If Lululemon Athletica inc. (NASDAQ:LULU) shares are jumping on Thursday, Tailored Brands Inc (NYSE:TLRD) stock are climbing more than its peer after its strong quarterly numbers. The fact that both the companies belonged to the same sector made other stocks like Express, Inc. (NYSE:EXPR) to gain. However, Gap Inc (NYSE:GPS) is bucking the trend to post a loss.
Both Lululemon Athletica and Tailored Brands have reported their earnings beat on Wednesday after the market closed. Tailored Brands reported GAAP earnings of 58 cents a share compared to loss of 56 cents a share in the year-ago quarter. On an adjusted basis, EPS would have increased to 68 cents a share from 50 cents a share in the comparable period. Total net sales were $846.93 million. Both exceeded the Street analysts’ estimate of $0.55 a share and $832.72 million revenue.
Following this, S&P boosted its price target by $11 from $17 to $28 based on PE of 13.3X for the fiscal year 2018. This also narrowed discount compared to its peers due to some stabilization signs at jobs. However, there is no change in Hold rating on the stock.
Analyst Amobi cited on track cost savings from JAB-related to boost his EPS estimate for the fiscal year by 12 cents a share to $1.82 and by eleven cents a share to $2.10 for the fiscal year 2018.
The brokerage noted that the most recent quarter EPS topped its expectations by 12 cents a share despite sales declining by two percent hurt by JAB comps. However, the analyst noticed gross margin and adjusted EBIT margins expansion by 140 basis points and 162 basis points restively. Amobi thinks that this is encouraging sign for Tailored Brands.
The company delivered earnings positive surprise for the second time in a row. Street analysts’ expect the company to report EPS of $1.70 for the current year and $1.98 for the next fiscal year.
The following stocks reacted after the two companies’ positive results:
- Express, Inc. (NYSE:EXPR) gained about 1.02 percent.
- bebe stores, inc. (NASDAQ:BEBE) advanced 4.63 percent.
- Zumiez Inc (NASDAQ:ZUMZ) edged up by 1.60 percent.
- Aeropostale Inc. (OTCMKTS:AROPQ) added 1.28 percent.
- Lululemon jumped 18.15 percent.
- Tailored Brands climbed 44.16 percent.
Express, Lululemon Athletica, Lulu, Tailored Brands,
NYSE:EXPR, NASDAQ:BEBE, NASDAQ:ZUMZ, OTCMKTS:AROPQ, NASDAQ:LULU, NYSE:TLRD