53%. Marvell Technology net swung to a loss. Restoration Hardware net jumped 10%. Zumiez net tumbled 57%.[/R]

Tollbooth Index gained 9.31 to 10,278.24.

Earnings Review

Brady Corp ((BRC)) plunged 10.6% or $2.28 to $19.24 after the identification solution products maker said revenues in the fourth-quarter ending in July declined 8.9% from a year ago to $288.6 million.

Net loss in the quarter narrowed to $39.4 million or 77 cents per diluted share compared to $110.4 million or $1.89 from the same quarter last year.

Cherokee Inc ((CHKE)) tumbled 31.6% or $7.61 to $16.65 after the fashion and lifestyle product marketer said revenues in the second-quarter ending on August 1 fell 3% from a year ago to $8.5 million.

Net income in the quarter declined 17.4% to $1.9 million or 22 cents per diluted share compared to $2.3 million or 27 cents from the same quarter last year.

General Electric Company ((GE)) fell 14 cents to $24.54 after the industrial conglomerate agreed to sell its transportation finance business in the U.S. and Canada to Canada-basedBMO Financial Group without disclosing of financial terms.

The transaction is expected to close by the end of the year.

Kroger Co ((KR)) soared 4.8% or $1.70 to $37.10 after the convenience stores operator reported total sales in the second-quarter ending on August 15 rose 0.9% from a year ago to $25.5 billion.

Net in the quarter swung to a loss of $7.7 million or 5 cents per diluted share compared to profit of $17.1 million or 11 cents from the same quarter last year.

For the year, Kroger lifted diluted earnings per share forecast in the range of $1.92 to $1.98 for from previous guidance between $1.90 and $1.95 and sales growth of 4% to 5% from earlier estimated range of 3.5% to 4.5%.

Mattress Firm Holding Corp ((MFRM)) plummeted 18.2% or $10.99 to $49.35 after the mattresses retailer said revenues in the second-quarter ending on August 4 soared 61.2% from a year ago to $661.1 million.

Comparable store sales in the quarter jumped 2.8%

Net income in the quarter surged 53.1% to $21.9 million or 61 cents per diluted share compared to $14.3 million or 41 cents from the same quarter last year.

Marvell Technology Group Ltd ((MRVL)) tumbled 17.1% or $1.80 to $8.75 after the fabless semiconductor provider reported revenues in the second-quarter ending on August 1decreased 1.8% from a year ago to $711.3 million, lower than $720 million estimated by analysts.

Net in the quarter swung to a loss of $382.4 million or 74 cents per diluted share compared to profit of $14.1 million or 3 cents from the same quarter last year.

The semiconductor maker also disclosed an internal revenue recognition inquiry focusing on 7% to 8% of revenues in the quarter. So far the audit committee has not found any material issues.

Restoration Hardware Holdings Inc ((RH)) surged 7.7% or $7.02 to $98.08 after the luxury home furnishings retailer said revenues in the second-quarter ending on August 4jumped 17% from a year ago to $661.1 million.

Comparable store revenues in the quarter soared 16%

Net income in the quarter advanced 9.5% to $29.9 million or 75 cents per diluted share compared to $27.3 million or 69 cents from the same quarter last year.

The company forecasted revenues for the third-quarter between $531 million to $541 million and for the fourth-quarter revenues in the range of $698 million to $708 million.

For the year, the home furnishings retailer estimated revenues between $2.16 billion and $2.18 billion

Zumiez Inc ((ZUMZ)) plunged 27.8% or $6.01 to $15.65 after the specialty retailer stated total net sales in the second-quarter ending on August 1 rose 1.8% from a year ago to $179.8 million.

Comparable store sales in the quarter declined 4.5%

Net income in the quarter tumbled 56.9% to $3.2 million or 11 cents per diluted share compared to $7.5 million or 26 cents from the same quarter last year.

The apparel, footwear and accessories retailer forecasted third-quarter same-store sales to fall between 7% and 9% and net sales between $202 million and $206 million and diluted earnings per share in the range of 27 cents to 31 cents.