U.S. Movers: Docusign, Kroger, Plant Labs, RH

Scott Peters
08 Sep, 2023
New York City

Stocks turned lower on Friday and market indexes extended weekly losses amid growing uncertainty related to Fed's interest rate policy. 

The S&P 500 index traded up 0.2% to 4,459.15 and the Nasdaq Composite fell 0.3% to 13,787.38. 

Kroger Company declined 1.1% to $45 after the largest independent grocery retail chain reported mixed second quarter results. 

Revenue in the second quarter declined to $33.8 billion from $34.6 billion and excluding fuel, sales increased 1% from a year ago to $29.5 billion. 

Kroger defines identical sales, excluding fuel, as sales to retail customers, including sales from all departments at identical supermarket  locations, Kroger Specialty Pharmacy businesses, jewelry and ship-to-home solutions. 

Kroger defines a supermarket as identical when it has  been in operation without expansion or relocation for five full quarters. 

The company swung to a net loss of $180 million from a profit of $731 million and diluted earnings per share swung to ($0.25) from $1.0 a year ago. 

Separately, the company said it settled most claims related to opioid for $1.2 billion. 

The company said the settlement and the payment terms will not affect Kroger’s ability to complete its proposed merger with Albertsons and the company still expects to reduce its net total debt to adjusted EBITDA ratio to 2.50 within 18 – 24 months after the close of the merger. 

Planet Labs PBC declined 7.7% to $2.84 after the satellite imagery company reported weaker-than-expected quarterly results and forecasted revenue below market expectations. 

Revenue in the second quarter ending in August increased 11% to $53.8 million and net loss shrank to $37.9 million from $39.4 million and diluted loss per share declined to 14 cents from 15 cents a year ago. 

For the third quarter ending in October, the company estimated revenue to increase 11% between $54 million and $56 million. 

The satellite imagery company estimated fiscal full-year revenue between $214 million and $223 million, an increase of 15% at the midpoint.  

DocuSign Inc jumped 1% to $52.65 after the company reported better-than-expected revenue in its latest quarter. 

Revenue in the second quarter ending in July increased 11% to $687.7 million from $622.2 million and the company swung to a profit of $7.4 million from a loss of $45 million and diluted earnings per share was 4 cents compared to (22 cents) a year ago. 

Free cash flow increased to $183.6 million from $105.5 million in the same period last year.

RH dropped 9.1% to $335 after the home goods retailer forecasted weak third quarter outlook citing weakness in the luxury residence market on elevated mortgage rates. 

Revenue in the second quarter ending in July decreased to $800 million from $991.6 million and net income declined to $76.4 million from $122 million and diluted earnings per share fell to $3.36 from $4.54 a year ago. 

The company forecasted third quarter revenue between $740 and $760 million and adjusted operating margin in the range of 8% to 10%.  

The retailer raised to the low end of revenue guidance for the year to a range of $3.04 billion to $3.1 billion and reiterated its outlook for adjusted operating margin in the range of 14.5% to 15.5%. 

RH estimate the 53rd week will result in revenues of approximately $60 million.