Oracle Plunges on Outlook Worries, Duluth Holdings Tumbles

Mukesh Buch
20 Mar, 2018
New York City

The Children

[R]12:55 PM New York City, New York – The Children’s Place net swung to a loss and signed license agreement with China-based apparel maker. Duluth tumbled on weak fiscal forecast. Jefferies net swung to a loss but revenues jumped. Oracle net swung to a loss but cloud segment revenues jumped.[/R]

The Children’s Place, Inc ((PLCE)) plunged 6.2% or $8.60 to $130.35 after the specialty retailer reported net sales in the fourth-quarter ending on February 3 surged 9.4% from a year ago to $570 million.

Comparable store sales in the quarter soared 8.2%.

Net in the quarter swung to a loss of $9.9 million or 57 cents per diluted share from profit of $34.2 million or $1.86 in the same quarter last year.

In fiscal 2018, the retailer forecasted diluted earnings per share in the range of $7.95 to $8.20 and operating margin of 12% and diluted earnings per share of $12 by the end of 2020.

Separately today the retailer signed a licensing agreement with China-based rival Zhejiang Semir Garment Co. Ltd covering Mainland China, Taiwan, Hong Kong and Macau.

Duluth Holdings Inc ((DLTH)) tumbled 13.9% or $2.53 to $16.32 after the casual, work-wear, and accessories retailer said net sales in the fourth-quarter ending on January 28 soared 24.7% from a year ago to $217.8 million.

Net income in the quarter surged 39.3% to $19.5 million or 60 cents per diluted share from $14 million or 43 cents in the same quarter last year.

The life style retailer forecasted fiscal 2018 net sales growth in the range of $555 million to $575 million and operating profit between $51 million and $54 million and diluted earnings per share in the range of 79 cents to 84 cents.

Jefferies Group LLC, the investment and banking services provider said revenue in the first-quarter ending in February advanced 3.2% from a year ago to $821.2 million.

Net in the quarter swung to a loss of $60.8 million from profit of $114 million in the same quarter last year.

Oracle Corporation ((ORCL)) declined 10% or $5.21 to $46.74 after the enterprise solution provider reported total revenues in the third-quarter ending in February jumped 6% from a year ago to $9.8 billion.

Net in the quarter swung to a loss of $4 billion or 98 cents per diluted share from profit of $2.2 billion or 53 cents in the same quarter last year.

Cloud and on-premise software revenues soared 8% to $8 billion and cloud software as a service revenues surged 33% to $1.2 billion.