Text Resize
Subsribe to RSS Feed

Wednesday June 16, 2021

Finance News


Dave & Buster's Reports Earnings

Dave & Buster's Entertainment, Inc. (PLAY) released its latest quarterly earnings on Wednesday, March 31. The restaurant and entertainment company reported impacted earnings for the quarter and the full year.

The company reported revenue of $116.8 million for the fourth quarter. This was down from revenue of $347.2 million at this time last year. Revenue for the full year was $436.5 million.

"During the first eight weeks of the first quarter, sales at our fully operational comp stores achieved 74% of 2019 levels with total sales of approximately $150 million, representing our strongest performance since COVID started," said Dave & Buster's CEO Brian Jenkins. "We achieved our second consecutive month of positive enterprise level EBITDA [earnings before interest, taxes, depreciation and amortization] in the month of February, the first full month of fiscal 2021, and expect to generate enterprise-level EBITDA profitability for the first quarter, a significant milestone in our ongoing business recovery."

Dave & Buster's reported a quarterly net loss of $56.8 million, or $1.19 per share. Last year at this time, the company reported net income of $25.0 million, or $0.80 per share, for the quarter. The company reported a net loss of $207.0 million for the full year.

The company began the quarter with 104 open stores. As of the end of the quarter that improved to 107 open stores. Throughout the quarter, Dave & Buster's open stores were subject to reduced hours and capacity limits under varying pandemic-related restrictions. At fully-operational locations, comparable sales reached 52% of 2019 comparable sales. The company's outlook for first quarter revenue is between $210 and $220 million, with four new stores expected to open during the quarter.

Dave & Buster's Entertainment, Inc. (PLAY) shares ended the week at $45.31, down 7.8% for the week.

Lululemon Reports Fourth Quarter Earnings

Lululemon Athletica, Inc. (LULU) released its quarterly earnings report on Tuesday, March 30. The athletic-apparel company's quarterly revenue and earnings increased year-over-year.

Lululemon reported quarterly revenue of $1.7 billion. This is up 24% from last year's fourth quarter revenue of $1.4 billion. For the full year, revenue reached $4.4 billion.

"I'm proud of how we navigated this past year and delivered for our employees, guests and shareholders," said Lululemon CEO Calvin McDonald. "Our continued growth demonstrates the strength of lululemon -- before, during and as the pandemic subsides. We are still in the early innings of our growth, fueled by exciting innovations that create even more opportunity into the future. All of us on the leadership team have so much gratitude for our teams and their agility during these unprecedented times."

The company announced earnings of $329.8 million for the quarter, up from earnings of $298.0 million one year ago. For the full year, net income decreased to $588.9 million.

Lululemon's comparable sales grew 21% in the quarter. The company opened a net of six new company-operated stores in the fourth quarter. The company started the quarter with 515 open stores and ended the quarter with 521 open stores. Lululemon did not provide same-store comparison sales due to temporary store closures stemming from the COVID-19 pandemic.

Lululemon Athletica, Inc. (LULU) shares closed at $301.07, down 5.2% for the week.

Chewy Reports Fourth Quarter and Full Year Earnings

Chewy, Inc. (CHWY) announced fourth quarter and full year earnings on Tuesday, March 30. The company reported positive net income in the quarter, causing shares to jump more than 7%.

Chewy reported quarterly net sales of $2.04 billion, up 51% from $1.35 billion during the same quarter last year. For the full year, net sales reached $7.15 billion.

"2020 was an incredibly challenging and unpredictable year for all of us," said CEO of Chewy Sumit Singh. "During this time, Chewy performed exceptionally well and made significant strategic and operational progress. Specifically, we grew net sales by 47% year over year, increased our customer base by 43% year over year, delivered our first full year of positive adjusted EBITDA, and generated the company's first quarter of positive net income in the fourth quarter of 2020."

Chewy reported net income of $21.05 million for the quarter, up from a loss of $60.94 million reported in this quarter last year. For the year, the company reported net losses of $92.50 million.

