Alibaba Rides China Online Wave; Cisco, Wal-Mart Struggle

Mukesh Buch
17 Aug, 2017
New York City

Buckle net plunged 26%. Alibaba profit and revenues soared. Bon-Ton net loss narrowed. The Cato net swung to a loss on 13% decline in revenues. Cisco net declined 14%. Madison Square net loss widened. Stage Stores surged after lifted fiscal outlook. Wal-Mart net tumbled 23%.

[R]2:10 PM New York – Buckle net plunged 26%. Alibaba profit and revenues soared. Bon-Ton net loss narrowed. The Cato net swung to a loss on 13% decline in revenues. Cisco net declined 14%. Madison Square net loss widened. Stage Stores surged after lifted fiscal outlook. Wal-Mart net tumbled 23%.[/R]

Tollbooth Index slumped 61.93 or 0.5% to 12,186.42.

Earnings Review

Buckle Inc ((BKE)) fell 5 cents to $14.20 after the casual apparel, footwear and accessories retailer said net sales in the second-quarter ending on July 29 slumped 7.8% from a year ago to $195.7 million.

Comparable store sales in the quarter declined 7.7% and online sales dropped 4.5% to $19.5 million.

Net income in the quarter plunged 25.8% to $11.5 million or 24 cents per diluted share from $15.5 million or 32 cents in the same quarter last year.

Alibaba Group Holding Ltd ((BABA)) jumped 3.5% or $5.74 to $165.25 after the China-focused online and mobile marketplace operator reported revenues in the first-quarter ending in June surged 56% from a year ago to $7.4 billion.

Net income in the quarter soared 96% to $2.1 billion and diluted earnings jumped 92% to 83 cents from the same period a year ago.

Bon-Ton Stores Inc ((BONT)) soared 5.7% or 40 cents to 74 cents after the department stores operator stated net sales in the second-quarter ending on July 29 dropped 5.9% from a year ago to $525.5 million.

Comparable store sales in the quarter plunged 6.1%.

Net loss in the quarter narrowed to $33.2 million or $1.64 per diluted share from $38.7 million or $1.95 in the same quarter last year.

In fiscal 2017, the retailer forecasted diluted loss per share in a range of $2.08 to $2.59 and comparable sales to decrease between 3.5% and 4.5% but debt to decrease by $15 million to $20 million by the end of fiscal 2017.

The Cato Corporation ((CATO)) plummeted 6.4% or 95 cents to $13.85 after the fashion specialty retailer said total revenues in the second-quarter ending on July 29 plunged 13% from a year ago to $205 million.

Comparable store sales in the quarter tumbled 14%.

Net in the quarter swung to a loss of $0.9 million or 3 cents per diluted share from profit of $15.9 million or 57 cents in the same quarter last year.

""Negative sales trends continue to put severe pressure on merchandise margins and profitability as we continue to work through our merchandise missteps,"" said chairman, president and chief executive officer John Cato.

Cisco Systems, Inc ((CSCO)) slumped 4.2% or $1.35 to $30.99 after the network equipment maker reported revenues in the fourth-quarter ending in June slumped 4% from a year ago to $12.1 billion.

Net income in the quarter declined 14% to $2.4 billion or 48 cents per diluted share from $2.8 billion or 56 cents in the same quarter last year.

Cisco said total gross margin and product gross margin in the quarter were 62.2% and 60.3% respectively and service gross margin was 67.8%.

Madison Square Garden Co ((MSG)) slumped 2% or $4.42 to $213 after the sports and entertainment services provider said revenues in the fourth-quarter ending in June soared 40% from a year ago to $305.6 million.

Net loss in the quarter widened to $84.3 million or $3.58 per diluted share from $58.4 million or $2.39 in the same quarter last year.

Stage Stores Inc ((SSI)) surged 25.2% or 38 cents to $1.89 after the specialty department stores operator stated net sales in the second-quarter ending on July 29 advanced 11.4% from a year ago to $377.1 million.

Comparable store sales in the quarter dropped 3.6%.

Net in the quarter swung to a loss of $6.3 million or 23 cents per diluted share from profit of $0.04 million or break even in the same quarter last year.

The retailer lifted fiscal 2017 diluted loss per share estimate between 90 cents and $1.35 compared to the earlier estimate of 95 cents to $1.55 and comparable sales are in a range of -4% to -7%.

Stein Mart, Inc ((SMRT)) dropped 4.8% or 6 cents to $1.19 after the specialty stores operator said net sales in the second-quarter ending on July 29 fell 2.7% from a year ago to $311 million.

Comparable store sales in the quarter plummeted 5%.

Net in the quarter swung to a loss of $13 million or 28 cents per diluted share from profit of $3 million or 6 cents in the same quarter last year.

Synopsys, Inc ((SNPS)) slipped 1.1% or 87 cents to $78.22 after the integrated circuits maker said total revenues in the third-quarter ending in July surged 13% from a year ago to $695.4 million.

Net income in the quarter surged 41% to $116.8 million or 75 cents per diluted share from $64.7 million or 42 cents in the same quarter last year.

Synopsys forecasted revenues in the fourth-quarter between $642 million and $657 million and diluted earnings per share in the range of 26 cents to 33 cents.

In the fiscal 2017, the chip maker estimated revenues in the range of $2.67 billion to $2.69 billion and diluted earnings per share between $1.92 and $1.99.

Wal-Mart Stores Inc ((WMT)) slumped 1.7% or $1.35 to $79.63 after the supermarket stores operator reported total revenues in the second-quarter ending in July jumped 2.1% from a year ago to $123.4 billion.

U.S. comparable sales increased 1.8% with traffic growth of 1.3% and comparable sales in Sam''s Club advanced 1.2%.

Net income in the quarter tumbled 23.2% to $2.9 billion or 96 cents per diluted share from $3.8 billion or $1.21 in the same quarter last year.

Wal-Mart lifted full year diluted earnings per share in the range of $4.30 to $4.40 from the earlier estimate of $4.20 to $4.40 per share.