Barnes & Noble Woes Deepen, Donaldson Outlook Disappoints

Mukesh Buch
07 Sep, 2017
New York City

Barnes & Noble extended quarterly comparable sales decline continue for the third year in a row. Dell Technologies signed multi-year agreement with GE. Donaldson net soared 15% but outlook disappointed. Hooker Furniture agreed to acquire Shenandoah Furniture. Korn/Ferry net surged.

[R]3:45 PM New York – Barnes & Noble extended quarterly comparable sales decline continue for the third year in a row. Dell Technologies signed multi-year agreement with GE. Donaldson net soared 15% but outlook disappointed. Hooker Furniture agreed to acquire Shenandoah Furniture. Korn/Ferry net surged.[/R]

Tollbooth Index jumped 77.67 or 0.6% to 12,438.13.

Earnings Review

Barnes & Noble, Inc ((BKS)) tumbled 12.1% or 95 cents to $7.85 after the books and magazine retailers said total sales in the first-quarter ending on July 29 declined 6.6% from a year ago to $853 million.

Comparable store sales in the quarter dropped 4.9%.

Net loss in the quarter narrowed to $10.8 million or 15 cents per diluted share from $14.4 million or 20 cents in the same quarter last year.

The books retailer forecasted full-year comparable sales to decline in the low single digits and operating profit of about $180 million.

Brady Corporation ((BRC)) gained 1.7% or 55 cents to $33.70 after the safety products and identification solutions provider stated revenues in the fourth-quarter ending in July increased 2.5% from a year ago to $289.2 million.

Net income in the quarter rose 0.4% to $25.2 million or 48 cents per diluted share from $25.1 million or 49 cents in the same quarter last year.

Conn''s Inc ((CONN)) advanced 3.2% or 60 cents to $19.65 after the consumer goods retailer said total revenues in the second-quarter ending in July dropped 7.9% from a year ago to $366.6 million.

Same store sales in the quarter declined 15.1%.

Net in the quarter swung to profit $4.3 million or 14 cents per diluted share from a loss of $11.9 million or 39 cents in the same quarter last year.

Dell Technologies Inc., formerly Denali Holding Inc ((DVMT)) rose 2 cents to $74.70 after the information technology provider total revenues in the second-quarter ending on August 4 surged 48% from a year ago to $19.3 billion.

Net in the quarter swung to a loss of $946 million or 82 cents per diluted share from profit of $573 million or $2.06 in the same quarter last year.

Separately today Dell signed a multi-year agreement with General Electric Company under the terms GE will use Dell EMC servers, storage, backup, and peripherals, as well as professional services without disclose the financial terms.

Donaldson Company, Inc ((DCI)) plunged 6.5% or $3.02 to $43.63 after the filtration systems manufacturer said revenues in the fourth-quarter ending in July jumped 11.2% from a year ago to $660.1 million.

Net income in the quarter soared 14.6% to $68.2 million or 51 cents per diluted share from $59.5 million or 44 cents in the same quarter last year.

Donaldson forecasted fiscal 2018 sales to jump between 4% and 8% from fiscal 2017 and lifted diluted earnings per share estimate in the range of $1.79 to $1.93 from the reported diluted earnings per share of $1.74 in fiscal 2017.

Destination Maternity Corp ((DEST)) plummeted 9.4% or 11 cents to $1.10 after the maternity apparel retailer stated net sales in the second-quarter ending in July declined 7.7% from a year ago to $98.3 million.

Comparable sales in the quarter decreased 3.4%, including 30.2% increase in e-commerce sales.

Net loss in the quarter widened to $2.8 million or 20 cents per diluted share from $2.5 million or 18 cents in the same quarter last year.

Hooker Furniture Corporation ((HOFT)) soared 9.8% or $4 to $44.75 after the home furnishings provider reported net sales in the second-quarter ending in July surged 14.8% from a year ago to $156.3 million.

Net income in the quarter jumped 47.2% to $7.8 million or 67 cents per diluted share from $5.3 million or 46 cents in the same quarter last year.

Separately today the home furnishings provider agreed to acquire Shenandoah Furniture domestic upholstery manufacturer for $40 million.

Korn/Ferry International ((KFY)) jumped 4.2% or $1.39 to $34.59 after the recruitment and outsourcing services provider said total revenues in the first-quarter ending in July advanced 6.8% from a year ago to $414.9 million.

Net income in the quarter surged to $29 million or 51 cents per diluted share from $3.2 million or 6 cents in the same quarter last year.

RH, formerly Restoration Hardware Holdings, Inc ((RH)) surged 39.5% or $19.54 to $68.96 after the home furnishings retailer said revenues in the second-quarter ending on July 29 soared 13% from a year ago to $615.3 million.

Comparable store sales in the quarter jumped 7%.

Net in the quarter swung to a loss of $7.9 million or 28 cents per diluted share from profit of $6.9 million or 17 cents in the same quarter last year.

The retailer lifted fiscal 2017 net revenues forecast in the range of $2.42 billion to $2.46 billion from the estimated range between $2.4 billion and $2.45 billion and net income to increase between $70 million to $77 million from the prior range of $60 million to $70 million.