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Market Update

Deere, Ross Stores Profit Decline; Gap Accelerates Restructuring


Author: Mukesh Buch
ticker.com
Last Update: 10:24 AM ET May 20 2016

12:00 PM New York Buckle profit and sales declined. Campbell Soup profit rose. Deere & Co net plunged 28%. Foot Locker net and sales jumped 4%. The Gap profit tumbled 47% and closed 53 Old Navy stores in Japan. Ross Stores net rose 3%.

Tollbooth Index jumped 119.78 or 1.2% to 10,440.70.

Earnings Review

Buckle Inc (BKE) slipped 15 cents to $23.21 after the casual apparel, footwear and accessories retailer said net sales in the first-quarter ending in April plummeted 10.2% from a year ago to $243.5 million.

Comparable store sales in the quarter plunged 11.1%.

Net income in the quarter slumped 31.2% to $23.1 million or 48 cents per diluted share compared to $33.6 million or 70 cents per share from the same quarter last year.

Campbell Soup Company (CPB) dropped 6.4% or $4.11 to $59.87 after the ready-to-serve soups maker reported net sales in the third-quarter ending on May 1 fell 2% from a year ago to $1.87 billion.

Net income in the quarter rose 3.3% to $185 million or 59 cents per diluted share compared to $179 million or 57 cents per share from the same quarter last year.

Deere & Company (DE) slumped 5.1% or $4.17 to $78.09 after the agriculture and turf equipment maker said net sales in the second-quarter ending in April slumped 4% from a year ago to $7.88 billion.

Net income in the quarter plunged 28.3% to $495.4 million or $1.56 per diluted share compared to $690.5 million or $2.03 per share from the same quarter last year.

Foot Locker, Inc (FL) plunged 6.8% or $3.98 to $54.57 after the shoes and apparel retailer stated total sales in the first-quarter ending in April gained 3.7% from a year ago to $1.99 billion.

Comparable store sales in the quarter advanced 2.9%.

Net income in the quarter jumped 3.8% to $191 million or $1.39 per diluted share compared to $184 million or $1.29 per share from the same quarter last year.

The Gap, Inc (GPS) increased 2.3% or 40 cents to $17.67 after the apparel retailer reported sales in the first-quarter ending in April slumped 6% from a year ago to $3.44 billion.

Comparable store sales in the quarter dropped 5%.

Net income in the quarter tumbled 46.9% to $127 million or 32 cents per diluted share compared to $239 million or 56 cents per share from the same quarter last year.

The retailer plans to close approx 53 Old Navy stores in Japan as part of its restructuring and focus on growth in North America and China.

In fiscal 2016, the company also intends to close 75 stores, including some of Banana Republic locations and cut $275 million in costs.

Hibbett Sports, Inc (HIBB) soared 7.8% or $2.50 to $34.76 after the sporting goods retailer said net sales in the first-quarter ending on May 2 jumped 4.6% from a year ago to $282.1 million.

Comparable store sales in the quarter gained 1.1%.

Net income in the quarter added 1.8% to $27.9 million or $1.22 per diluted share compared to $27.4 million or $1.09 per share from the same quarter last year.

Ross Stores, Inc (ROST) declined 4% or $2.24 to $53.28 after the off-price retailer reported total sales in the first-quarter ending in April jumped 5% from a year ago to $3.09 billion.

Comparable store sales in the quarter increased 2%.

Net income in the quarter rose 3.2% to $290.6 million or 73 cents per diluted share compared to $282.2 million or 69 cents per share from the same quarter last year.

The retailer forecasted same store sales in the second-quarter to increase between 1% and 2% and diluted earnings per share in the range of 64 cents to 67 cents from 63 cents in the same period a year ago.

In the year, the company estimated diluted earnings per share in the range of $2.63 to $2.72 compared to $2.51 last year.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc