Two retailers released earnings results for the fourth quarter of fiscal 2018 on Tuesday after the closing bell.
Shares of Ross Stores Inc. (ROST, Financial) were surprisingly down 3.21% to $91.15 in after-hours trading on Tuesday after matching consensus on non-GAAP earnings of $1.13 per share.
Revenue of $4.1 billion, which was flat from the prior-year quarter, beat expectations by $50 million.
For full-year 2018, Ross Stores posted a 6% increase in revenues to nearly $15 billion, a 0.5% jump in earnings before taxes to $2.05 billion and a 14.3% growth in GAAP net earnings to $1.6 billion, or $4.26 per share. In addition, the Dublin, California-based retailer also noted a 4% increase in total comparable sales in full fiscal 2018, which was in line with the gain recorded in full fiscal 2017 over the previous corresponding period.
Looking ahead to full fiscal 2019, which will end on Feb. 1, 2020, Ross Stores guided for non-GAAP earnings ranging between $4.3 and $4.5 per share versus a consensus of $4.5. The company forecasted 1-2% growth in same-store sales.
Shares of Ross Stores were trading around $94.2 at close on Tuesday for a market capitalization of $34.9 billion. The stock increased 25% over the 52 weeks through March 5 and is now above the 200-, 100- and 50-day simple moving average lines. The closing price on Tuesday was 28% off the 52-week low of $73.76 and 10.8% below the 52-week high of $104.35.
Wall Street issued an overweight recommendation rating with an average target price of $95.22 per share of Ross Stores.
In addition, the company has hiked the cash quarterly dividend by 13.3% to 25.5 cents from the previous 22.5 cents. The company will pay the dividend on March 29 to shareholders of record March 18. The ex-dividend date is scheduled for March 15. Based on the share price at close Tuesday, the increased cash quarterly dividend gives a forward dividend yield of 1.08%. Ross Stores has paid a dividend since 1994.
Shares of Urban Outfitters Inc. (URBN, Financial) were inexplicably down 3.9% to $29.165 in after-hours trading on Tuesday after beating consensus by 1 cent on GAAP earnings of 80 cents per share.
In line with expectations, revenue increased 3.7% year-over-year to $1.13 billion in the final quarter of fiscal 2018, which ended on Jan. 31, 2019.
During the quarter, comparable retail segment net sales rose 3% thanks to double-digit growth in the digital channel. The Free People brand and the Urban Outfitters brand increased 4% while the Anthropologie Group brand rose 2%. In addition, the Philadelphia, Pennsylvania-based retailer also recorded a 1.7% increase in gross profit margin to 33% of total fourth-quarter revenues.
For full-year 2018, Urban Outfitters posted a 9.3% increase in total revenues to $3.95 billion, a 46.7% boost in operating income to $381.3 million, a 175.3% growth in net income to $298 million or $2.72 per diluted share and 5.4% upside in total inventory to $370.51 million.
Shares of Urban Outfitters were trading around $30.4 at close on Tuesday for a market capitalization of $3.27 billion. The stock decreased 18% over the 52 weeks through March 5 and is now below the 200-, 100- and 50-day simple moving average lines. The closing price on Tuesday was 1.9% above the 52-week low of $29.84 and 72.7% below the 52-week high of $52.50.
Wall Street issued an overweight recommendation rating on shares of Urban Outfitters with an average target price is $39.18 per share.
The company doesn’t pay a dividend.
Disclosure: I have no positions in any securities mentioned.
