Michaels Stores gave downbeat outlook following drop in sales

The arts and crafts retailer Michaels Stores announced its earning of fiscal 3rd quarter as its revenue missed analysts’ outlook. The company posted an unforeseen drop in same-store sales.

Michaels Stores said its same-store sales dropped 2.0%, citing massive plunge in customer transactions, which was somewhat counterbalance by a surge in average ticket. Analysts though were expecting comparable-store sales growth of 1.3%.

Meanwhile in the last three month period adjusted earnings of 40 cents per weakened share dropped short of analysts’ estimations of 43 cents per share. Revenue surged 5% to $1.23 billion from last year, but was also less than analysts’ prospects of $1.26 billion.

Furthermore The Irving, Texas-based retailer also offered downbeat outlook for the holiday quarter and cut its full-year guidance.

Looking ahead in the fiscal fourth quarter, Michaels forecasts adjusted earnings per diluted share between 94 cents and 98 cents, while analysts are expecting earnings of 99 cents per share. Comparable-store sales are predicted to be in the range of flat to down 1.5%, compared to analysts’ forecasts for growth of 1.9%.

Moreover Company’s full-year adjusted earnings per diluted share are now estimated to fall between $1.86 and $1.90, less than the company’s prior expectations for earnings of $1.92 to $1.98 per share, and below Wall Street’s prediction of $1.94 per share.

Michaels Stores Chief Executive Chuck Rubin said in a statement that the company was “disappointed our plans did not result in expected comp and earnings growth.”

Royal Bank of Scotland Group (NYSE:RBS) settles with shareholder groups for $1.02 billion

UK lender Royal Bank of Scotland Group PLC(NYSE:RBS) said in a statement that it has to pay up to $1.02 billion to settle claims with stockholder groups over prerogatives that it lied to them in the lead up to an emergency rights issue during the fiscal crisis.

RBS said it had agreed settlements with three out of the five shareholder groups without confessing mistake and said that it would “forcefully defend” claims from any parties that wouldn’t resolve. The dispute relates to a GBP12 billion cash call just before RBS was bailed out by taxpayers in 2008. The GBP800 million has already been set aside in RBS’s accounts. RBS continues to negotiate with the remaining two groups and if no agreement is reached, then a hearing is due to start in 2017.

Stockholders were suing the bank for GBP4 billion following claiming management at the time weren’t honest about the bank’s fiscal shape when it selected them for funds. The bank said that 77% of those claims are now settled.

Meanwhile EDINBURGH based RBS, which is mostly owned by the state, initiated negotiation with the stockholder groups earlier this year. Management at the bank have wanted to resolve the row that has proved a trouble from a persistent reversal plan. One of the groups, the RBS Shareholder Action Group, which indicates thousands of retail financiers, has vowed not to settle as it wants RBS’s past management, including then Chief Executive Fred Goodwin, to face a case.

Furthermore RBS continue to face a number of legal fights, including having to thrash out multibillion-dollar payments with U.S. specialists over the deal of toxic mortgage-backed securities.

Ulta Salon, Cosmetics & Fragrance, (NASDAQ:ULTA) Earnings beat and upped forecast amid strong same-store sales

BOLINGBROOK, IL –based Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) again raised its forecast for the year as it reported its eighth successive quarter of big growth due to sturdy same-store sales.

Ulta Salon, Cosmetics & Fragrance, Inc.(NASDAQ:ULTA) stores, sells a massive range of products across price points, from $200 hair tools and esteemed brands like Lancôme to cheap brands such as Maybelline, has been increasing its store base as others are closing stores and reporting massive drops in sales.

In the meantime, Ulta has boosted its investment in e-commerce. In the company’s latest quarter, sales at stores open at least 14 months jumped 16.7%, mainly furthered by a 59% surge in online sales. The same-store sales results beaten the 14% to 15% clip the company had forecasted for and the 14.8% rate in the previous quarter.

