Ascena Surges on Outlook, Workday Plunges 16% on Weak Views

Mukesh Buch
02 Dec, 2016
New York City

Big Lots net swung to profit. Genesco net tumbled 20% and reiterated earnings forecast. G-III net plunged 19%. Five Below net income and sales surged. Ulta Salon net jumped and the retailer lifted fiscal sales outlook. Workday net loss widened.

[R]2:10 PM New York – Big Lots net swung to profit. Genesco net tumbled 20% and reiterated earnings forecast. G-III net plunged 19%. Five Below net income and sales surged. Ulta Salon net jumped and the retailer lifted fiscal sales outlook. Workday net loss widened.[/R]

Tollbooth Index gained 23.47 or 0.2% to 10,986.95.

Earnings Review

Ascena Retail Group Inc ((ASNA)) surged 24.2% or $1.41 to $7.24 after the specialty retailer said net sales in the first-quarter ending on October 29 were flat from a year ago at $1.67 billion.

Comparable store sales in the quarter declined 5%.

Net in the quarter swung to profit $14.4 million or 7 cents per diluted share compared to the net loss of $18.1 million or 10 cents per share from the same quarter last year.

Ascena forecasted non-GAAP diluted earnings per share in the year in the range of 60 cents to 65 cents.

Big Lots, Inc ((BIG)) gained 20 cents to $50.97 after the discount retailer said net sales in the third-quarter ending on October 29 fell 1% from a year ago to $1.1 billion.

Comparable store sales in the quarter were flat.

Net in the quarter swung to profit $1.4 million or 3 cents per diluted share compared to the net loss of $1.5 million or 3 cents per share from the same quarter last year.

The discount retailer reaffirmed diluted earnings per share forecast in the fourth-quarter between $2.18 and $2.23 and comparable store sales in the range of flat to 2% increase compared to 0.7% increase in the same period a year ago.

For the year, Big Lots lifted diluted earnings per share estimate in the range of $3.55 to $3.60 compared to earlier forecasted range of $3.45 to $3.55 based on comparable store sales to increase in the range 1% to 2% and total sales are estimated to increase slightly.

Genesco Inc ((GCO)) jumped 4.2% or $2.65 to $66 after the footwear, apparel and accessories retailer reported net sales in the third-quarter ending on October 29 plunged 8% from a year ago to $710.8 million.

Same-store sales in the quarter dropped 4% but online sales jumped 7%.

Net income in the quarter tumbled 20.3% to $25.9 million or $1.30 per diluted share compared to the $32.5 million or $1.42 per share from the same quarter last year.

Genesco reiterated diluted earnings per share in the fiscal year in the range of $3.80 to $4, excluding non-cash asset impairments and other charge on the sale of Lids Team Sports.

G-III Apparel Group, Ltd ((GIII)) soared 5.8% or $1.59 to $28.47 after the women’s apparel manufacturer and retailer stated net sales in the third-quarter ending in October dropped 3% from a year ago to $883 million.

Comparable store sales in the quarter plunged 8% while online sales surged 15% to $96.3 million.

Net income in the quarter plunged 19% to $70.6 million or $1.50 per diluted share compared to the $87.2 million or $1.87 per share from the same quarter last year.

Five Below Inc ((FIVE)) soared 12.5% or $5 to $44.88 after the specialty retailer said net sales in the third-quarter ending on October 29 jumped 17.6% from a year ago to $199.5 million.

Comparable store sales in the quarter slid 0.2%.

Net income in the quarter surged 25.6% to $5.4 million or 10 cents per diluted share compared to the $4.3 million or 8 cents per share from the same quarter last year.

In the fourth-quarter, the retailer forecasted net sales in the range of $391 million to $397 million based on opening 5 net new stores and comparable sales to increase 2% to 3%.

Retailer also estimated net income between $49.2 million and $50.6 million and diluted earnings per share in the range of 89 cents to 92 cents.

Five Below estimated net sales in fiscal year between $1 billion to $1.01 billion based on opening 85 net new stores year and comparable sales to jump 2.3% to 2.7% and net income between $71.3 million to $72.7 million and diluted earnings per share in the range of $1.29 to $1.32.

Ulta Salon, Cosmetics & Fragrance, Inc ((ULTA)) slipped 1.3% or $3.24 to $254.68 after the fragrance and beauty products retailer reported net sales in the third-quarter ending on October 29 soared 24.2% from a year ago to $1.1 billion.

Comparable store sales in the quarter surged 14.3%, including salon comparable sales growth of 10.3%.

Net income in the quarter jumped 23.2% to $87.6 million or $1.40 per diluted share compared to the $71.1 million or $1.11 per share from the same quarter last year.

The beauty products retailer lifted net sales forecast in the year between $1.52 billion and $1.54 billion compared to the reported net sales of $1.27 billion and comparable sales, including e-commerce sales to increase between 12% and 14% compared to increase of 12.5% in the same period a year ago.

[Workday Inc (WDAY)) tumbled 16.2% or $13.24 to $68.31 after the enterprise cloud applications provider said total revenues in the third-quarter ending in October surged 34.2% from a year ago to $409.6 million.

Net loss in the quarter widened to $114 million or 66 cents per diluted share compared to the $77.8 million or 41 cents per share from the same quarter last year.