- Scott Peters
- 03 Mar, 2023
- New York City
Best Buy Co Inc increased 2.7% to $83.0 after the electronic retailer reported higher-than-expected holiday quarterly earnings but forecasted same store sales to fall in the current year.
Best Buy Co, Inc said revenue in the fourth quarter decreased to $14.7 billion from $16.3 billion and net income declined $495 million from $626 million and diluted earnings per share dropped to $2.23 from $2.62 a year ago.
Revenue in the full-year 2022 declined to $46.3 billion from $51.8 billion and net income fell to $1.4 billion from $2.5 billion and diluted earnings per share dropped to $6.29 from $9.84 a year ago.
Domestic comparable sales in the fourth quarter declined 9.6% on top of 2.1% and domestic online sales fell 13.0% on top of 11.2% from a year ago. Domestic comparable sales in the fiscal year 2022 declined 9.9% from 10.4% increase and domestic online sales fell 13.5% on top of 12.0% fall in the previous year.
The electronics retailer estimated revenue in the fiscal 2024 in the range between $43.8 billion from $45.2 billion and comparable sales to decline between 3.0% and 6.0%.
Big Los, Inc increased 2.2% to $14.83 after the deep discount retailer swung to a quarterly loss but earnings were ahead of expectations.
Big Lots said revenue in the fourth quarter decreased 10.9% to $1.5 billion and the retailer swung to a net loss of $12.5 million from $49.8 million a year ago.
Diluted loss per share was 43 cents compared to a profit of $1.63 in the previous year.
Comparable sales declined 13% adversely impacted by 130 basis points in furniture sales following product shortages resulting from the unexpected closure of United Furniture Industries, parent company of Lane.
The company declared a quarterly dividend of 30 cents per share payable on March 31 to shareholders on record on March 17.
Costco Wholesale decreased 3.2% to $470.51 after the membership-based retailer mixed quarterly results a day ago.
Costco Wholesale said revenue in the fiscal second quarter ending on February 12 increased to $55.2 billion from $51.9 billion and net income increased to $1.5 billion from $1.3 billion and diluted earnings per share rose to $3.30 from $2.92 a year ago.
Comparable store sales at U.S. locations excluding gasoline increased 3.5% and adjusted for calendar shift rose 3.4% and overall comparable sales rose 3.5% and 5.0% respectively.
Online sales in the quarter declined 11.2% and dropped 10.3% in the calendar adjusted period.
Dell Technologies Inc increased 0.4% to $40.32 after the personal computer maker reported weaker-than-expected outlook.
Dell Technologies said revenue in the fourth quarter declined 11% to $25 billion and net income in the fourth quarter increased to $614 million from $2 million and diluted earnings per share rose to 84 cents from a loss of 4 cents in the previous year.
Revenue in the full-year 2022 increased 1% to $102.3 billion and net income plunged 51% to $2.4 billion from $5.7 billion and diluted earnings per share fell to $3.24 from $6.26 a year ago.
Hibbett Inc declined 1% to $69.85 after the sporting goods retailer reported revenues and earnings lower than expected.
Hibbett Inc said net sales for the 13-weeks ended on January 28 increased 19.6% to $458.3 million compared with $383.3 million in the previous year.
Comparable store sales increased 14.3% and online comparable sales increased 21.4% from the previous year.
In relation to the 13-weeks ended February 1, 2020, comparable store sales increased 32.6% and online sales grew 79.8%.
Online sales represented 17.4% of total net sales for the fourth quarter compared to 17.1% in the previous year and 14.2% for the 13-weeks ended February 1, 2020.
Net income in the fourth quarter increased to $38.4 million from $17.7 million in the year ago and diluted earnings per share rose to $2.91 from $1.25 a year ago.
- Bridgette Randall
- 03 Mar, 2023
- Frankfurt
Deutsche Lufthansa AG increased 6.4% to €10.49 after the German airline swung to a full-year operating profit and the airline forecasted additional improvement in 2023.
Revenue in the financial year 2022 nearly doubled to €32.8 billion from €16.8 billion and net income improved to a profit of €791 million from a loss of €2.2 billion in the previous year.
In total, the German airline transported 102 million passengers in 2022 compared to 47 million in the previous year.
