Stocks to Watch: Ann Taylor Climbs, Electronics Sellers Drop
The Day's WinnersAbercrombie & Fitch (ANF) added about 3% to $21.24 after the company said it would beat second-quarter estimates on better-than-expected sales. The retailer said its total net sales in July were up 18% to $126.2 million, while same-store sales fell about 3%. Abercrombie said results were boosted by inventory and cost control measures. Women's apparel retailer Ann Taylor (ANN) added 4.4% to $25.20 after raising its second- and third-quarter guidance on higher July sales. The company now expects to earn 38 cents in the second quarter and 50 cents to 51 cents in the third quarter, compared with consensus estimates of 29 cents and 46 cents, respectively. Ann Taylor reported an 18.5% increase in July sales, with comparable-store sales up 7.4% for the month.
The Day's LosersShares of Best Buy (BBY) plunged 38% to $18.98 after the electronics retailer said it was lowering its second quarter outlook, citing flat same-store sales caused by "declining consumer confidence." The company forecast second-quarter earnings of 17 cents to 21 cents a share, sharply down from its earlier guidance of 30 cents to 32 cents. Analysts had been looking for 32 cents. "Our June results were in line with our expectations, but comparable store sales softened significantly in July, finishing the month essentially flat," the company said in a statement. Best Buy now expects to see "modestly positive" comparable-store sales for the quarter, down from an earlier outlook calling for 4% to 5% growth. Discount warehouse clubs were trading down after BJ's Wholesale Club (BJ) cut its second-quarter forecast on slower sales trends and an "unfavorable mix of sales." The company expects earnings of about 50 cents a share in the quarter, below the consensus estimate of 54 cents. For the third quarter, BJ's also cut its forecast to 42 cents to 44 cents, missing the consensus of 48 cents. Costco (COST) was also trading down about 6.4% to $32.33, despite posting a 5% increase in same store sales for July. Total sales for the month were up 10% to $2.96 billion. Factory 2-U (FTUS) fell 27% to $6.37 on lower sales and a downgrade. The company said sales were down 3.9% for July. The discount retailer also warned that it expects to lose 33 cents to 36 cents a share in the quarter, well below the consensus estimate calling for a loss of 19 cents a share. The stock was downgraded to hold from buy by Wedbush Morgan on the news. Orthodontic Centers of America (OCA) was losing 8.5% to $11.90 on a downgrade from Banc of America. The firm cut its rating on Orthodontic to market perform from buy, saying the company's announcement of a delay in its second-quarter earnings release and an accompanying charge came as a surprise. Banc of America added that the delay just adds to the list of accounting problems the company faces. Ultimate Electronics (ULTE) was falling 38% to $8.17 after slashing its second-quarter outlook on weak sales. The company now expects 5 cents to 7 cents a share for the second quarter, missing the consensus estimate of 13 cents. The stock was downgraded by Piper Jaffray to outperform on the news, and the firm cut its price target on the stock to $15 from $39.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV