Earnings Momentum Lifts Costco to New High; Ulta Beauty Jumps

Mukesh Buch
26 May, 2017
New York City

Big Lots net surged 33% and lifted outlook. Brocade Communications net swung to a loss. Costco jumped to a new high on sustained earnings growth. Marvell net swung to profit. Ulta Beauty net and sales surged.

[R]12:50 PM New York – Big Lots net surged 33% and lifted outlook. Brocade Communications net swung to a loss. Costco jumped to a new high on sustained earnings growth. Marvell net swung to profit. Ulta Beauty net and sales surged.[/R]

Tollbooth Index edged up 2.47 to 12,198.80.

Earnings Review

Big Lots, Inc ((BIG)) rose 12 cents to $48.46 after the non-traditional, discount retailer said net sales in the first-quarter ending in April fell 1.2% from a year ago to $1.3 billion.

Comparable store sales in the quarter decreased 0.9%.

Net income in the quarter surged 33.1% to $51.5 million or $1.15 per diluted share from $38.7 million or 79 cents in the same quarter last year.

The discount retailer forecasted second-quarter diluted earnings per share between 58 cents and 63 cents and comparable store sales to increase in the low single digit range.

In fiscal 2017, Big Lots estimated diluted earnings per share in the range of $4.05 to $4.20 and comparable store sales increase in the range of 1% to 2%.

Brocade Communications Systems, Inc ((BRCD)) slid 1 cent to $12.64 after the networking hardware, software and services provider stated revenues in the second-quarter ending in April advanced 6% from a year ago to $552.8 million.

Net in the quarter swung to a loss of $11 million or 3 cents per diluted share from profit of $43.1 million or 11 cents in the same quarter last year.

Costco Wholesale Corporation ((COST)) gained 2.1% or $3.66 to $178.35 after the discount and membership warehouses operator reported total revenues in the third-quarter ending on May 7 soared 10.3% from a year ago to $28.9 billion.

Same store sales in the quarter jumped 5%.

Net income in the quarter surged 28.4% to $700 million or $1.59 per diluted share from $545 million or $1.24 in the same quarter last year.

Caleres Inc ((CAL)) jumped 6.2% or $1.55 to $26.39 after the footwear retailer and wholesaler stated sales in the first-quarter ending in April advanced 8% from a year ago to $631.5 million.

Same store sales in the quarter decreased 0.6%.

Net income in the quarter plunged 16.3% to $14.9 million or 35 cents per diluted share from $17.8 million or 41 cents in the same quarter last year.

In fiscal 2017, the footwear retailer estimated net sales in the range of $2.7 billion to $2.8 billion and diluted earnings per share in the range of $2.10 to $2.20.

GameStop Corp ((GME)) declined 7.2% or $1.70 to $21.92 after the video game retailer said net sales in the first-quarter ending in April rose 3.8% from a year ago to $2.05 billion.

Comparable store sales in the quarter increased 2.3%.

Net income in the quarter dropped 10.3% to $59 million or 58 cents per diluted share from $65.8 million or 63 cents in the same quarter last year.

Marvell Technology Group Ltd ((MRVL)) advanced 2.1% or 36 cents to $17.29 after the integrated circuits maker stated revenues in the first-quarter ending in March rose 1.2% from a year ago to $579.2 million.

Net in the quarter swung to profit $106.6 million or 21 cents per diluted share from a loss of $80.1 million or 16 cents in the same quarter last year.

Splunk Inc ((SPLK)) slumped 6.2% or $4.14 to $62.95 after the software developer said total revenues in the first-quarter ending in April jumped 30% from a year ago to $242.4 million.

Net loss in the quarter slightly narrowed to $99.9 million or 73 cents per diluted share from $100.9 million or 77 cents in the same quarter last year.

Ulta Beauty Inc ((ULTA)) jumped 3.5% or $10.28 to $303.32 after the cosmetic retailer reported total sales in the first-quarter ending in April surged 22.5% from a year ago to $1.3 billion.

Comparable store sales in the quarter soared 14.3% and retail comparable sales advanced 10.9%, including salon comparable sales growth of 9.9%.

Net income in the quarter jumped 39.4% to $128.2 million or $2.05 per diluted share from $92 million or $1.45 in the same quarter last year.