Including everything for the October period, Ulta posted a profit of $87.6 million, or $1.40 a share, up from $71.1 million, or $1.11 a share, year over year, that is more than the $1.35 to $1.38 range the company itself had forecasted.

Meanwhile Revenue surged 24% to $1.13 billion. Analysts were expecting $1.11 billion in revenue.

For the full fiscal year, Ulta now predicts sales in the low twenties percentage range, that is more than its previous forecast for a high teens percentage. And earnings per share are predicted to grow in the high twenties percentage range, in contrast with previous forecast for mid-twenties percent growth.

Moreover for the current quarter, Ulta Salon, Cosmetics & Fragrance, (NASDAQ:ULTA) it predicts sales of $1.52 billion to $1.54 billion, with comparable sales surging 12% to 14%. However analysts have expected $1.51 billion in revenue. Per-share earnings are predicted in the range of $2.08 to $2.13, higher than the $2.05 analysts have forecasted.

China have put extra 10% TAX on Super Cars amid corruption crack down

According to the reports from Asia, Chinese government have imposed an additional 10% tax on super cars and other luxury models of price exceeding 1.3 million Yuan or $188,852, in an attempt to restraint in extravagant spending and to cut emissions,.

The ministry of finance has said that it is part of a broader effort by Chinese authorities against showy demonstrations of riches, which has already hit all kind of luxury brands.

In the recent years China has been a key market for high-end brands like Ferrari, Bentley, Aston Martin and Rolls-Royce.

All the top-end automakers in recent years increasingly have custom-made their luxury models to entice Chinese buyers.

It was reported that giants like Rolls-Royce and Aston Martin are set to unveil SUV models in the next year, seen as an answer to a Chinese fondness for large cars over sports vehicles.

“In order to guide rational consumption, and promote energy-saving emission reductions, the state Council has approved an additional consumption levy on ultra-luxury cars,” a statement by the Ministry of Finance said.

The latest text is said to be implemented from Thursday December 1, 2016, even though analysts said it is unlikely to be a major off-putting factor for the super-rich people in the country.

Earlier this year Chinese President Xi Jinping has started a strong movement against corruption, and called it a foundation of his governing agenda. Major cracked down on luxury spending is considered as s part of that agenda.

Shoe Carnival, (NASDAQ:SCVL) fell short of prediction following soft demand for seasonal items

Family footwear retailer Shoe Carnival, Inc. (NASDAQ:SCVL) on Monday November 28, 2016 posted quarterly results missing outlooks citing spineless demand for seasonal items.

The company also dropped its full year guidance during the announcement. Shoe Carnival stock dropped 10% to reach $27.18 in recent after-hours trading.

For the economic year closing in January, the Shoe Carnival, (NASDAQ:SCVL) slash its earnings outlook to $1.46 to $1.51 a share on the revenue of $1.002 billion to $1.006 billion, from a previous prediction of $1.58 to $1.65 a share on revenue of $1.012 billion to $1.016 billion.

For its third quarter ended Oct. 29, the company’s comparable sales, which comprises sales at stores open at least 13 months and its online sales, dropped 0.4%.

Meanwhile company’s Chief Executive Cliff Sifford said that sluggish sales of boots and other seasonal products in the second half of the quarter, which sustained this month and added to a comparable sales plunge of 3.3% for November. Mr. Sifford also said the company plans to step up campaigns on seasonal items to boost sales and meet inventory targets.

Including everything, The footwear and accessories retailer’s posted a quarterly profit of $9.7 million, or 54 cents a share, up from $9.4 million, or 47 cents a share, year over year. Revenue surged 1.8% to $274.5 million.

Moreover Analysts polled by Thomson Reuters predicted per-share profit of 56 cents and revenue of $278.3 million. In the meantime Gross margin slipped to 29.9% from 30.1% year over year.

