Abercrombie Soars on Earnings Beat; Investors Expect More from Tiffany

Mukesh Buch
24 Aug, 2017
New York City

Abercrombie & Fitch loss widened. Burlington Stores net more than doubled. Dollar Tree lifted fiscal year forecast. Patterson net plunged 21%. Perry Ellis reported better than expected earnings. Staples net swung to profit. Tiffany net jumped.

[R]9:50 AM New York – Abercrombie & Fitch loss widened. Burlington Stores net more than doubled. Dollar Tree lifted fiscal year forecast. Patterson net plunged 21%. Perry Ellis reported better than expected earnings. Staples net swung to profit. Tiffany net jumped.[/R]

Tollbooth Index edged down 6.39 to 12,175.61.

Earnings Review

Abercrombie & Fitch Co ((ANF)) surged 13.9% or $1.34 to $10.95 after the specialty retailer said net sales in the second-quarter ending on July 29 slid 0.5% from a year ago to $779.3 million.

Comparable store sales in the quarter decreased 1%.

Net loss in the quarter widened to $15.5 million or 23 cents per diluted share from $13.1 million or 19 cents in the same quarter last year.

The retailer said it expects to open seven new stores in fiscal 2017 and capital expenditures for the full year of about $100 million.

Burlington Stores Inc ((BURL)) jumped 4.2% or $3.58 to $88.57 after the branded apparel retailer reported net sales in the second-quarter ending on July 29 soared 8.6% from a year ago to $1.4 billion.

Comparable store sales in the quarter advanced 3.5%.

Net income in the quarter surged 130% to $46.9 million or 66 cents per diluted share from $20.4 million or 28 cents in the same quarter last year.

In fiscal 2017, the retailer forecasted revenues to increase in the range of 8.4% to 8.9% and comparable store sales to increase between 2% and 3% and diluted earnings per share between $4.11 and $4.18.

Dollar Tree, Inc ((DLTR)) soared 8.1% or $6.05 to $80.37 after the discount stores operator said net sales in the second-quarter ending on July 29 jumped 5.7% from a year ago to $5.3 billion.

Same-store sales in the quarter increased 2.4% and same-store sales in Dollar Tree stores gained 3.9% and same-store sales in the Family Dollar stores rose 1%.

Net income in the quarter surged 37.4% to $233.8 million or 98 cents per diluted share from $170.2 million or 72 cents in the same quarter last year.

The retailer lifted fiscal 2017 revenues forecast in the range of $22.07 billion to $22.28 billion from the earlier estimate of $21.95 billion to $22.25 billion and diluted earnings per share between $4.44 and $4.60, compared to the previous estimate of $4.17 to $4.43

Hormel Foods Corp ((HRL)) declined 6.4% or $2.18 to $31.75 after the meat and food products producer reported total sales in the third-quarter ending in July dropped 4.1% from a year ago to $2.2 billion.

Net income in the quarter slumped 6.7% to $182.5 million or 34 cents per diluted share from $195.7 million or 36 cents in the same quarter last year.

Patterson Companies, Inc ((PDCO)) advanced 2.8% or $1 to $37.27 after the animal health products provider stated net sales in the first-quarter ending on July 29 fell 2.2% from a year ago to $1.3 billion.

Net income in the quarter plunged 20.8% to $30.8 million or 33 cents per diluted share from $38.9 million or 40 cents in the same quarter last year.

Perry Ellis International, Inc ((PERY)) soared 14.8% or $2.57 to $19.89 after the apparel designer reported total revenues in the first-quarter ending on April 29 declined 7.3% from a year ago to $242 million.

Net income in the quarter plunged 10.5% to $12.8 million or 83 cents per diluted share from $14.3 million or 95 cents in the same quarter last year.

J M Smucker Co ((SJM)) slumped 7.2% or $8.51 to $110.29 after the branded food and beverage marketer stated net sales in the first-quarter ending in July slumped 4% from a year ago to $1.75 billion.

Net income in the quarter plummeted 25.4% to $126.8 million or $1.12 per diluted share from $170 million or $1.46 in the same quarter last year.

Staples, Inc ((SPLS)) rose 2 cents to $10.20 after the specialty retailer said net sales in the second-quarter ending on July 29 dropped 3.1% from a year ago to $3.9 billion.

Comparable store sales in the quarter fell 1%.

Net in the quarter swung to profit $55 million or 8 cents per diluted share from a loss of $766 million or $1.18 in the same quarter last year.

Tiffany & Co ((TIF)) slipped 1.1% or 99 cents to $87.78 after the jeweler and watch retailer reported net sales in the second-quarter ending on July 29 rose 3% from a year ago to $959.7 million.

Comparable store sales in the quarter dropped 2%.

Net income in the quarter jumped 9% to $115 million or 92 cents per diluted share from $106 million or 84 cents in the same quarter last year.