Market Movers: Bath & Body Works, Bed Bath & Beyond, BJ's Wholesale, Cisco, Estee Lauder, Kohl's

Barry Adams
18 Aug, 2022
New York City

Benchmark indexes rebounded from early doldrums after investors digested a fresh batch of earnings and economic news. 

Initial jobless claims at the last week edged higher but remained near the high for the year so far. 

Jobless claims fell 2,000 from the previous week to 250,000 for the week ending on August 13, the Labor Department reported Thursday. 

The four-week moving average of claims declined 2,750 to 246,750.  

The sale of existing homes declined 5.9% in July from June and dropped 20% from a year ago as home prices remain stubbornly high, the National Association of Realtor reported Thursday. 

The S&P 500 index edged up 0.3% to 4,286.09 and the Nasdaq Composite index rose 0.4% to 12,990.70 

Futures of crude oil increased $1.54 to $89.64 and natural gas rose a fraction to $9.25 a thermal unit. 

The yield on 10-year Treasury notes decreased to 2.84% and 2-year notes fell to 3.22%.  

BJ's Wholesale Club Holdings Inc increased 8.4% to $74.90 after the company said  total comparable club sales increased 19.8% and rose 7.6% excluding gasoline sales from a year ago. 

Total sales increased 22.4% to $5 billion and membership fees rose 11.3% to $98.7 million. 

Net income increased 27% to $141 million from $111 million a year ago and diluted earnings per share rose to $1.03 from 80 cents a year ago. 

BJ's repurchased 353,000 shares of its common stock, totaling $22.8 million in the second quarter.

Bath & Body Works Inc declined a fraction to $40.16 after the personal care products retailer said second quarter sales declined 5% to $1.62 billion from $1.70 billion a year ago. 

Net income in the second quarter declined to $120 million from $374.2 million a year ago and diluted earnings per share fell to 52 cents from 77 cents a year ago. 

Bath & Body Works forecasted third quarter earnings from continuing operations a diluted share between $0.10 and $0.20. 

For fiscal 2022, the company estimated earnings from continuing operations a diluted share between $2.70 and $3.00.

The company said it also eliminated 130 positions to lower its operating costs and become more efficient. 

Through its reorganization, the company expects to save approximately $30 million in the second-half of 2022, prior to any impact from severance. 

The company expects to record severance and other charges of approximately $6 million in the third quarter of 2022 related to the reorganization. 

Bed Bath & Beyond plunged 23.8% to $17.57 after investor said in a regulatory filing that he intends to sell 7.78 million shares of the homewares retailer. 

Cohen's earlier purchase of long-dated call options had fueled a two-week stock rally.   

Cisco Systems increased 6.8% to $49.85  after the networking equipment maker reported better-than-expected revenues and earnings. 

Cisco said revenues in the fiscal year fourth quarter ending in July were flat at $13.1 billion and net income declined 6% to $2.8 billion from a year ago. 

Diluted earnings per share fell to 68 cents from 71 cents a year ago. 

The networking gear maker estimated revenues in the first quarter ending in October to increase between 2% and 4% and earnings per share between 64 cents and 68 cents. 

Cisco also estimated full-year revenues to rise between 4% and 6% and earnings per share to fall between $2.77 and $2.88.    

Estee Lauder Companies increased 1.9% to $281.96 after the cosmetic maker said second quarter net sales 10% to $3.56 billion from $3.94 billion a year ago. Organic net sales decreased 8%.

Covid-19 restrictions and lockdowns impacted sales in China and overwhelmed the rising sales in the Americas. 

Business closure in Russia also impacted sales in Europe and the Middle East. 

Net income in the quarter plunged to $52 million or 14 cents a share from $1.02 billion or $2.76 a share. 

Kohl's Corporation declined 4.8% to $32.20 after the retailer said second quarter comparable sales decreased 7.7% and net sales decreased 8.5% to $4.09 billion. 

Net income in the period plunged to $143 million from $382 million a year ago. 

Diluted earnings per share declined to $1.11 from $2.48 a year ago. 

Kohl's revised lower its sales decline to range between 5% and 6% and earnings per share in the range between $2.80 and $3.20 excluding non-recurring items. 

Home builders fell after the release of July existing home sales data. 

Lennar, D R Horton, NVR Homes, Centex edged fractionally lower.