Movers: Advance Auto Parts, Carnival Corp, Krispy Kreme, Lowe's Companies, Similarweb, Target, TJX

Scott Peters
16 Nov, 2022
New York City

Advance Auto Parts plunged 16.3% to $153.77 after the retailer reported mixed quarterly results and reiterated weak annual outlook.

Net sales in the third quarter increased 0.8% to $2.64 billion  and comparable store sales declined 0.7%. 

Gross profit margin decreased 44 basis points to 44.7% of net sales. 

Net income in the quarter dropped to $111 million from $169.8 million and diluted earnings per share fell to $1.84 from $2.68 a year ago. 

In the third quarter, the company repurchased 0.4 million shares of its common stock at an aggregate  cost of $75.0 million, or an average price of $168.93 per share. 

The retailer reiterated its annual sales outlook between $11.0 billion and $11.2 billion and comparable store sales to range between flat and 0.1% decline. The company also revised its free annual cash flow outlook to minimum $300 million from minimum $700 million. 

Carnival Corp dropped 12.9% to $9.71 after the cruise operators said it plans to offer $1 billion of convertible debt as part of its debt refinancing plan.

The company priced its 5.75% senior notes convertible offering at equivalent to $13.39 a share, 20% premium of the November 15 , 2022 closing prices. The notes will mature at the end of December 2027. 

Krispy Kreme Inc jumped 0.7% to  $14.59 after the bagel chain reported a rise in third quarter sales and a wider loss. 

Revenue in the third quarter increased 10.1% from a year ago to $377.5 million, or 13.4% in constant currency or organic revenue increase of 12.0%. 

Net loss in the quarter widened to $11.8 million from $8.1 million and diluted loss per share increased to 8 cents to 4 cents. 

The company guided full-year 2022 net revenue in the range of $1.49 billion to $1.52 billion and capital expenditure between $105 million and $110 million, about 7% of total sales. 

Lowe's Companies soared 5.5% to $220.18 and the home improvement retailer lifted its full-year earnings outlook and said U.S. comparable sales rose 3%.

Total sales in the third quarter increased to $23.5 billion from $22.9 billion a year ago and total comparable sales increased 2.2% and the U.S. comparable store sales rose 3.0%. 

Net income in the quarter dropped to $154 million from $1.78 billion and diluted earnings per share fell to 25 cents to $2.74 a year ago. 

Excluding pre-tax non-cash impairment charges of $2.1 billion linked to the Canadian operations, third quarter quarter earnings were  $3.27 a share. 

The company guided full-year 2022 sales outlook between $97 billion and $98 billion and comparable sales are estimated to fall in the range of flat to a decline of 1.0%. 

Sales in the 53rd week of 2022 are estimated to fall between $1.0 billion and $1.5 billion. 

Similarweb Ltd plunged 23.5% to $5.06 after the company reported larger loss in the third quarter and said it plans to cut its global workforce by 10%. 

Revenue in the quarter increased 41% to $50 million from $35.6 million a year ago. 

Net loss in the third quarter expanded to $21 million from $17.3 million and diluted loss per share rose to 28 cents from 23 cents a year ago. 

The average customer revenue increased 15% to $51,570 on 21% increase in number of customers to 3,911.  

The company lowered its fourth quarter revenue in the range of $50.5 million and $50.9 million, an increase of 26% from the mid-point of the range.  

Target Corp plunged 13.4% to $154.79 after the retailer said third quarter earnings fell, lowered its fourth quarter outlook and estimated weak holiday sales.

Sales in the third quarter ending on October 29, 2022 increased 3.3% to $26.1 billion from $25.3 billion a year ago. 

In the quarter, net earnings plunged 52.1% to $712 million from $1.49 billion and diluted earnings per share fell to $1.54 from $3.04 a year ago. 

Comparable sales in the third quarter increased 2.7% on top of 12.7% in the previous year's period, driven by 1.4% increase in store traffic and 1.3% increase in average ticket. 

The company said sales softness is likely to persist in the fourth quarter and estimated "centered around a low-single digit decline in comparable sales."

The company said it plans to cut costs between $2 billion and $3 billion over the next three years after sales have surged 40% since 2019.

Inventories rose at a slower pace to $17.1 billion at the end of the third quarter from $14.96 billion a year ago. 

TJX Companies added 3.7% to $78.09 after the close-out retailer reported a decline in sales but better-than-expected earnings. 

Third quarter revenue declined 3% to $12.2 billion from $12.5 billion a year ago. 

Net income in the third quarter inched up to $1.06 billion from $1.02 billion and diluted earnings per share increased to 91 cents from 84 cents a year ago. 

U.S. same store sales in the quarter declined 2% after rising 16% in the quarter a year ago, driven by 16% fall in Home Goods and 3% increase in combined sales at TJ Maxx and Marshalls.