Victoria’s Secret parent L Brands jumps on revised guidance as latest stimulus boosts sales

Victoria's Secret
  • Shares of L Brands, parent of lingerie retailer Victoria’s Secret, rose by nearly 7% on Friday.
  • The company raised its first-quarter earnings view to $0.85-$1 a share from $0.55 to $0.65 a share.
  • An uptick in sales appears to be driven by stimulus payments and easing COVID-19 restrictions.
  • See more stories on Insider’s business page.

Shares of Victoria’s Secret parent company L Brands climbed Friday after lingerie retailer raised its quarterly earnings outlook, citing stimulus payments to Americans as a pillar of sales support.

L Brands now expects first-quarter earnings of $0.85-$1 per share, higher than its previous forecast of $0.55-$0.65 per share, excluding any charges related to the early extinguishment of debt. Analysts were looking for earnings of $0.62 per share, according to a survey of analysts at Yahoo Finance.

The shares tacked on 6.7% when they hit $63.40. This year, the stock has jumped nearly 60% and has risen over the past 12 months from about $12.50.

“Improved sales trends,” the company gauged, “are primarily driven by unusual shifts in consumer spending patterns, resulting from government stimulus payments, a relaxation of COVID-19 restrictions and other factors.”

The US government this month began sending out $1,400 checks to most Americans to help them deal financially with the COVID-19 health crisis. Meanwhile, more businesses have been reopening services with the vaccination of millions of people in the US against coronavirus. About 14% of the population has been fully vaccinated, according to the Centers for Disease Control and Prevention.

The company said it’s seeing stronger activity at its Victoria’s Secret chain as well as its Bath & Body Works stores.

“The environment remains uncertain, and there is no assurance that these improved trends will continue,” L Brands said.

Read the original article on Business Insider

Ulta Beauty tumbles as profit outlook disappoints and CEO Dillon plans to step down

ulta
  • Ulta Beauty dropped nearly 9% on Friday following quarterly earnings the prior evening.
  • Ulta’s earnings-per-share view of $8.85 to $9.30 fell short of Wall Street’s target of $10.61.
  • CEO Mary Dillion will transition to the role of the board’s executive chair.
  • See more stories on Insider’s business page.

Ulta Beauty shares were knocked sharply lower on Friday after the cosmetics retailer’s yearly earnings guidance missed Wall Street’s target. The company also said CEO Mary Dillon will step down from the top role.

The company late Thursday forecast fiscal 2021 per-share earnings of $8.85 to $9.30, which includes the impact of about $850 million in share buybacks. Analysts were looking for earnings of $10.61 per share, according to data compiled by Refinitiv. Ulta’s revenue forecast was $7.2 billion to $7.3 billion, below the average analyst forecast of $7.32 billion.

The company in a separate announcement said Dillon will transition to the role of executive chair of its board of directors, with President Dave Kimbell to succeed her as CEO.

Shares dropped 8.5% to close at $318.15. They fell by as much as 12% to an intraday low of $306.06. The stock has gained about 11% this year and has climbed by 54% over the past 12 months.

“Throughout my time with the company, I have worked closely with our board on strategic succession plans, and I believe now is the right time to begin a CEO transition,” said Dillon in the statement, noting that she had led the company for eight years. Kimbell joined Ulta Beauty as chief marketing officer in 2014.

For the fourth quarter ended January 30, Ulta posted adjusted earnings were $3.41 per share, down from $3.83 per share a year ago but higher than expectations of $2.35 per share. Revenue of $2.2 billion was ahead of Wall Street’s projection of $2.08 billion but down from $2.31 billion a year earlier.

Dillon will be nominated to stand for election to the company’s board of directors at its 2021 annual stockholders meeting to be held on June 2.

Screen Shot 2021 03 12 at 8.24.40 AM
Read the original article on Business Insider

Ulta Beauty tumbles 11% as profit outlook disappoints and CEO Dillon plans to step down

ulta
  • Ulta Beauty dropped 11% on Friday following quarterly earnings the prior evening.
  • Ulta’s earnings-per-share view of $8.85 to $9.30 fell short of Wall Street’s target of $10.61.
  • CEO Mary Dillion will transition to the role of the board’s executive chair.
  • See more stories on Insider’s business page.

Ulta Beauty shares were knocked sharply lower on Friday after the cosmetics retailer’s yearly earnings guidance missed Wall Street’s target. The company also said CEO Mary Dillon will step down from the top role.

The company late Thursday forecast fiscal 2021 per-share earnings of $8.85 to $9.30, which includes the impact of about $850 million in share buybacks. Analysts were looking for earnings of $10.61 per share, according to data compiled by Refinitiv. Ulta’s revenue forecast was $7.2 billion to $7.3 billion, below the average analyst forecast of $7.32 billion.

The company in a separate announcement said Dillon will transition to the role of executive chair of its board of directors, with President Dave Kimbell to succeed her as CEO.

Shares dropped 11% to a low of $308.32 as trading in the regular session got underway. The stock had gained 21% so far in 2021 and has climbed by nearly 68% over the past 12 months.

“Throughout my time with the company, I have worked closely with our board on strategic succession plans, and I believe now is the right time to begin a CEO transition,” said Dillion in the statement, noting that she had led the company for eight years. Kimbell joined Ulta Beauty as chief marketing officer in 2014.

