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Omar Venerio
Omar Venerio
Articles (1720) 

3 Stocks Jump Tuesday

Lands' End, RH, Weight Watchers make good upside movements

June 12, 2018 | About:

Lands' End Inc. (NASDAQ:LE) advanced on the heels of the company reporting its financial results for the first quarter. The company posted a loss of 8 cents per share, which was 9 cents higher than expected. Revenue of $299.83 million grew 11.7% from a year ago, beating estimates by $14.83 million.

The gross margin was 44.4%, as compared to 45.7% in the first quarter of last year. Adjusted earnings before interest, taxes, depreciation and amortization was $9 million, compared to $1.3 million in the same quarter of fiscal 2017.

“We are pleased to be starting off the year on a strong note," President and CEO Jerome S. Griffith said. "Our first-quarter results represent the fourth straight quarter of top-line growth and third quarter of profitability growth, demonstrating the continued progress we have made across our strategic initiatives.”

Shares of RH (NYSE:RH) climbed more than 35% after the company reported first-quarter earnings per share of $1.33 on $557.4 million in revenue. The company beat earnings estimates by 31 cents, but fell $5.76 million short of revenue expectations.

The adjusted gross margin inched up 750 basis points to a record 38%, compared to 30.5% last year, due to strong full-price selling, lower outlet revenues and a more streamlined distribution and reverse logistics network.

Looking ahead, the company forecasts return on invested capital in excess of 30% by fiscal 2021, an increase from 22% in fiscal 2018 and 10% in fiscal 2017.

Shares of Weight Watchers (WTW) jumped after JPMorgan (JPM) initiated coverage of the stock with an overweight rating on a positive view of the company's revenue growth via its digital program.

Disclosure: The author holds no positions in any stocks mentioned.

About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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