The seat load factor improved to 79.8% in 2022, 18.2 percentage points higher than 61.6% in the previous year.
Lufthansa cargo revenue increased 21% from the previous year and jumped 136% from the pre-covid 2019 level to a record high after yield improved in all traffic regions.
Schaeffler AG increased 1.1% to €7.09 after the German industrial products and bearings maker announced an acquisition.
The company agreed to acquire 100% stake in Paris-based predictive maintenance solution provider Eco-Adapt SAS and the acquisition is expected to close int he first-half of 2023.
Pearson Plc declined 3.2% to 891 pence after the UK-based test preparatory and higher education books publisher forecasted 2023 revenue growth in "low- to mid-single digit."
Revenue in the full-year 2022 increased 12% to £3,8 billion from £3.4 billion and operating profit increased to £271 million from £183 million and diluted earnings per share £332.6mincreased to 32,8 pence from 23.5 pence in the previous year.
Rightmove Plc declined 1.1% to 557.40 pence despite the company reporting an increase in operating profit and raising its final dividend payment.
The largest online property platform operator in the UK increased its final dividend to 5.2 pence from 4.8 pence and total dividend to 8.5 pence from 4.8 pence a year ago.
Revenue in the full-year 2022 increased 9% to £332.6 million from £304.9 million and operating profit from continuing operations increased 6% to £245.4 million from £231.0 million.
Total agent membership was flat in 2022 at 19,014 compared to 18,969 in 2021.
- Bridgette Randall
- 03 Mar, 2023
- Frankfurt
Market indexes in Europe digested fresh economic data in the region and welcomed dovish comments from the U.S. Fed policymaker.
Market indexes rebounded on Friday after Atlanta Fed President Raphael Bostic supported a smaller rate hike of 25 basis points after a day ago Fed Governor Christopher J. Waller supported 50 basis points rate increase if inflation fails to cool in comments to a group of bankers.
The Euro Area producer price inflation eased in January after energy prices fell, Germany's exports rebounded in January on higher shipments to the U.S., France's industrial output declined for the first time in three months and Italy's GDP contracted marginally in the final quarter of 2022.
Eurozone Wholesale Inflation Eased
The Euro Area producer price inflation eased to 15.0% in January from 24.5% in December, data from Eurostat showed on Friday.
Germany's Trade Surplus Expanded
Germany's exports increased 2.1% in January after falling 6.3% in December, the Federal Statistical Office or Destatis reported on Friday.
The decline in imports eased to 3.4% in January from 5.6% in December, resulting in an increase in trade surplus to Є16.7 billion from Є10.0 billion in the corresponding period.
Italy's GDP Contracted In December Quarter
Italy's economy contracted 0.1% in the final quarter 2022, reversing the revised 0.4% increase on a monthly basis, the statistical office ISTAT reported Friday.
Consumer spending fell 1.6% but government spending rose 0.5% in the final quarter on a monthly basis.
The final estimate of the GDP growth was inline with the preliminary estimate released on January 31.
The GDP growth on an annual basis was revised to 1.4% increase from the previous estimate of 1.7% and slower from 2.5% increase in the third quarter ending in September.
Indexes & Yields
The DAX index increased 1.5% to 15,555.83, the CAC-40 index added 0.9% to 7,347.96 and the FTSE 100 index decreased 3.3 points to 7,347.96.
The yield on 10-year German bunds inched lower to 2.72%, French bonds fell to 3.21%, UK gilts to 3.85% and Italian bonds to 4.56%.
The euro edged lower to $1.06, the British pound eased to $1.19 and the Swiss franc to 93.86 cents.
Brent crude oil added 5 cents to $84.81 a barrel and the Dutch natural gas futures fell Є1.34 to Є45.48 a MWh.
Europe Movers
Deutsche Lufthansa AG increased 6.4% to €10.49 after the German airline swung to a full-year operating profit and the airline forecasted additional improvement in 2023.
Revenue in the financial year 2022 nearly doubled to €32.8 billion from €16.8 billion and net income improved to a profit of €791 million from a loss of €2.2 billion in the previous year.
In total, the German airline transported 102 million passengers in 2022 compared to 47 million in the previous year.
