L Brands Lowers Outlook, Williams-Sonoma Beats Estimates

Mukesh Buch
23 Aug, 2018
New York City

Children''s Place lifted fiscal earnings outlook. Hormel Foods lowered sales estimates. L Brands lowered earnings estimates after profit declined 29%. Stage Stores net loss widened. Williams-Sonoma reported stronger second-quarter results.

[R]12:55 PM New York City, New York – Children''s Place lifted fiscal earnings outlook. Hormel Foods lowered sales estimates. L Brands lowered earnings estimates after profit declined 29%. Stage Stores net loss widened. Williams-Sonoma reported stronger second-quarter results.[/R]

Tollbooth Index edged up 5.40 to 16,141.29 but for the year-to-date soared 17.3%.

Earnings Review

The Children''s Place Inc ((PLCE)) slumped 2.4% or $3.25 to $134.25 after the specialty retailer said net sales in the second-quarter ending on August 4 surged 20.1% from a year ago to $448.7 million.

Comparable store sales in the quarter soared 13.2%.

Net income in the quarter plunged 47.5% to $7.5 million or 45 cents per diluted share from $14.3 million or 79 cents in the same quarter last year.

The specialty retailer lifted fiscal 2018 diluted earnings per share forecast in the range of $8.09 to $8.29 from the earlier estimate of $7.95 to $8.20 and net sales in the range of $1.95 to $1.96 billion.

Hormel Foods Corp ((HRL)) slumped 3.2% or $1.24 to $37.27 after the food products manufacturer reported total sales in the third-quarter ending on July 29 jumped 6.9% from a year ago to $2.4 billion.

Net income in the quarter soared 15.2% to $210.2 million or 39 cents per diluted share from $182.5 million or 34 cents in the same quarter last year.

Hormel Foods lowered fiscal 2018 revenues forecast between $9.40 billion and $9.60 billion from the earlier estimate of $9.70 billion to $10.10 billion and diluted earnings per share of about $1.81 to $1.95.

L Brands Inc ((LB)) tumbled 11.2% or $3.57 to $28.32 after the women''s personal care and beauty products retailer reported net sales in the second-quarter ending on August 4 soared 8% from a year ago to $2.9 billion.

Comparable store sales in the quarter increased 3%.

Net income in the quarter declined 28.7% to $99 million or 36 cents per diluted share from $138.9 million or 38 cents in the same quarter last year.

The personal care products retailer lowered fiscal 2018 diluted earnings per share forecast in the range of $2.45 to $2.70 from the earlier estimate of $2.70 to $3.

Stage Stores Inc ((SSI)) plunged 9.6% or 22 cents to $2.08 after the specialty department stores operator stated net sales in the second-quarter ending on August 4 fell 2.1% from a year ago to $369 million.

Comparable store sales in the quarter slid 0.2%.

Net loss in the quarter widened to $16.9 million or 60 cents per diluted share from $6.3 million or 23 cents in the same quarter last year.

The retailer reaffirmed fiscal 2018 net sales forecast between $1.61 billion and $1.64 billion and Comparable sales growth between flat and increase of 2% and net loss of between $41 million and $34 million and diluted loss per share between $1.45 and $1.20.

Stein Mart Inc ((SMRT)) declined 9.9% or 30 cents to $2.74 after the discount department stores operator said net sales in the second-quarter ending on August 4 were flat from a year ago to $310.9 million.

Comparable store sales in the quarter increased 0.7%.

Net loss in the quarter narrowed to $1.1 million or 2 cents per diluted share from $13 million or 28 cents in the same quarter last year.

Williams-Sonoma Inc ((WSM)) surged 13.8% or $8.63 to $71.29 after the kitchen wares and home furnishings retailer said net revenues in the second-quarter ending in July advanced 6.1% from a year ago to $1.3 billion.

Comparable store sales in the quarter increased 4.6%.

Net income in the quarter jumped 4.1% to $51.7 million or 62 cents per diluted share from $52.9 million or 61 cents in the same quarter last year.

The consumer retailer forecasted fiscal 2018 net revenue in the range of $5.57 billion to $5.67 billion and comparable store sales between 3% and 5% and diluted earnings per share between $4.26 and $4.36.