Movers: Costco Wholesale, Gap Inc Marvell Technology, RH, Ulta Beauty

Scott Peters
26 May, 2023
New York City

Costco Wholesale Corporation declined 0.3% to  $485.31 after the retailer reported mixed quarterly results. 

Net sales in the fiscal third quarter ending in May increased 1.9% to $52.6 billion from $51.6 billion and comparable sales at the U.S. stores excluding gasoline sales increased 1.8%. 

Total comparable sales across all regions, excluding gasoline sales, increased 3.5% and e-commerce sales declined 9.0%. 

Net income attributable to shareholders decreased to $1.3 billion from $1.35 billion and diluted earnings per share fell to $2.93 from $3.04 a year ago.   

Ulta Beauty plunged 11.3% to $431.17 despite the company reporting higher revenue and earnings in the first quarter. 

Net sales in the first quarter increased 12.3% to $2.6 billion from $2.3 billion and comparable sales slowed to 9.1% from 18.0% a year ago. 

Net income increased to $347.1 million from $331.4 million and diluted earnings per share rose to $6.88 from $6.30 a year ago. 

The retailer lifted its full year sales outlook slightly and reiterated its earnings per share. 

Full year 2023 sales range was revised higher to $11.0 billion from $11.1 billion from the previous range between $10.95 and $11.05 billion. 

The company reiterated its comparable sales growth range between 4% and 5% and diluted earnings per share between $24.70 and $25.40. 

RH declined 5.4% to  $240.86 after the home improvement retailer reported better-than-expected sales and earnings in the fiscal first quarter. 

Revenue in the first quarter declined to $739 m.1illion from $957.3 million  and net income fell to $41.9 million from $200.7 million and diluted earnings per share fell to $1.76 from $7.22 a year ago. 

However, the retailer estimated higher-than-expected markdowns "to clear discontinued inventory" in the second quarter and estimated weaker-than-expected fiscal second quarter revenue.  

The retailer raised revenue outlook for fiscal 2023 to a range of $3.0 to $3.1 billion and lowered outlook for adjusted operating  margin to a range of 14.5% to 15.5%, which includes an approximate 150 basis point drag due to the ramp up of global  expansion. 

Marvell Technology Inc soared 23.7% to $61.45 after the advanced semiconductor company delivered first quarter results ahead of expectations and said second quarter sales are expected to accelerate.

Revenue in the fiscal first quarter ending in April declined 9% to $1.32 billion and net loss increased to $168.9 million from $165.7 million and diluted loss per share was flat at 20 cents from a year ago. 

The company estimated second quarter revenue of $1.33 billion with a band of 5% and gross margin between 44.3% and 46.8%. 

Gap Inc soared 14.2% to $8.48 after the struggling apparel retailer reported improvement in operating margin and a decline in air shipment expenses. 

The retailer reported net sales in the first quarter declined 6% to $3.2 billion and 3% decline in comparable sales. 

Net loss in the quarter shrank to $18 million from $144 million and diluted loss per share fell to 5 cents from 44 cents a year ago.