Five Below, Palo Alto Soar; GameStop Net Swing to Loss

Mukesh Buch
07 Sep, 2018
New York City

Barnes & Noble soared as mounting losses lifts of hopes of more changes at the troubled retailer. Five Below reported better-than-expected results. GameStop net swung to a loss. Marvell Technology missed profit estimate. Palo Alto Networks revenues jumped.

[R]12:15 PM New York City, New York – Barnes & Noble soared as mounting losses lifts of hopes of more changes at the troubled retailer. Five Below reported better-than-expected results. GameStop net swung to a loss. Marvell Technology missed profit estimate. Palo Alto Networks revenues jumped.[/R]

Tollbooth Index jumped 140.33 or 0.9% to 16,347.15 and for the year-to-date soared 18.8%.

Earnings Review

Barnes & Noble Inc ((BKS)) soared 15.9% or 73 cents to $5.28 after the books, digital media and educational products retailer said net sales in the first-quarter ending on July 29 declined 6.9% from a year ago to $795 million.

Comparable store sales in the quarter plunged 6.1%.

Net loss in the quarter widened to $17 million or 23 cents per diluted share from $10.8 million or 15 cents in the same quarter last year.

The retailer forecasted fiscal 2019 operating profit in the range of $175 million to $200 million.

The stock surged despite the mounting losses and growing list of troubles at the company that is still struggling to adjust to the challenges from Amazon and other online retailers.

Separately, today Richard Schottenfeld disclosed in regulatory filings that the activist investor has increased stake in the company to 6.9% from 5.7% through various funds under his control, including the Schottenfeld Opportunities Fund II.

Five Below Inc ((FIVE)) surged 17.5% or $20.20 to $135.71 after the discount stores operator reported net sales in the second-quarter ending on August 4 surged 23% from a year ago to $347.7 million.

Comparable store sales in the quarter advanced 2.7%.

Net income in the quarter jumped 49.1% to $25.1 million or 45 cents per diluted share from $16.8 million or 30 cents in the same quarter last year.

For the fiscal 2018, the retailer forecasted net sales between $1.53 billion and $1.54 billion, net income in the range of $141.7 million to $144.9 million and diluted earnings per share in the range of $2.51 to $2.57.

Genesco Inc ((GCO)) increased 1.1% or 50 cents to $47.50 after the footwear, headwear, sports apparel, and accessories retailer said net sales in the second-quarter ending on August 4 advanced 6% from a year ago to $65.9 million.

Comparable store sales in the quarter increased 3%.

Net loss in the quarter narrowed to $0.2 million or break even per diluted share from $3.9 million or 21 cents in the same quarter last year.

Genesco forecasted fiscal 2018 comparable sales to increase between 1% and 3% and diluted earnings per share in the range of $3.05 to $3.45.

GameStop Corp ((GME)) slipped 1% or 17 cents to $15.98 after the video game, consumer electronics retailer stated net sales in the second-quarter ending on August 4 dropped 2.4% from a year ago to $1.7 billion.

Comparable store sales in the quarter decreased 0.5%.

Net in the quarter swung to a loss of $24.9 million or 24 cents per diluted share from profit of $22.2 million or 22 cents in the same quarter last year.

GameStop forecasted fiscal 2018 total sales to decline between 2% and 6% and comparable store sales are likely to range between flat and drop 5% and diluted earnings per share in the range of $3 to $3.35.

Marvell Technology Group Ltd ((MRVL)) jumped 4.9% or 96 cents to $20.42 after the integrated circuits maker reported revenues in the second-quarter ending on August 4 jumped 10% from a year ago to $665.3 million.

Net income in the quarter tumbled to $6.8 million or 1 cent per diluted share from $165.3 million or 33 cents in the same quarter last year.

The integrated circuits maker forecasted fiscal third-quarter revenues in the range of $825 million and $865 million and gross margin between 44% and 45% and diluted loss per share in the range of 8 cents to 4 cents.

Palo Alto Networks Inc ((PANW)) advanced 5.7% or $12.45 to $232.82 after the network security provider reported revenues in the fourth-quarter ending in July soared 29% from a year ago to $658.1 million.

Net loss in the quarter narrowed to $2.3 million or 2 cents per diluted share from $38.2 million or 42 cents in the same quarter last year.

The cyber security provider forecasted fiscal first-quarter revenues between $625 million and $635 million, representing growth of 25% to 27% from a year ago period and diluted earnings per share in the range of $1.04 to $1.06.

Zumiez Inc ((ZUMZ)) gained 1.9% or 58 cents to $29.73 after the specialty retailer stated net sales in the second-quarter ending on August 4 jumped 13.9% from a year ago to $219 billion.

Comparable store sales in the quarter soared 6.3%.

Net in the quarter swung to profit $4.4 million or 17 cents per diluted share from a loss of $0.6 million or 2 cents in the same quarter last year.