Big Lots, Dollar General, Tiffany Net Rise; Dollar Tree Lower Outlook

Mukesh Buch
26 Aug, 2016
New York City

Big Lots net rose and lifted earnings forecast. Berry Plastics agreed to acquire AEP Industries for $765 million in cash and stock. Dollar Tree lowered full-year sales outlook. Dollar General net soared 9%. Tiffany net rose but revenues fell.

[R]12:40 PM New York – Big Lots net rose and lifted earnings forecast. Berry Plastics agreed to acquire AEP Industries for $765 million in cash and stock. Dollar Tree lowered full-year sales outlook. Dollar General net soared 9%. Tiffany net rose but revenues fell.[/R]

Tollbooth Index decreased 38.80 or 0.4% to 11,021.46.

Earnings Review

Big Lots, Inc ((BIG)) declined 3.2% or $1.71 to $51.23 after the discount retailer reported revenues in the second-quarter ending in July fell 0.5% from a year ago at $1.2 billion.

Comparable store sales in the quarter increased 0.3%, represents the 10th consecutive quarter of growth.

Net income in the quarter rose 1.9% to $22.7 million or 50 cents per diluted share compared to the $17.6 million or 34 cents per share from the same quarter last year.

The discount retailer lifted diluted earnings per share forecast in the full-year between $3.45 and $3.55 from earlier estimated range of $3.35 to $3.50.

Berry Plastics Group Inc ((BERY)) slid 12 cents to $45.27 after the plastic consumer packaging materials provider agreed to acquire AEP Industries Inc for $765 million in a cash and stock transaction that comprise $110 in cash or 2.5011 shares.

The transaction is expected to be completed in the fourth-quarter of December.

Dollar Tree, Inc ((DLTR)) slipped 9 cents to $85.41 after the discount variety stores operator reported revenues in the second-quarter ending in July surged 65.9% from a year ago at $5 billion.

Same store sales in the quarter jumped 2.7%.

Net in the quarter swing to profit $170.2 million or 72 cents per diluted share compared to the loss of $98 million or 46 cents per share from the same quarter last year.

In the third-quarter, the retailer estimated net sales in the third-quarter between $5.02 billion and $5.10 billion and a low single-digit increase in same-store sales while diluted earnings per share in the range of 76 cents to 82 cents.

Dollar Tree lowered net sales forecast in the year in the range of $20.69 billion to $20.87 billion from previously estimated range of $20.79 billion to $21.08 billion and diluted earnings per share $3.67 and $3.82 compared to previous guidance of $3.58 to $3.80.

Dollar General Corp ((DG)) gained 77 cents to $76.37 after the home products and apparel discount retailer said net sales in the second-quarter ending on July 29 jumped 5.8% from a year ago at $5.39 billion.

Same store sales in the quarter rose 0.7%.

Net income in the quarter soared 8.9% to $306.5 million or $1.08 per diluted share compared to the $282.3 million or 95 cents per share from the same quarter last year.

Herbalife Ltd ((HLF)) declined 4.7% or $2.93 to $59 after the hedge fund manager William Ackman said on CNBC that he was approached by Carl Icahn to acquire 18% stake in the Cayman Islands-based nutritional products maker.

As last month, Herbalife agreed that Icahn Enterprises Holdings LP can increase their ownership in the company to up to 34.99%.

Tiffany & Co ((TIF)) increased 19 cents to $73.47 after the jeweller and specialty retailer said revenues in the second-quarter ending in July plunged 6% from a year ago at $931.6 million.

Comparable store sales in the quarter plummeted 8%.

Net income in the quarter rose 1% to $105.7 million or 84 cents per diluted share compared to the $104.9 million or 81 cents per share from the same quarter last year.