Energy companies are investing again after 2 years gap to bolster overall economy

According to reports U.S. oil and gas companies taken a U-turn to boost investment in oil wells and other energy stocks after a gap of almost two years. That activity has somewhat given a slight encouragement to overall economic growth in this period.

American energy firm completely cut business spending following crude-oil prices plunged in 2014. The stark cutbacks flowed through the economy, pushing down overall progress and hitting the labor market. Now, with oil holding above bottom level prices and firms working at lower costs, some companies are watchfully surging oil production.

“Evidence is emerging that the deep freeze in business investments is beginning to thaw,” said Bernard Baumohl, chief global economist at the Economic Outlook Group. “For one, energy prices are firming, and this has set the stage for the country’s more efficient oil producers to ramp up spending again.”

Although it is true that business investment and the wider economy are barely roaring back. However there are positivity in the air after long time that energy stock has at least reached an inflection point while other sectors seem powerless to gain much traction, one factor that may help balance out otherwise irregular evolution.

In the meantime according to government data, spending on mining equipment surged in the last quarter for the first time in almost two years. Meanwhile Spending on structures related to exploration and drilling, dropped at the gentlest rate since the end of 2014 and looks composed for a minor comeback. The number of rigs boring for oil in the U.S., a proxy for activity in the sector, has surged by 50% to 474 since hitting the bottom in May this year.

Gap Inc. (NYSE:GPS) and Abercrombie & Fitch (NYSE:ANF) struggling to end an ongoing slide in turnover

Stock of two U.S. largest outfit retailers plunged on Friday after undesirable third quarter sales and a laidback estimate for the decisive holiday shopping season.

Gap Inc. (NYSE:GPS) announced earnings of seventh successive quarter of dropping revenue and mentioned that less than expected people were visiting stores.

Meanwhile another giant Abercrombie & Fitch Co. (NYSE:ANF) stock dropped 13.9% on deprived sales and a frail outlook. In the recent months both companies have been trying to rejuvenate their brands, with inadequate success.

In the meantime Neil Saunders, who is the chief executive of Conlumino, the retail research company, highlighted the fault for Abercrombie & Fitch’s poor statistics on poor communication with customers also about the alterations it has made to its fashion lines.

The company was at one time famous for its picture-perfect models and sales assistants, as well as Abercrombie & Fitch marked garments, the retailer has shifted “towards a more inclusive and gentler approach with an emphasis on stylish, quality clothing”, said Mr Saunders.

Nevertheless, a “confusing” marketing movement, poor foot traffic at both its leading and mall-situated shops and warmer weather resulted a 6% fall in third quarter sales to $821.7m and an 80% slump in profit to $7.9m.

Furthermore Abercrombie & Fitch (NYSE:ANF) announced that it foresees trade to remain challenging for the rest of the year, which includes Black Friday, the post-Thanksgiving Day shopping jamboree, as well as Christmas and the New Year.

Gap also mentioned the similar causes in the current quarter covering the holiday period and also announced to shutter almost 65 stores this year in contrast to a previous prediction of 50 closures. The company said in October that is set to close down Banana Republic outlets in the UK to focus on its North American business.

Gap (NYSE:GPS) sales dropped by 2% and profit dipped to $204m for the third successive period. While its Old Navy brand flourished with revenue up 3%, sales at Gap Global and Banana Republic both dropped by 8%.

NetApp (NASDAQ:NTAP) earnings beat prediction as the company continues shakeup

Data-storage firm NetApp Inc. (NASDAQ:NTAP) announced results for its second quarter with its profit topping outlook amid company massive shakeup process.

NetApp projects adjusted profit came at 72 cents to 77 cents on $1.33 billion to $1.48 billion in revenue in the quarter. Meanwhile Analysts were forecasting the profits to come in the range of 65 cents on $1.36 billion in revenue.

NetApp (NASDAQ:NTAP) was posting lower profit for the last two years and even sales were dropping for three successive years. However the company managed to considerably cut down its payroll as it modifies with market changes and lower operating expenditures.

