Movers: Abercrombie & Fitch, Autodesk, Dollar General, Dollar Tree, Peloton, Victoria's Secret

Barry Adams
25 Aug, 2022
New York City

Stocks on Wall Street opened higher and the GDP contraction in the second quarter was revised to a smaller decline than previously estimated. 

The S&P 500 index increased .06% to 4,165.63 and the Nasdaq Composite index added 0.9% to 12,532.07.  

Futures of crude oil decreased 22 cents to $94.67 a barrel and natural gas decreased 9 cents to $9.24 a thermal unit. 

The yield on 10-year Treasury notes held stable at 3.10% and 2-year notes were nearly unchanged at 3.38%. 

Abercrombie & Fitch declined 4.1% to $17.87 after the apparel retailer posted an unexpected quarterly loss. 

The apparel retailer said second quarter revenues declined 7% to $805 million and gross margin rate declined 730 basis points to 57.9%, driven by higher product costs and commodity inflation partially offset by higher average unit retail at Abercrombie.

In the second quarter, the retailer swung to a loss of $14.7 million or 33 cents a diluted earnings per share from a profit of $110.5 million or $1.33 a share a year ago. 

Abercrombie & Fitch lowered its net sales outlook to be down mid-single-digits from $3.7 billion in 2021 compared to previous outlook of flat to up 2%. 

Autodesk Inc increased 1.5% to $217.64 after the design software developer said second quarter revenues increased 17% to $1.2 billion. 

Net income in the second quarter increased to $186 million from $115 million a year ago and diluted earnings per share rose to 86 cents from 52 cents a year ago. 

The company said as it moves from products to platforms and capabilities the demand for its products remains "robust."

Revenues for the fiscal full-year 2023 are estimated between $4.985 and $5.035, an increase between 14% and 15% from a year ago. 

Dollar General Corp was nearly unchanged at $247.09 after the deep discount retailer reported stronger quarterly results. 

Revenues in the second quarter fiscal year 2022 ending in July increased 9.0% to $9.4 billion on a comparable same store sales rise of 4.6%. 

Net income in the second quarter increased 6.4% to $678 million from $637 million a year ago. Diluted earnings per share rose to $2.98 from $2.69 a year ago. 

Total merchandise inventories rose 25.1% to $6.9 billion compared to $5.3 billion as of July 30, 2021.

Dollar Tree, Inc plunged 10.9% to $148.02 after the deep discount retailer posted second quarter total sales increased 6.7% to $6.77 billion. 

Same store sales increased 4.9% driven by 7.5% increase at Dollar Tree banner stores and 2.0% rise at Family Dollar stores. 

Net income increased 27.4% to $359.9 million and diluted earnings per share for the quarter rose 30.1% to a second quarter company record $1.60, compared to $1.23 a year ago. 

The company tightened its full-year sales outlook between $27.85 billion and $28.10 billion from the previous range between $27.76 and $28.14 billion. 

Full-year diluted earnings per share are also revised lower to fall between $7.10 and $7.40 from the earlier guidance between $7.80 and $8.20.  

Peloton Interactive plunged 20.2% to $10.76 after the fitness equipment maker reported a larger-than-expected quarterly loss and said business is likely to remain challenging in 2023. 

Total revenues declined 28% to $678.7 million after fitness equipment sales plunged 55% to $297 million and subscription revenues rose 36% to $383 million. 

Net loss in the quarter soared four-fold to $1.24 billion and free cash outflow improved to $412 million from $678 million a year ago. 

Victoria's Secret & Company increased 2.6% to $39.32 after the intimate apparel retailer said second quarter sales declined 5.7% to $1.5 billion from $1.61 billion a year ago.  

Second quarter net income declined to $70 million or $0.83 a diluted share compared to $151 million or $1.71 a share a year ago.  

Same store sales in the second quarter declined 7% compared to an increase of 16% in the quarter a year ago.  

Online health services providers rose on news that Amazon.com is planning to shut its internal online health services for its employees. 

Teladoc Health increased 2.5%, Amwell gained 5.5% and Hims and Hers Health added 2.6%.