U.S. Movers: American Eagle Outfitters, Best Buy, Disney, Foot Locker, HP, Kohl's, Salesforce

Scott Peters
30 May, 2024
New York City

Salesforce declined 17% to $224.60 after the customer management software developer reported slightly lower-than-expected revenue of $9.13 billion. 

The stock was also under pressure after the company's current sales guidance fell short of market expectations. 

Foot Locker surged 14.5% to $25.75 after the apparel and sneaker retailer reported better-than-expected adjusted first quarter earnings of 22 cents per share. 

Total sales in the first quarter declined 2.8% to $1.87 billion from $1.92 billion, net income decreased to $8 million from $36 million, and diluted earnings per share fell to 9 cents from 38 cents a year ago.  

Comparable sales decreased by 1.8%, including a 220 basis-point impact from the continued repositioning of the Champs Sports. Global Foot Locker and Kids Foot Locker comparable sales increased 1.1%.

For the full-year 2024, the company estimated net sales to range between -1% and +1%, and comparable sales to increase between 1% and 3%.  

Walt Disney increased 0.6% to $101.25 after activist investor Nelson Peltz sold his entire stake in the media company for a profit of $1 billion and abandoned his plan to change management. 

Peltz sold his $30 million stake at an average price of $120 per share after he lost the proxy battle to change company management. 

Kohl's Corp. declined 26.2% to $20.15 after the department store chain reported weaker-than-expected quarterly results and outlook. 

The retailer reported revenue of $3.18 billion, and net income swung to an unexpected loss of 4 cents per share. 

The department store chain operator forecast annual sales to fall between 2% and 4%, and earnings per share to range between $1.25 and $1.85, compared to previous estimate between $2.10 and $2.70.  

Best Buy soared 11.5% to $79.94 after the electronics retailer's earnings surpassed market expectations. 

Revenue in the fiscal first quarter ending on May 4 declined to $8.8 billion from $9.5 billion, net income increased to $246 million from $244 million, and diluted earnings per share advanced to $1.13 from $1.11 a year ago. 

Domestic U.S. sales declined 6.8% to $8.2 billion, driven primarily by a 6.3% decrease in comparable sales. 

The company guided fiscal second quarter comparable sales to decline 3% and in the full-year to range between flat and a 3% fall. 

The electronics retailer also guided fiscal 2025 sales to range between $41.3 billion and $42.6 billion and non-GAP diluted earnings per share between $5.75 and $6.20. 

American Eagle Outfitters plunged 9% to $21.85 after the apparel retailer reported weaker-than-expected sales in the fiscal first quarter ending on May 4.  

Total revenue in the first quarter rose 6% to $1.14 billion from $1.08 billion, net income increased to $67.7 million from $18.5 million, and diluted earnings per share rose to 34 cents from 5 cents a year ago.

Store revenue increased by 4%, and digital revenue rose by 12%. 

Revenue at Aerie-branded stores and sites rose 4% to $373 million, with comparable sales up 6%. 

American Eagle branded stores and sites revenue increased 8% to $725 million, with comparable sales growing 7%. 

In the quarter, the company returned $60 million to shareholders through the repurchase of 1.5 million shares for $35 million and a dividend payment of 12.5 cents per share, or $25 million. 

For fiscal 2024, the retailer guided operating income in the range of $445 million and $465 million, reflecting a revenue increase between 2% and 4%. 

The guidance fell short of market expectations, especially in light of blow out quarter reported by Abercrombie & Fitch. 

HP Inc. advanced 11.4% to $36.63 after the fiscal second quarter results were ahead of market expectations. 

Net revenue decreased 0.8% to $12.8 billion from $12.9 billion, net income declined 42% to $0.6 billion from $1.1 billion, and diluted earnings per share fell to 61 cents from $1.06 a year ago. 

In the quarter, the company paid 27.56 per share in dividends and repurchased 3.5 million of its own shares. 

The company estimated diluted earnings per share in the fiscal third quarter between 63 cents and 77 cents and for the fiscal year 2024 between $2.60 and $2.90.