Early in November the company unveiled the news of an extra 6% in job cuts by the end of the current business year. The majority of those charges will be booked in the current quarter.

The Silicon Valley giants operating expenses dropped to $687 million in the second quarter, down 2% from the previous quarter and 7% year over year.

Over all, NetApp’s profit fell 4% to $109 million, or 38 cents a share. Exclusive of stock-based recompense and other items, profit surged to 60 cents a share from 46 cents year over year.

Meanwhile Net revenue dropped 7% to $1.34 billion as product revenue, which accounts for the majority of its business, weakened 13%.

NetApp (NASDAQ:NTAP) earnings reports is established on 4% less shares remaining, topped profit and adjusted profit forecasts while revenue was more or less in line with the outlooks. Overall company’s gross profit margin enhanced to 61.9% from 61.2% year over year.

ABN Amro set to layoff 1500 more workers to get more efficient

European lender ABN Amro Group NV announced another 1,500 layoffs in the coming years as it speed up shakeup process to cut costs and invest in digital services.

The bank said these job cuts will help to save as much as EUR400 million or $428.9 million, that will arrive on top of current shakeup plans that will also cost around 1,000 jobs. The measures will reduce the bank’s workforce by around 13% and generate a total of EUR900 million in savings by 2020, which ABN Amro said are needed to offset higher regulatory costs and investments in digital services.

Dutch lender ABN Amro recently posted a decent performance for the third quarter, with net profit surging 19% to EUR607 million, replicating lower loan-loss provisions and higher net interest revenue.

ABN Amro’s Chief Executive Gerrit Zalm, said in a statement that the constant streamlining efforts should make the bank “more digital and agile.”

Recently most of the lenders have been cutting back jobs. ABN Amro’s arch rival ING Groep NV last month announced that it would cut around 7.000 jobs in the next few years to enhance both efficiency and its digital assistances. Meanwhile, Rabobank Group is in the middle of layinf off 9,000 staff.

This ongoing trend of job cuts signals how banks’ business models are being upset by more severe capital necessities, record low interest rates and a major shift to online banking.

According to research done by the Dutch central bank  “lenders need to increase competence to protect effectiveness but the double-digit returns seen before the global fiscal crisis are no longer apparent,” it said.

Home Depot (NYSE:HD) announced upbeat results and raised its full-year outlook

A home improvement retailer Home Depot (NYSE:HD) announced its third quarter results, as it reported sustained sales growth during the period, another sign that the housing market is on the way up.

Home Depot (NYSE:HD) stock, which was on the downhill over the past three months, took the U-turn to surge 1.6% to $129.65 in premarket trading.

The company is now expecting earnings per share of $6.33 for the full year, adding to its previous outlook by two cents. It continues to expect sales to rise 6.3%.

Meanwhile the Atlanta-based company has continued to post growing sales as the housing market improves and Americans become more and more willing to spend on home-improvement projects. Dropping mortgage rates have retained higher prices within reach of many borrowers and prices have shot up in many U.S. housing markets over the past couple of years.

However the unexpected result of newly elect president has led to a surge in bond yields and, in turn, mortgage rates, potentially impacting housing prices.

Donald Trump has also made growing infrastructure investments over the next decade one of his top priorities as president, possibly boosting companies like Home Depot.

In the last quarter, sales at Home Depot stores open at least a year surged 5.5%.  Meanwhile Analysts were forecasting 4.5% growth.

In total, Home Depot posted an earnings of $2 billion, or $1.60 a share, that was up from $1.73 billion, or $1.35, year over year. Company’s revenue surged 6.1% to reach $23.15 billion.

In the meantime analysts were projecting earnings of $1.58 a share on $23.04 billion in sales.

According to the official figures, Home Depot operated 2,276 retail stores in all 50 states, Canada and Mexico by the quarter end. The company’s sales per square foot surged 4.3% as the amount the average customer spent go up 3%.