Abercrombie & Fitch, Saks, Costco Fall

Mayank Mehta
04 Jun, 2009
New York City

U.S. retailers reported weaker than expected sales in May. Same store sales declined sharply at teenage retailers more than anticipated. Abercrombie & Fitch sales plunged 28%. American Eagle Outfitters sales declined 7%. Costco Wholesale sales excluding gasoline at U.S. locations increased 1%.

[R]10:40AM New York – U.S. retailers reported weaker than expected sales in May. Same store sales declined sharply at teenage retailers more than anticipated. Abercrombie & Fitch sales plunged 28%. American Eagle Outfitters sales declined 7%. Costco Wholesale sales excluding gasoline at U.S. locations increased 1%.[/R]

Abercrombie & Fitch Co led the decliners in the S&P 500 index with a loss of 10.1%. Dynamex Inc third quarter profit declines. SAIC, Inc first quarter profit rises, beats estimates.[/R]

Of the stocks in S&P 500 index, 315 increased, 177 declined and 7 were unchanged.

Abercrombie & Fitch Co led the decliners in the S&P 500 index with a loss of 10.1% followed by losses in The Gap, Inc of 6.4%, in Limited Brands, Inc of 4.9%, in Family Dollar Stores, Inc of 4.7% and in Nordstrom, Inc of 4.1%.

Fifth Third Bancorp led gainers in the S&P 500 index with a rise of 7.3% followed by gains in of KeyCorp 6.9%, in Dynegy Inc of 6.7% and Teradyne, Inc of 6.5%.

Other Movers

Abercrombie & Fitch ((ANF)) plunged 10.5% to $28.30 after teen age retailer reported same stores sales declined 28% in May and total sales fell 22%.

Collective Brands, Inc ((PSS)) added 3.6% or 58 cents to $16.47 after the footwear retailer said first quarter sales fell 7.5% to $862.9 million from $932.4 million a year ago. Net income in the quarter rose 93% to $38 million or 59 cents per diluted share compared to net income of $19.7 million or 30 cents per a year ago.

Costco Wholesale Corporation ((COST)) dropped $1.90 or 3.9% to $46.53 after it reported same store sales in May declined 7%. For the domestic locations sales declined 6% and at international locations sales dropped 6%. Excluding gasoline, sales across the company rose 1% and at domestic locations declined 1% and at international locations rose 7%.

Cyberonics, Inc ((CYBX)) increased 13.8% or $2.07 to $16.99 after the medical technology company said fourth quarter sales rose 14% to $38.6 million from $33.9 million a year ago. Net income in the quarter rose 124% to $6.5 million or 22 cents per diluted share compared to net income of $2.9 million or 11 cents per a year ago.

Dillard’s Inc ((DDS)) declined 5.4% to $9.80 after it reported same store sales in May declined 12%.

Dynamex Inc ((DDMX)) rose 14.3% or $2.38 to $18.99 after the logistics services provider said third quarter sales fell 18.4% to $92.2 million from $113 million a year ago. Net income in the quarter fell 58% to $1.6 million or 17 cents per diluted share compared to net income of $3.8 million or 37 cents per a year ago.

Macy’s, Inc ((M)) sales declined 4.2% to $12.76 after it reported May same store sales declined more than 9%.

Martek Biosciences Corporation ((MATK)) declined 7.3% or $1.60 to $20.15 after the seller of nutritional oils and dietary supplements said second quarter revenues rose 2% to $92.4 million from $90.7 million a year ago. Net income in the quarter rose 20% to $11 million or 33 cents per diluted share compared to net income of $9.2 million or 28 cents per a year ago.

SAIC, Inc ((SAI)) climbed 3.7% or 66 cents to $18.26 after the provider of technical services said first quarter revenues rose 12% to $2.65 billion from $2.37 billion a year ago. Net income in the quarter rose 13% to $116 million or 28 cents per diluted share compared to net income of $103 million or 24 cents per a year ago.

Saks Incorporated ((SKS)) traded unchanged to $4.05 after the luxury goods retailer reported same store sales plunged 26% in May.

Target Corp ((TGT)) declined 4% or $1.63 to $39.34 after it reported May sales declined 6.1%.

Teekay Corporation ((TK)) fell 0.1% or 3 cents or $15.5 after the oil tanker shipping company reported fourth quarter revenues rose 21.2% to $801.6 million from $661.4 million a year ago. Net loss in the quarter was $660.8 million or $9.12 per diluted share compared to net loss of $114.8 million or $1.55 per share a year ago.

Toll Brothers, Inc ((TOL)) fell 6.6% or $1.29 to $18.24 after the luxury homebuilder said second quarter revenues fell 51% to $398.3 million from $818 million a year ago. Net loss in the quarter was $83.2 million or 52 cents a diluted share compared to net loss of $93.7 million or 59 cents per a year ago.

Vail Resorts, Inc ((MTN)) dropped 0.3% or 9 cents to $28.80 after the premier mountain resort company reported third quarter revenues fell 21.2% to $334 million from $424 million a year ago. Net income in the quarter fell 29% to $61.6 million or $1.68 per diluted share compared to net income of $87.3 million or $2.24 per share a year ago.