The seat load factor improved to 79.8% in 2022, 18.2 percentage points higher than 61.6% in the previous year.
Lufthansa cargo revenue increased 21% from the previous year and jumped 136% from the pre-covid 2019 level to a record high after yield improved in all traffic regions.
Schaeffler AG increased 1.1% to €7.09 after the German industrial products and bearings maker announced an acquisition.
The company agreed to acquire 100% stake in Paris-based predictive maintenance solution provider Eco-Adapt SAS and the acquisition is expected to close int he first-half of 2023.
Pearson Plc declined 3.2% to 891 pence after the UK-based test preparatory and higher education books publisher forecasted 2023 revenue growth in "low- to mid-single digit."
Revenue in the full-year 2022 increased 12% to £3,8 billion from £3.4 billion and operating profit increased to £271 million from £183 million and diluted earnings per share £332.6mincreased to 32,8 pence from 23.5 pence in the previous year.
Rightmove Plc declined 1.1% to 557.40 pence despite the company reporting an increase in operating profit and raising its final dividend payment.
The largest online property platform operator in the UK increased its final dividend to 5.2 pence from 4.8 pence and total dividend to 8.5 pence from 4.8 pence a year ago.
Revenue in the full-year 2022 increased 9% to £332.6 million from £304.9 million and operating profit from continuing operations increased 6% to £245.4 million from £231.0 million.
Total agent membership was flat in 2022 at 19,014 compared to 18,969 in 2021.
- Barry Adams
- 03 Mar, 2023
- New York City
Benchmark indexes gyrated following comments from Fed officials in the last two sessions and retailers were in focus after the release of corporate earnings.
Market indexes rebounded on Friday after Atlanta Fed President Raphael Bostic supported a smaller rate hike of 25 basis points after a day ago Fed Governor Christopher J. Waller supported 50 basis points rate increase if inflation fails to cool in comments to a group of bankers.
Retailers were in focus after Best Buy, Macy's Big Lots and Costco Wholesale reported mixed quarterly earnings and sharp fall in electronics sales.
In addition, online sales continued to slide at retailers after consumers shifted spending away from goods and electronics to travel and experiences .
Dell Technologies said fourth quarter sales plunged on the ongoing weakness in personal computer sales.
Indexes & Yields
The S&P 500 index increased 0.5% to 4,003.50 and the Nasdaq Composite index added 0.5% to 12,121.50.
The yield on 2-year Treasury notes inched lower to 4.85%, 10-year Treasury notes fell to 3.98% and 30-year Treasury bonds held stable near 3.93%.
Crude oil prices fell $1.85 to $76.31 a barrel and natural gas prices eased 7 cents to $2.83 a thermal unit.
U.S. Movers
Best Buy increased 1.60% to $80.79 after the electronics retailer reported better-than-expected holiday quarter sales but warned sales softness to continue in the current fiscal year.
Best Buy Co, Inc said revenue in the fourth quarter decreased to $14.7 billion from $16.3 billion and net income declined $495 million from $626 million and diluted earnings per share dropped to $2.23 from $2.62 a year ago.
Revenue in the full-year 2022 declined to $46.3 billion from $51.8 billion and net income fell to $1.4 billion from $2.5 billion and diluted earnings per share dropped to $6.29 from $9.84 a year ago.
Domestic comparable sales in the fourth quarter declined 9.6% on top of 2.1% and domestic online sales fell 13.0% on top of 11.2% from a year ago.
Domestic comparable sales in the fiscal year 2022 declined 9.9% from 10.4% increase and domestic online sales fell 13.5% on top of 12.0% fall in the previous year.
The electronics retailer estimated revenue in the fiscal 2024 in the range between $43.8 billion from $45.2 billion and comparable sales to decline between 3.0% and 6.0%.
Costco Wholesale decreased 1.9% to $476.0 after the discount retailer reported mixed quarterly results and a sharp decline in e-commerce sales.
Costco Wholesale said revenue in the fiscal second quarter ending on February 12 increased to $55.2 billion from $51.9 billion and net income increased to $1.5 billion from $1.3 billion and diluted earnings per share rose to $3.30 from $2.92 a year ago.
