U.S. Movers: Applied Materials, Bath & Body Works, ChargePoint, Gap

Scott Peters
17 Nov, 2023
New York City

Gap Inc. jumped 18.7% to $16.21 after the apparel retailer reported quarterly results.

Revenue in the fiscal third quarter decreased 7% to $3.8 billion from $4.0 billion, net income dropped to $218 million from $282 million, and diluted earnings per share fell to 58 cents from 77 cents a year ago.

The decline in net sales included a negative impact of 2 percentage points on the sales of Gap China.

Comparable sales declined 2%, and online sales fell 8% from the previous year and represented 38% of total sales.

Gross margin improved 390 points to 41.3% after commodity prices eased and the promotional environment improved.

The company is estimating fourth quarter net sales, inclusive of the 14th week, "to be at to slightly negative" compared to last year's net sales of $4.2 billion as positive signs at Old Navy and Gap balance the weakness in Athleta and Banana Republic. 

Bath & Body Works edged higher by 0.8% after falling 7% in the previous session to $30.10 after the specialty retailer estimated lower sales in the fiscal year.

Revenue in the third quarter declined 2.6% to $1.56 billion from $1.60 billion, net income advanced to $119 million from $91 million, and diluted earnings per share rose to 52 cents from 40 cents a year ago.

The company estimated full-year sales to decline between 2.5% and 4.0% from $7.56 billion and diluted earnings per share between $2.99 and $3.19.

ChargePoint Holdings plunged 30% to $2.19 after the company lowered its third-quarter revenue estimate and announced a management shakeup.

The company lowered its third-quarter revenue estimate to between $108 million and $113 million from the previous range of between $150 million and $165 million.

The company blamed the revenue shortfall on weak macroeconomic conditions and delays in fleet and commercial electric vehicle delivery.

Applied Materials dropped 7.2% to $143.55 after the company reported quarterly earnings, but a criminal investigation by the Department of Justice for shipments to China weighed on the stock.

Revenue in the fiscal fourth quarter ending in October was flat at $6.7 billion, and gross margin improved to 47.1% from 45.9% a year ago.

Net income advanced to $2.0 billion from $1.6 billion, and diluted earnings per share rose to $2.38 from $1.35 a year ago.

In fiscal 2023, the company generated a record $8.70 billion in cash from operations and distributed $3.16 billion to shareholders, including $2.19 billion in share repurchases and $975 million in dividends.

In the first quarter of fiscal 2024, Applied expects net sales to be approximately $6.47 billion, with a band of $400 million, and adjusted diluted earnings per share between $1.72 and $2.08.