Chewy recorded its first ever profitable quarter during the fourth quarter. For the full year, the company amassed 5.7 million customers. Chewy ended the year with more than 19 million active customers, leading to strong sales growth year-over-year.

Chewy, Inc. (CHWY) shares closed at $82.71, up 4.2% for the week.

The Dow started the week at 33,088 and closed at 33,153 on 4/1. The S&P 500 started the week at 3,969 and closed at 4,020. The NASDAQ started the week at 13,104 and closed at 13,480.

Treasury Yields Dip

Yields on U.S. Treasurys fell after key economic data and infrastructure news was released. The President revealed details on an infrastructure investment plan. The Labor Department reported higher than expected jobless claims.

On Wednesday, President Biden provided details on a proposed $2 trillion infrastructure plan. The plan includes rebuilding highways, installing new electric vehicle charging stations, building energy-efficient homes and constructing new electric power lines.

"The plans as announced have a long and tortuous journey to make it through Congress and thus the end result is likely to be nine months or more away and may well look very different indeed once it has been through that political wranglings on the Hill," said Aberdeen Standard Investments' senior investment manager, James Athey. "If investors are weighing the risks appropriately, there shouldn't be much impact on markets in the short term."

First-time unemployment insurance claims jumped to 719,000 for the week ending March 27. This is higher than the previous week's 658,000 claims and the 675,000 claims expected by economists. Continuing claims dropped by 46,000, bringing the total to just under 3.8 million.

"Taking the two weeks together it's clear that the trend in claims is falling," said Pantheon Macroeconomics' chief economist, Ian Shepherdson. "We expect a sustained sharp decline in the second quarter as the economy reopens, making it easier for businesses under financial stress to hold onto employees."

The 10-year Treasury note yield closed at 1.68% on 4/1, while the 30-year Treasury bond yield was 2.34%.

Mortgage Rates Up Slightly

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, April 1. Rates for 30-year fixed mortgages continued in an upward trend.

This week, the 30-year fixed rate mortgage averaged 3.18%, up from last week's average of 3.17%. Last year at this time, the 30-year fixed rate mortgage was at 3.33%.

The 15-year fixed rate mortgage averaged 2.45% this week, unchanged from last week. During the same time last year, the 15-year fixed rate mortgage averaged 2.82%.

"Although mortgage rates remain low, we are beginning to see a pullback by those looking to enter the housing market," said Freddie Mac's Chief Economist, Sam Khater. "In fact, homebuyer demand has gone from 25% above pre-COVID levels at the start of the year, when mortgage rates hit record lows, to 8% above pre-COVID levels today."

Based on published national averages, the national savings rate was 0.07% as of 4/1. The one-year CD averaged 0.15%.

