U.S. Movers: ChargePoint Holdings, Chewy, Dollar General, GameStop

Scott Peters
07 Dec, 2023
New York City

Chewy declined 10.8% to $17.25 after the online pet food and products store reported weaker-than-expected revenue and the company swung to a loss in the quarter. 

Revenue in the fiscal third quarter ending in October rose 8.2% to $2.73 billion from $2.53 billion, and the company swung to a net loss of $35.8 million from a profit of $2.3 million, and diluted earnings per share swung to a loss of 8 cents from a profit of 1 cent a year ago.

Gross margin expanded 10 basis points from a year ago to a record high of 28.5%, and autoship customer sales increased 12.8% to $2.1 billion, representing 76.4% of total sales.

ChargePoint Holdings fell 3.9% to $1.97 after the electric vehicle infrastructure company reported weaker-than-expected revenue of $110 million in the third quarter.

Revenue in the fiscal third quarter ending in October declined 12% to $110.3 million from $125.3 million, net loss expanded to $158.2 million from $84.5 million, and diluted loss per share increased to 43 cents from 25 cents a year ago.

The company attributed the revenue shortfall to the challenging macroeconomic conditions.

The charging infrastructure company raised $233.1 million through a stock offering in the third quarter and bolstered its balance sheet.

Dollar General Corp. increased 2.8% to $137.70 after the deep discount retailer reported better-than-expected quarterly results and reaffirmed its fiscal year outlook for earnings and comparable sales.

Revenue in the fiscal third quarter ending on November 3 increased 2.4% to $9.7 billion, and same-store sales declined 1.3%.

Net income in the third quarter dropped 47.5% to $276.2 million from $526.2 million, and diluted earnings per share decreased 45.9% to $1.26 from $2.33 a year ago.

As of November 3, 2023, total merchandise inventories, at cost, were $7.4 billion compared to $7.1 billion as of October 28, 2022, a decrease of 1.8% on a per-store basis.

The company did not repurchase any of its shares in the quarter, and $1.4 billion is available for future purchases at the end of the fiscal third quarter.

The company's board of directors declared a quarterly cash dividend of 59 cents payable on January 23 to shareholders on record on January 9.

The company forecasted fiscal year 2023 same store sales to range between flat and a decline of 1.0%, and net sales growth between 1.5% and 2.5%, including one fewer week this fiscal year.

The retailer estimated diluted earnings per share to decline between 29% and 34% and range between $7.10 and $7.60.

GameStop Corp. decreased 8.8% to $13.54 after the specialty retailer reported a slight decline in quarterly sales from a year ago.

Revenue in the fiscal third quarter ending in October declined to $1.078 from $1.186 billion, net loss shrank to $3.1 million from $94.7 million, and diluted loss per share fell to 1 cent from 31 cents a year ago.