Ralph Lauren Beats Expectations; Macy

Mukesh Buch
10 Nov, 2016
New York City

Cott net swung to a loss but revenues rose. Macy

[R]11:50 AM New York – Cott net swung to a loss but revenues rose. Macy’s net tumbled 86% and signed a strategic alliance with Brookfield Asset Management. Maximus net surged 43%. Kohl’s net jumped 22% and the retailer reaffirmed earnings forecast. Ralph Lauren net plunged 72%.[/R]

Tollbooth Index dropped 43.74 or 0.4% to 10,786.48.

Earnings Review

Cott Corporation ((COT)) jumped 5.7% or 75 cents to $13.94 after the Canada-based non-alcoholic beverages maker said revenues in the third-quarter ending on October 1 advanced 17% from a year ago to $885.1 million.

Net in the quarter swung to a loss of $4 million or 3 cents per diluted share compared to the profit of $5 million or 4 cents per share from the same quarter last year.

Mylan NV ((MYL)) gained 1.1% or 43 cents to $39.35 after the U.K.-focused generic products maker reported said revenues in the third-quarter ending in September soared 13.3% from a year ago to $3.06 billion.

Net in the quarter swung to a loss of $119.8 million or 23 cents per diluted share compared to the profit of $428.6 million or 83 cents per share from the same quarter last year.

Mylan said generic segment performed better than specialty business and lifted revenues but the launch of new product and acquisitions of Renaissance Acquisition Holdings lead to net loss.

During the quarter, Mylan agreed for large settlement with the U.S. government on allegations of improper classification of EpiPen products to pay lower refund to Medicaid.

The generic products maker reaffirmed earnings per share in the full-year between $4.70 and $4.90 and to achieve $6 per share in 2018.

Macy’s Inc ((M)) soared 7.4% or $2.85 to $41.23 after the apparel, accessories and consumer goods retailer reported net sales in the third-quarter ending on October 29 dropped 4.2% from a year ago to $5.6 billion.

Comparable store sales in the quarter slipped 2.7%

Net income in the quarter tumbled 85.6% to $17 million or 5 cents per diluted share compared to the $118 million or 36 cents per share from the same quarter last year.

Macy’s forecasted comparable sales on an owned store plus licensed basis in the year to decrease in the range of 2.5% to 3% and diluted earnings per share between $3.15 and $3.40.

Separately, the retailer signed a contract to sell 248,000 square-foot Union Square Men’s building in San Francisco for about $250 million and will use the proceeds to consolidate the Men’s store into its main Union Square store.

Separately, today morning Macy’s signed a strategic alliance with Brookfield Asset Management, alternative asset manager and search for ways to expand real estate foot print.

CEO Terry Lundgren offered optimism and said sales initiatives are gaining traction and third quarter results are in-line with expectations.

Maximus Inc ((MMS)) surged 10.3% or $4.63 to $49.84 after the business process services provider stated revenues in the fourth-quarter ending in September jumped 8% from a year ago to $623.1 million.

Net income in the quarter surged 43.2% to $50.7 million or 77 cents per diluted share compared to the $35.4 billion or 53 cents per share from the same quarter last year.

Kohl’s Corporation ((KSS)) surged 13.9% or $6.34 to $52.08 after the department stores operator said sales in the third-quarter ending on October 29 fell 2.3% from a year ago to $4.3 billion.

Comparable store sales in the quarter decreased 1.7%

Net income in the quarter jumped 22% to $146 million or 83 cents per diluted share compared to the $120 million or 63 cents per share from the same quarter last year.

The retailer reaffirmed its prior diluted earnings per share forecast in fiscal 2016 in the range of $3.12 to $3.32.

Perrigo Company Plc ((PRGO)) advanced 4.5% or $3.74 to $87.25 after the Ireland-based consumer goods and pharmaceutical products maker reported net sales in the third-quarter ending on October 1 rose 1% from a year ago to $1.4 billion.

Net in the quarter swung to a loss of $1.3 billion or $8.76 per diluted share compared to the profit of $113 million or 76 cents per share from the same quarter last year.

The consumer goods maker reported loss of $1.7 billion, including a non-cash impairment charge related to goodwill and intangibles amortization.

Perrigo estimated loss per diluted share in the range of $9.04 to $9.34 compared to the reported diluted loss per share of 23 cents in a year ago period.

Ralph Lauren Corp ((RL)) jumped 5.1% or $5.17 to $107.17 after the lifestyle products distributor said net revenues in the second-quarter ending on October 1 dropped 7.6% from a year ago to $1.8 billion.

Net income in the quarter plunged 71.9% to $45 million or 55 cents per diluted share compared to the $160 million or $1.86 per share from the same quarter last year.

The lifestyle products distributor forecasted restructuring charges of about $400 million in the fiscal 2017 and approx $150 million inventory charge associated with the company''s Way Forward plan.