Published April 2, 2021
Subsribe to RSS Feed

Previous Articles

GameStop Reports Earnings

Lands' End Reports Earnings

Stitch Fix Posts Earnings

Target Hits the Mark

Royal Caribbean Group Reports Earnings

  • Bequests
    Joe and Anna have been faithful supporters of our organization. They believe it is important to help further our mission.
  • Using a Beneficiary Designation to Make a Gift to Charity
    Using a Beneficiary Designation to Make a Gift to Charity
    Joanne and her late husband Hal had been longtime supporters of our organization. Recently, Joanne's children encouraged...
  • Fixed Income for Retirement
    Fixed Income for Retirement
    After working for decades as a pediatrician in a small town, Patricia is ready to retire.
  • Tax-Free Sale
    Tax-Free Sale
    Howard and Lynn were both age 55 when they purchased some vacant land a few miles outside of town. They thought real estate would be a good investment that could be sold later for a profit.
  • Capital Gains Tax Bypassed
    Capital Gains Tax Bypassed
    Peter and Gail were nearing retirement. Over the years, with the help of their financial advisor, they made solid investments in securities and built a sizable portfolio.
  • Peace of Mind Gift Annuity
    Peace of Mind Gift Annuity
    Many years ago, Clara bought a home. Since she was very pleased with her home, she bought stock in the company that built the home.
  • Endowment Gift
    Endowment Gift
    Pat and Shelly were recently married. They both had been dedicated volunteers at their favorite charity for many years.
  • Sale and Unitrust
    Sale and Unitrust
    Gene and Carol purchased stock in a small medical service company several years ago. The company has done well.
  • The Retirement Unitrust
    The Retirement Unitrust
    Mary grew up on a farm. When her parents passed away, she and her husband Bill inherited the farm.
  • Property Turns Into Income
    Property Turns Into Income
    Miranda lived in the family home where she and her spouse had raised their three children. After her spouse passed away, Miranda found it increasingly difficult to care for her property.
  • Flexible Deferred Gift Annuity
    Flexible Deferred Gift Annuity
    Luis is a 54-year-old executive at a large healthcare company. He purchased company stock during years when the stock price was low, and now the stock has grown substantially in value.
  • Part Gift and Part Sale
    Part Gift and Part Sale
    Susan and Kevin bought a vacant lot along Lake Michigan many years ago. They had planned to build a second home so that their family could spend their summers along the lake.
  • Current Gifts
    Current Gifts
    As is the case with many families, there are times each year when Jim and Sharon focus their attention on gift giving.
  • Gift of a Bank Account When No Longer Needed (POD)
    Gift of a Bank Account When No Longer Needed (POD)
    Keith has been a faithful supporter of The Marfan Foundation and makes regular gifts to support our work.
  • Transferable on Death (TOD) Gifts
    Transferable on Death (TOD) Gifts
    Harold and Jeanne married after meeting at an event The Marfan Foundation held for our donors. They wanted to leave a legacy gift...
  • A Bequest to Further Good Work
    A Bequest to Further Good Work
    Nancy and David were dedicated volunteers. Over the years, they had seen many individuals helped by the good work of their favorite charity.
  • Deferred Gift Annuity
    Deferred Gift Annuity
    Several years ago, Larry and Allison invested $30,000 in what they believed to be an attractive stock.
  • What Will You Do with Your Unspent Retirement Savings?
    What Will You Do with Your Unspent Retirement Savings?
    Michael and Kelly were retired engineers with two adult children. They owned a home, some stocks, and IRAs.
  • Gift Annuity for Real Estate
    Gift Annuity for Real Estate
    Jonathan purchased his home many years ago for $80,000. The home is now worth $420,000. Jonathan wants to sell his home and buy a condo for $130,000.
  • A Bequest to Save Taxes
    A Bequest to Save Taxes
    Thomas was a widower who had a great love for our organization. As an individual who had directly benefited from our work, Thomas wanted to thank us with a gift from his estate.
  • Leading for the Future
    Leading for the Future
    Luke and Cynthia spent many years volunteering and supporting their favorite charity. They wanted to give back in a way that would help fulfill its mission.
  • Give it Twice Trust
    Give it Twice Trust
    While visiting her favorite charity's website, June came across the idea of a give it twice trust. She contacted the charity for more information.
  • Providing for Our Children's Future
    Providing for Our Children's Future
    Ron and Kathy worked for many years building their nest egg for retirement.
  • Bequest of Insurance
    Bequest of Insurance
    Marla and Wayne purchased a life insurance policy many years ago to create security for their children's future.
  • Testamentary Charitable Remainder Unitrust: Have Your Cake and Eat it Too!
    Testamentary Charitable Remainder Unitrust: Have Your Cake and Eat it Too!
    We have all heard the saying "You can't have your cake and eat it too." This phrase describes a situation where we want two good things at the same time when that isn't possible.
  • A Personal Donor Story
    A Personal Donor Story
    "I want the work of the foundation to go forward whether I'm here or not"
    Estate planning is your final statement about the causes you care about