Burlington Stores Lifts Outlook; Dollar Tree and Dollar General Drop

Mukesh Buch
31 May, 2018
New York City

American Eagle reported record first-quarter revenues. Ciena fell after net plunged 63%. Burlington Stores soared on improved outlook. Dollar Tree lowered fiscal outlook. Dollar General missed same store sales.

[R]12:45 PM New York City, New York – American Eagle reported record first-quarter revenues. Ciena fell after net plunged 63%. Burlington Stores soared on improved outlook. Dollar Tree lowered fiscal outlook. Dollar General missed same store sales.[/R]

Tollbooth Index increased 69.01 0.5% to 15,482.61 but for the year-to-date jumped 12.4%.

Earnings Review

American Eagle Outfitters Inc ((AEO)) slipped 1.8% or 41 cents to $22.20 after the apparel and accessory retailer reported revenues in the first-quarter ending on May 5 soared 8% from a year ago to $823 million.

Comparable store sales in the quarter surged 9%.

Net income in the quarter jumped 58.3% to $39.9 million or 22 cents per diluted share from $25.2 million or 14 cents in the same quarter last year.

The retailer said in the quarter its inventories at cost jumped 11% to $404 million and capital expenditures of about $47 million.

American Eagle reaffirmed comparable sales forecast to increase in the mid-single digits and diluted earnings per share in the range of 27 cents to 29 cents.

Burlington Stores, Inc ((BURL)) soared 8.4% or $11.44 to $147.97 after the discount retailer reported total sales in the first-quarter ending on May 5 jumped 12.8% from a year ago to $1.5 billion.

Comparable store sales in the quarter jumped 4.8%.

Net income in the quarter soared 58% to $82.6 million or $1.20 per diluted share from $52.4 million or 73 cents in the same quarter last year.

The retailer forecasted fiscal 2018 total sales growth in the range of 9.7% to 10.5% and comparable store sales to increase between 2% and 3%.

Burlington lifted fiscal 2018 diluted earnings per share forecast between $5.90 and $6 from the earlier estimate of $5.73 to $5.83.

Ciena Corporation ((CIEN)) slumped 2.2% or 53 cents to $23.53 after the communication equipment provider said revenues in the second-quarter ending in April rose 3% from a year ago to $730 million.

Net income in the quarter plunged 63.4% to $13.9 million or 9 cents per diluted share from $38 million or 25 cents in the same quarter last year.

Dollar Tree, Inc ((DLTR)) plummeted 11.5% or $11.08 to $85.27 after the discount retailer reported net sales in the first-quarter ending on May 5 advanced 5% from a year ago to $5.6 billion.

Same store sales in the quarter increased 1.4% and same store sales in the Dollar Tree branded stores increased 4% but same store sales in the Family Dollar stores decreased 1.1%.

Net income in the quarter declined 20% to $160.5 million or 67 cents per diluted share from $200.5 million or 85 cents in the same quarter last year.

Dollar Tree lowered fiscal 2018 net sales forecast between $22.73 billion to $23.05 billion from the earlier estimate of $22.70 billion to $23.12 billion and same store sales to increase low single-digit and diluted earnings per share forecast between $4.80 and $5.10 from the earlier estimate of $5.25 to $5.60.

Dollar General Corporation ((DG)) plunged 7.8% or $7.48 to $89.04 after the discount retailer reported net sales in the first-quarter ending on May 4 soared 9% from a year ago to $6.1 billion.

Same store sales in the quarter advanced 2.1%.

Net income in the quarter surged 30.8% to $365 million or $1.36 per diluted share from $279 million or $1.02 in the same quarter last year.

The discount retailer forecasted fiscal 2018 net sales to jump 9% and same-store sales growth in the range of mid-two percent range and diluted earnings per share in the range of $5.95 to $6.15.

Donaldson Company Inc ((DCI)) dropped 1.1% or 54 cents to $47.08 after the filtration systems maker said sales in the third-quarter ending in April surged 15.1% from a year ago to $700 million.

Net income in the quarter jumped 16.3% to $69.9 million or 53 cents per diluted share from $60.1 million or 45 cents in the same quarter last year.