It’s a fairly quiet day of summer trading as earnings continue and a handful of retailers reported July sales.
The S&P 500 is flat at 2,164, the Dow Jones Industrial Average is sliding by 8 points to 18,346 and the Nasdaq is rising by 2 points to 5,162. The S&P Retail ETF is declining by 22 cents to $44.02.
Sally Beauty Holdings Inc. stock dropped over 8 percent to $27.26 after the company reported sales that missed analyst estimates. Net sales totaled $998.2 million, up 3.1 percent year-over-year, but short of the FactSet estimate for sales of $1 billion. Sally had $67.9 million in earnings, with diluted earnings per share of 46 cents — a 17.9 percent increase over the prior-year period. The business posted a consolidated gross profit of $499 million, up 3.7 percent from the prior-year period.
HSN Inc.’s sales and income fell in the second quarter as the company decided to sell its TravelSmith and Chasing Fireflies businesses. HSN also said that Judy Schmeling will become president of Cornerstone. The stock is dropping over 9 percent to $47.59 in early trading. HSN’s net income dropped 36 percent to $26.4 million or 50 cents per share from last year’s $41.6 million. The adjusted net income fell 10 percent to $39.3 million from last year’s $43.5 million. The adjusted earnings per share were 74 cents, which beat the FactSet estimate for earnings of 71 cents per share.
L Brands Inc. July net sales came in at the high end of the projected range, lifting the company’s stock in early trading. L Brands recorded July net sales of $777 million for the four weeks ending July 30 for an increase of 2 percent over last year’s $759 million. Comparable sales also increased 2 percent for the same period; but this is lower than last year’s comp-store sales increase of 3 percent. The positive takeaway was that it beat the Thomson Reuters same-store sales estimate for an increase of 0.4 percent. L Brands stock is rising by over 1 percent to $73.45.
In other July sales news, The Cato Corp.’s same-store sales dropped 10 percent — a big miss from the Thomson’s estimate for a decline of 1 percent. Cato stock dropped over 1 percent to sell at $33.67 in early trading. Teen retailer The Buckle reported that July sales fell 10.9 percent, far above the expected decline of 3.6 percent. Buckle stock is falling over 3 percent to $25.59.
Zumiez July sales fell 2.9 percent, but this was better than the expected decline of 3.6 percent. Comp sales fell by 4.9 percent, but this was ahead of the guidance for a drop of 6 to 8 percent. Zumiez also said that earnings per share will be at the high end of the range or even slightly better than their projected range of negative 9 to negative 13 cents a share. Zumiez stock is rising over 1 percent to $17.70.