Dollar Tree, Best Buy, HP and others: main reports from 23 november
Many large retailers reported yesterday, and another manufacturer of office equipment. Here's how investors reacted to it. Dollar Tree (DLTR) — 144,7 $ (+9,2%) Revenue — $6.4 billion (+3,9%), earnings per share - 0,96 $ (−30,9%). Like many, chain of cheap stores faces high transportation costs due to supply disruptions. The company reported, that transport costs were higher, than expected. All this affected net income.. Dollar Tree also promised to expand the range with more expensive products.. Already in the first quarter of 2022, most of the goods in the store will cost 1,25 $. So the company plans to compensate for transportation and other expenses., and increase profitability. In 2015, following the purchase of the ineffective Family Dollar chain, the retailer's gross margin decreased from 35 to 30%. Now Dollar Tree intends to return its previous margins.. This is one of the requirements of Mantle Ridge - an activist company, which bought about 6% retailer shares. For the first time, the discounter chain started talking about price increases at the end of September., Two months ago. During this time, the company's shares have already grown by 70%. Best Buy (BBY) — 121 $ (−12,3%) Revenue — $11.9 billion (+0,5%), earnings per share - 0,96 $ (+35,1%). The electronics seller reported better than expected and even slightly raised its sales forecast for the year. But it didn't help stocks.. Demand for computers and other equipment has grown significantly during the quarantine. So, in 2020 Best Buy sales grew by 8% - a lot more, than in 2018 and 2019. Then the revenue added only 2%. Investors are now worried about the company's sales, because consumers are shifting their attention from technology to travel and other entertainment. Все это может вынудить Best Buy распродавать свои …
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