Foot Locker’s stock falls ahead of Q3 earnings; previous 2 reports were major disappointments

Shares of Foot Lock Inc. FL, -0.98% fell 0.7% in afternoon trading, on track for a fourth-straight loss, ahead of the athletic shoe and accessories retailer’s fiscal third-quarter results. The company is expected to report ahead of Friday’s open EPS of $1.08, sales of $1.94 billion and same-store sales growth of 5.1%. Investors may be worried about a repeat of recent history, as the stock plunged 19% on Aug. 23 the day second-quarter results were reported and tumbled 16% on May 24 after first quarter results. In both of those previous quarters, Foot Locker missed profit, sales and same-store sales expectations. The stock has tumbled 21% year to date, while the SPDR S&P Retail ETF XRT, -0.22% has gained 5.7% and the S&P 500 SPX, -0.07% has climbed 24%.

Former Baltimore Mayor Catherine Pugh Pleads Guilty For Fraud And Tax Evasion

BALTIMORE (AP) — The disgraced former mayor of Baltimore pleaded guilty Thursday to federal conspiracy and tax evasion charges in a case involving sales of her self-published children’s books.

Catherine Pugh pleaded guilty in federal court in Baltimore to conspiracy to commit wire fraud, conspiracy to defraud the government and tax evasion. But she pleaded not guilty to wire fraud. The pleas came a day after an 11-count indictment was unsealed.

The case involves sales of her self-published “Healthy Holly” books to non-profits and foundations to promote her political career and fund her run for mayor. Pugh, a Democrat who was elected in 2016, resigned under pressure in May.

A federal grand jury indictment returned on Nov. 14 also charged two Pugh associates, Gary Brown, Jr., and Roslyn Wedington, who have pleaded guilty to conspiracy and tax fraud.

Pugh became Baltimore’s second mayor in less than a decade to step down because of scandal. Former Mayor Sheila Dixon left office in 2010 as part of a plea deal for misappropriating about $500 in gift cards meant for needy families.

The charges against Pugh came as the city has struggled violent crime and other cases of public corruption, as well as a major police scandal. The city has had more than 300 homicides for five years in a row.

Nordstrom Does It Again in Q3

Nordstrom, Inc. (NYSE: JWN) released fiscal third-quarter financial results after markets closed Thursday. The retailer said that it had $0.81 in earnings per share (EPS) and $3.67 billion in revenue, compared with consensus estimates that called for $0.64 in EPS and $3.67 billion in revenue. The same period from last year had $0.67 in EPS and $3.75 billion in revenue.

Overall, sales trends improved across Nordstrom’s Full-Price and Off-Price businesses through aggressive actions taken during the year related to loyalty, digital marketing and merchandise assortment.

In Full-Price, net sales decreased 4.1% compared with the same period in fiscal 2018. Off-Price net sales increased 1.2%. Total company digital sales grew 7% and represented 34% of the business.

Looking ahead to the 2019 fiscal full year, the company expects to see EPS in the range of $3.30 to $3.50 and net sales decreasing 2%. Consensus estimates are calling for $3.29 in EPS and $15.52 billion in revenue for the full year.

Erik Nordstrom, co-president, commented:

Our third quarter earnings exceeded expectations, demonstrating substantial progress in the delivery of our strategy and strength of our operating discipline. Through our customer focus, we drove broad-based improvement in top-line trends. The consistent strength of our inventory and expense execution contributed to increased profitability for the quarter.

Shares of Nordstrom closed Thursday at $34.30, within a 52-week range of $25.01 to $54.65. The consensus analyst price target is $34.35. Following the announcement, the stock was up about 6% at $36.30 in the after-hours session.

Ross Stores Inc. Reveals Rise In Q3 Earnings

Ross Stores Inc. (ROST) reported a profit for its third quarter that rose from last year.

The company’s bottom line totaled $370.93 million, or $1.03 per share. This compares with $338.11 million, or $0.91 per share, in last year’s third quarter.

Analysts had expected the company to earn $0.97 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 8.5% to $3.85 billion from $3.55 billion last year.

Ross Stores Inc. earnings at a glance:

-Earnings (Q3): $370.93 Mln. vs. $338.11 Mln. last year.
-EPS (Q3): $1.03 vs. $0.91 last year.
-Analysts Estimate: $0.97
-Revenue (Q3): $3.85 Bln vs. $3.55 Bln last year.

-Guidance:
Next quarter EPS guidance: $1.20 to $1.25
Full year EPS guidance: $4.52 to $4.57

Splunk stock rises more than 6% after earnings beat

Splunk Inc. SPLK, +0.02% stock rose more than 6% in the extended session Thursday, after the software company topped Wall Street expectations for earnings and sales. The software company reported a fiscal third-quarter net loss of $57.6 million, which amounts to 38 cents a share, versus losses of $55.7 million, or 38 cents a share in the year-ago period. Revenue rose to $626.3 million from $481 million a year ago. Adjusted for stock-based compensation, among other items, earnings amounted to 58 cents a share. Analysts surveyed by FactSet expected adjusted earnings of 54 cents a share on sales of $604.6 million. "With the shift to a renewable model largely complete, momentum in our term license and cloud offerings drove 53% growth in total [annual recurring revenue] during the quarter," Chief Financial Officer Jason Child said in a statement. For the fiscal fourth quarter, analysts expect earnings of $1.03 a share and sales of $770 million. Splunk said it predicts fiscal fourth-quarter revenue of $780 million. Splunk stock has gained 21% this year, as the S&P 500 index SPX, -0.16% rose 24%.