Comparable store sales at U.S. locations excluding gasoline increased 3.5% and adjusted for calendar shift rose 3.4% and overall comparable sales rose 3.5% and 5.0% respectively.
E-commerce sales in the quarter declined 11.2% and dropped 10.3% in the calendar adjusted period.
Dell Technologies said revenue in the fourth quarter declined 11% to $25 billion and net income in the fourth quarter increased to $614 million from $2 million and diluted earnings per share rose to 84 cents from a loss of 4 cents in the previous year.
Revenue in the full-year 2022 increased 1% to $102.3 billion and net income plunged 51% to $2.4 billion from $5.7 billion and diluted earnings per share fell to $3.24 from $6.26 a year ago.
- Barry Adams
- 01 Mar, 2023
- New York City
U.S. stocks trended lower in volatile trading after rate jitters dominated market sentiment.
Market jitters kept indexes in check and benchmark indexes traded in a right range lacking direction after rising Treasury yields and weak corporate results compounded market worries.
Stocks got an early boost after China's official data on the manufacturing sector was much stronger-than-anticipated.
Treasury yields advanced and the yields on 1-year and six-month Treasury notes inched higher above 5%-level.
Investors are still struggling decide terminal rate level with some investors estimating fed funds target rate range to reach as high as 6.0%.
Recent reports on the economy, inflation and employment are signaling that inflation is not likely to cool as fast as previously expected, which continues to put upward pressure on rates.
Higher rates have spilled over to the mortgage market and escalating mortgage rates dragged applications to the lows not seen in 28 years.
China's Manufacturing Expanded at 11-year High Rate
China's PMI in February rose to 52.6 from 50.1 in January, the high not seen since April 2012, the National Bureau of Statistics reported Thursday.
Manufacturing sector expanded for the second month in a row after Beijing ended its three-year old zero-Covid policy.
China's service sector accelerated its expansion, according to the data released by the NBS.
Non-manufacturing PMI rose to 56.3 in February from 54.4 in the previous month after new orders expanded at a faster pace.
Higher Mortgage Rates Crimp Applications to 28-year Low
Mortgage applications declined 5.7% from the previous week, according to data released by the Mortgage Bankers Associations for the week ending February 24.
The index measuring application volume dropped near the 28-year low after the 30-year fixed-rate mortgage increased to 6.71% last week.
"There has now been three straight weeks of declines in applications as mortgage rates have jumped 50 basis points over the past month,” said Joel Kan, MBA’s Vice President and Deputy Chief Economist.
"Purchase applications were 44% lower than a year ago and refinance applications accounted for less than a third of all applications and remained more than 70 percent behind last year’s pace, as a majority of homeowners are already locked into lower rates,” added Kan.
Indexes & Yields
The S&P 500 index decreased 0.5% to 3,951.39 and the Nasdaq Composite index fell 0.7% to 11,379.48.
The yield on 2-year Treasury notes inched higher to 4.88%, 10-year Treasury notes rose to 3.99% and 30-year Treasury bonds held steady at 3.96%.
Crude oil increased 54 cents to $77.59 a barrel and natural gas rose 6 cents to $2.81 a thermal unit.
U.S. Movers
Lowe's Companies said revenue in the fourth quarter rose to $22.4 billion from $21.3 billion and net income declined to $957 million from $1.2 billion and diluted earnings per share fell to $1.58 from $1.78 in the previous year.
Comparable sales in the quarter declined 1.5%.
In full-year 2022, revenue rose to $97 billion from $96.3 billion and net income fell to $6.4 billion from $8.4 billion and diluted earnings per share decreased to $10.17 from $12.04 a year ago.
During the quarter, the retailer repurchased approximately 10 million shares for $2.0 billion and it repurchased 71 million shares for $14.1 billion for the year.
The company also paid $643 million in dividends in the fourth quarter and $2.4 billion in dividends for the year.
In total, the company returned $16.5 billion to shareholders through share repurchases and dividends in 2022.
Kohl's Corporation said revenue in the fourth quarter decreased 7.2% to $5.8 billion and the retailer swung to a net loss of $273 million from $299 million and diluted earnings per share was ($.2.49) compared to $2.20 a year ago.
Comparable sales in the quarter fell 6.6%.
