Gap Posts Holiday Season Loss
And Ulta Beauty grows, but not much.
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Gap Posts Holiday Season Loss
Shares of Gap (NYSE: GPS) dropped by 8.20% in after-hours trading on Thursday after the clothing and accessories retailer posted bad financial results.
Financials: Gap reported a loss of 75 cents per share in the past quarter and revenue of $4.24 billion; both were below estimates.
Details: Net sales during the fourth quarter dropped 6% year-over-year, with same-store sales declining by 3% and online sales decreasing by 10%.
Also: Gap also announced that a few executives were departing. The company still hasn't filled its vacant CEO role, but it hopes to do so soon.
Outlook: Net sales during the current quarter are also expected to decline year-over-year.
Stock Price: Gap stock is down 18% in the last 12 months.
Final Thoughts: The previous quarter was the holiday season and it was meant to be a strong shopping period. But Gap fell way short. There are still major leadership questions.
Notable Earnings Today: Lion Electric (NYSE: LEV), Target Hospitality (Nasdaq: TH), Embraer (NYSE: ERJ), Buckle (NYSE: BKE), Airsculpt Technologies (Nasdaq: AIRS), Century Casinos (Nasdaq: CNTY), Genius Sports (NYSE: GENI), JinkoSolar Holding (NYSE: JKS).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Unemployment Rate (8:30 a.m. ET), Average Hourly Earnings (8:30 a.m. ET), Federal Budget Balance (2:00 p.m. ET).
Oracle Grows, But Still Not Enough
Oracle (NYSE: ORCL) posted mixed financial results in after-hours trading on Thursday, which sent the stock down by 4.05%.
Financials: Oracle reported earnings of $1.22 per share in the past quarter, which was better than expected. But revenue only hit $12.4 billion, which was below estimates.
Growth: NetSuite revenue increased by 23%, Fusion Cloud ERP revenue increased by 25%, Cloud Revenue increased by 45%, and Cloud Infrastructure revenue increased by 55%.
Also: Oracle is also increasing its quarterly dividend by 25%.
Stock Price: The stock is up 13% in the past 12 months, but is about even in the last 30 days.
Final Thoughts: Revenue was the big problem for Oracle in the quarter. The strengthening of the US dollar compared to foreign currencies was also a problem. Oracle hopes that its cloud business can grow, which would please investors.
Ulta Beauty Faces Growth Slowdown
Despite strong financial results, shares of Ulta Beauty (Nasdaq: ULTA) ticked down by 1.77% in after-hours trading on Thursday.
Financials: Ulta Beauty reported earnings of $6.68 per share in the past quarter and revenue of $3.23 billion; both were better than expected.
Details: Net sales increased by 18.2% year-over-year and gross profit increased by 18%. The growth is good but it is slower.
Stock Price: Ulta Beauty’s stock is up 10% in the last 12 months, but is about even in the last 30 days.
Final Thoughts: It appears that growth may have slowed a bit for Ulta Beauty, but this category is still a good place for investors to be because even in a down economy, consumers will spend on beauty.
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Trends to Watch
Uh-Oh: Silicon Valley Bank’s Financial Stability Worries Investors (The New York Times)
No Silver Lining Here: Bitcoin Falls Below $20K as 2023 Rally Reverses (CoinDesk)
All Bad: Allbirds admits missteps, unveils new strategy after brutal holiday quarter (CNBC)
Driving Away Employees: General Motors offers buyouts to majority of Michigan’s 35,000 salaried workers (MLive)
Protection: Fed's Barr says crypto needs 'guardrails' to realize benefits (Reuters)
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