For the fourth quarter ended January 30, Ulta posted adjusted earnings were $3.41 per share, down from $3.83 per share a year ago but higher than expectations of $2.35 per share. Revenue of $2.2 billion was ahead of Wall Street’s projection of $2.08 billion but down from $2.31 billion a year earlier.

Dillon will be nominated to stand for election to the company’s board of directors at its 2021 annual stockholders meeting to be held on June 2.

Screen Shot 2021 03 12 at 8.24.40 AM
Read the original article on Business Insider

Best Buy slides 9% on weak holiday sales and soft 2022 revenue guidance

best buy coronavirus
  • Best Buy shares hit an intraday low of $103.39 in heavy volume after the retailer’s fourth-quarter report. 
  • The company’s quarterly revenue of $16.9 billion fell short of expectations of $17.2 billion. 
  • Jefferies says Fry’s Electronics closing shop could bring $400 million in sales for Best Buy. 
  • Visit the Business section of Insider for more stories.

Best Buy stock slumped Thursday, hurt by fourth-quarter revenue that fell short of Wall Street’s target and the electronic retailer’s outlook for a potential decline in same-store sales in the current quarter.

Revenue was $16.94 billion for the period ended January 31. That result missed expectations of $17.2 billion but was higher than $15.2 billion in revenue generated in the same quarter last year.

Demand for technology “remains at elevated levels” at the start of fiscal 2022 but the company said there’s also still significant uncertainty about how customer trends will develop with the COVID-19 pandemic still ongoing. It forecast a decline of 2% to growth of 1% in comparable sales for the fiscal year.

Shares slumped as much as 9% with an intraday low of $103.39 then trimmed the loss to 5.8%. Volume was heavy, with 4.1 million shares traded to outpace average daily volume of 3.04 million.

The same-store sales outlook “assumes that customers resume or accelerate spend in areas that were slowed during the pandemic, such as travel and dining out, in the back half of the year,” said Best Buy in its earnings statement.

Adjusted earnings for the fourth quarter were $3.10 per share, beating Wall Street’s projection of $3.45 per share. The adjusted earnings rose from $2.84 per share a year earlier.

What could help sales for Best Buy, said Jefferies on Thursday, is the bust-up of Fry’s Electronics which on Wednesday said it was closing its 31 stores in nine states after nearly 36 years in business.

“[We] believe the total dollar share clinched by Best Buy could be in excess of $400 million. We reiterate our Buy-rating on shares,” said Jonathan Matuszewski, a consumer analyst at Jefferies, in a note to clients.

Matuszewski said the estimate was based on its overlap analysis that suggested an average of two Best Buy stores within a 15-minute drive of Fry’s locations, with more than 20% of markets having three to four Best Buy stores in close proximity. Fry’s said it is shutting its doors “as a result of changes in the retail industry and the challenges posed by the COVID-19 pandemic.”

Best Buy’s stock has risen roughly 7% this year and has logged a 12-month rise of 36%.

Read the original article on Business Insider

New CDC advice says people are exempt from some COVID-19 quarantine rules after a 2nd vaccine dose

Hartford CT, Vaccine, US
A healthcare worker receives a dose of the Pfizer-BioNTech vaccine.

  • “Fully vaccinated” people need not quarantine if after they are exposed to COVID-19, the CDC said.
  • Full vaccination is the point two weeks after getting a second COVID-19 shot.
  • The CDC said the benefits of not quarantining outweight the risks of passing on the virus.
  • Visit the Business section of Insider for more stories.

People who have been fully vaccinated will not have to quarantine if they have been exposed to someone with COVID-19, according to newly-updated guidance from the CDC

The new rules mean people can skip quarantine if they:

  • Got the second dose of a vaccine more than 2 weeks ago, but less than 3 months ago.
  • Experienced no symptoms of COVID-19 since they were exposed. 

Only the Pfizer and the Moderna vaccine are being distributed in the US at the moment.

People who aren’t vaccinated are still supposed to quarantine for 14 days after they have been in close contact with someone who has COVID-19.

Full protection against COVID-19 is reached by the immune system one week after the second dose of the Pfizer vaccine, and two weeks after the second dose of the Moderna vaccine, according to Insider’s Hilary Brueck.

The new CDC guidance said that if a single-dose vaccine becomes available, one dose will be enough to skip quarantine after being exposed to someone who might have COVID-19.

The guidance admitted that it is not yet clear whether someone who has been vaccinated could still pass on the coronavirus to someone else

However, in their decision, they said that less quarantining is a benefit that outweighs the risk of increased transmission.

It is not yet clear whether vaccines will protect against new variants of the coronavirus, so people who have been fully vaccinated should continue to wear masks and respect social distancing rules, the CDC said.

Public health guidelines have continued to change as experts find out more about the virus and how to treat it.

A study from the agency recently showed that wearing two masks at once, one surgical mask underneath a cloth mask, improves the protection given by about 50%.

It is not yet clear whether the vaccines continue protecting against COVID-19 beyond three months after the second dose is taken.

However, “there is confidence in protection for those 90 days following vaccination”, Saskia Popescu, an epidemiologist and infection preventionist at George Mason University in Virginia, told NBC news.

The recommendations will “likely evolve” as we learn more about how long the vaccine protects against COVID-19, Popescu said. 

Read more: All the ad agencies benefitting from HHS’s $115 million vaccine education campaign

The CDC had previously recommended that people who have recovered from COVID-19 don’t need to go into quarantine for 90 days

The guidance will be reviewed when new data becomes available, the CDC said.

Read the original article on Business Insider