In full-year 2022, revenue fell 7.1% to $17.2 billion and the apparel retailer swung to a net loss of $19 million compared to a profit of $938 million and diluted earnings per share was ($0.15) compared to $6.32 a year ago.
Comparable sales in the year declined 6.6%. The retailer announced a dividend of 50 cents per share payable March 29 to shareholders of record on March 15.
European Markets Pared Gains In Afternoon Trading
European market indexes opened higher on China optimism but major averages in the region eased in the final hour of trading and closed down.
Stocks opened higher after China's official measure of manufacturing activities expanded at the fastest rate in eleven years and service sector activities also rose at a robust pace.
Upbeat China data failed to overcome ongoing investor worries about economic slowdown and aggressive rate hikes.
Economic news in the region showed cooling of inflation is likely to take longer than previously expected and labor market conditions remained tight.
Germany's consumer price inflation held steady at 8.7% but elevated in February, said the Federal Statistical Office. Jobless rate was stable at 5.5% in the month despite challenging market conditions, said the Federal Labor Agency.
Swiss retail sales declined for the fourth month in a row in January.
Norway's current account jumped to NOK 361.20 billion in the fourth quarter of 2022 from NOK 230.84 billion from the previous year.
Surplus of goods and services accounts increased to NOK 324.65 billion from NOK 266.66 billion a year ago.
Germany's Consumer Price Inflation Held Steady
Consumer price inflation in Germany held steady in February, the Federal Statistical Office or Destatis said in a preliminary report on Wednesday.
Consumer price index rose 8.7% in the month matching the increase in January despite the sharp fall in energy prices.
Energy prices rose at a slower pace of 19.1% in February from 23.1% rise in January but food price inflation accelerated to 21.8% from 20.2% in January.
Energy prices rose at a double digit pace despite the government's relief package for consumers.
On a monthly basis, consumer prices rose 0.8%.
Swiss Retail Sales Extended Decline to Fourth Month
Swiss retail sales declined for the fourth month in a row in January, the Federal Statistical Office reported Thursday.
Sales declined 2.2% in January after falling at a rate of 3.0% in December on an annual basis after food and non-food items sales dropped.
Sales of food, tobacco and beverages declined 3.3% and non-food items sales dropped 2.3%, the statistical office reported.
On a monthly basis, retail sales rose a seasonally adjusted 0.6% and In nominal terms, retail sales advanced 0.7% annually and 1.2% from the previous month in January.
Indexes & Yields
The DAX index declined 0.4% to 15,305.02, the CAC-40 index dropped 0.5% to 7,234.25 and the FTSE 100 index rose 0.5% to 7,914.93.
The yield on 10-year German Bunds increased to 2.72%, French bonds rose to 3.21%, UK gilts to 3.82% and Italian bonds to 4.57%.
The euro increased to $1.066, the British pound inched lower to $1.205 and the Swiss franc to 94.00 cents.
Brent crude oil increased 91 cents to $84.36 a barrel and natural gas rose 40 cents to $47.08 per MWh.
Europe Movers
Resource stocks in London and across Europe and luxury fashion goods makers traded higher on China optimism. Brent crude oil and copper and iron ore prices rose as well.
BP Plc and Shell Plc increased 1% and mining companies Antofagasta, Glencore and Anglo American advanced between 3% and 5%.
LVMH and Kering SA added between 1% and 2% on the hopes of higher sales in China.
Persimmon Plc dropped 9.7% to 1,310.81 pence after the UK homebuilder reported a fall in pre-tax earnings and estimated lower home completions in 2023.
Euronext NV increased 4.0% to €71.92 after the pan-European bourse offering various trading services withdrew its offer to acquire Allfunds Group Plc.
Allfunds declined 13.2% to €7.19.
PUMA SE declined 6.8% to €56.30 after the German sportswear maker warned cost pressures are likely to persist in 2023.
Fourth quarter sales increased 24.3% to €2.2 billion but net income plunged to €1 million from €8 million in the previous year.
Full-year 2022 revenue increased 24.4% to €8.4 billion and net income improved to €354 million from € 310 million a year ago.
Earnings per share in the full-year 2022 increased to €2.36 from €2.07 in 2021.