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Market Update

Kroger, Restoration Soar; Mattress Firm, Marvell, Zumiez Tumble


Author: Mukesh Buch
ticker.com
Last Update: 12:28 PM ET September 11 2015

12:20 PM New York GE agreed to sell its transportation finance business to BMO Financial. Brady net loss narrowed. Kroger net swung to a loss. Mattress Firm profit surged 53%. Marvell Technology net swung to a loss. Restoration Hardware net jumped 10%. Zumiez net tumbled 57%.

Tollbooth Index gained 9.31 to 10,278.24.

Earnings Review

Brady Corp (BRC) plunged 10.6% or $2.28 to $19.24 after the identification solution products maker said revenues in the fourth-quarter ending in July declined 8.9% from a year ago to $288.6 million.

Net loss in the quarter narrowed to $39.4 million or 77 cents per diluted share compared to $110.4 million or $1.89 from the same quarter last year.

Cherokee Inc (CHKE) tumbled 31.6% or $7.61 to $16.65 after the fashion and lifestyle product marketer said revenues in the second-quarter ending on August 1 fell 3% from a year ago to $8.5 million.

Net income in the quarter declined 17.4% to $1.9 million or 22 cents per diluted share compared to $2.3 million or 27 cents from the same quarter last year.

General Electric Company (GE) fell 14 cents to $24.54 after the industrial conglomerate agreed to sell its transportation finance business in the U.S. and Canada to Canada-basedBMO Financial Group without disclosing of financial terms.

The transaction is expected to close by the end of the year.

Kroger Co (KR) soared 4.8% or $1.70 to $37.10 after the convenience stores operator reported total sales in the second-quarter ending on August 15 rose 0.9% from a year ago to $25.5 billion.

Net in the quarter swung to a loss of $7.7 million or 5 cents per diluted share compared to profit of $17.1 million or 11 cents from the same quarter last year.

For the year, Kroger lifted diluted earnings per share forecast in the range of $1.92 to $1.98 for from previous guidance between $1.90 and $1.95 and sales growth of 4% to 5% from earlier estimated range of 3.5% to 4.5%.

Mattress Firm Holding Corp (MFRM) plummeted 18.2% or $10.99 to $49.35 after the mattresses retailer said revenues in the second-quarter ending on August 4 soared 61.2% from a year ago to $661.1 million.

Comparable store sales in the quarter jumped 2.8%

Net income in the quarter surged 53.1% to $21.9 million or 61 cents per diluted share compared to $14.3 million or 41 cents from the same quarter last year.

Marvell Technology Group Ltd (MRVL) tumbled 17.1% or $1.80 to $8.75 after the fabless semiconductor provider reported revenues in the second-quarter ending on August 1decreased 1.8% from a year ago to $711.3 million, lower than $720 million estimated by analysts.

Net in the quarter swung to a loss of $382.4 million or 74 cents per diluted share compared to profit of $14.1 million or 3 cents from the same quarter last year.

The semiconductor maker also disclosed an internal revenue recognition inquiry focusing on 7% to 8% of revenues in the quarter. So far the audit committee has not found any material issues.

Restoration Hardware Holdings Inc (RH) surged 7.7% or $7.02 to $98.08 after the luxury home furnishings retailer said revenues in the second-quarter ending on August 4jumped 17% from a year ago to $661.1 million.

Comparable store revenues in the quarter soared 16%

Net income in the quarter advanced 9.5% to $29.9 million or 75 cents per diluted share compared to $27.3 million or 69 cents from the same quarter last year.

The company forecasted revenues for the third-quarter between $531 million to $541 million and for the fourth-quarter revenues in the range of $698 million to $708 million.

For the year, the home furnishings retailer estimated revenues between $2.16 billion and $2.18 billion

Zumiez Inc (ZUMZ) plunged 27.8% or $6.01 to $15.65 after the specialty retailer stated total net sales in the second-quarter ending on August 1 rose 1.8% from a year ago to $179.8 million.

Comparable store sales in the quarter declined 4.5%

Net income in the quarter tumbled 56.9% to $3.2 million or 11 cents per diluted share compared to $7.5 million or 26 cents from the same quarter last year.

The apparel, footwear and accessories retailer forecasted third-quarter same-store sales to fall between 7% and 9% and net sales between $202 million and $206 million and diluted earnings per share in the range of 27 cents to 31 cents.

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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