On this episode of Stock Movers:
- Walmart (WMT) shares fell after profit missed expectations for the first time in three years, overshadowing higher sales. Adjusted earnings per share came in at 68 cents for the second quarter, six cents lower than what Wall Street expected. The world’s largest retailer cited a rise in insurance claims, legal charges and restructuring costs as factors weighing down its profit. Claims, which include general liability and workers’ compensation expenses, particularly dragged down earnings as the costs of settling or going to court have risen. The number of incidents has declined, and these charges are expected to moderate as the year progresses.
- Coty (COTY) slumped after forecasting steep sales declines will continue as retailers clear out existing inventory and consumer demand remains tepid in the face of an uncertain economic outlook. Shares sank the most since 2020, wiping off as much as $968 million in market value. The struggles come at the end of a five-year turnaround initiative aimed at reinvigorating growth and amid reports that the company is contemplating selling off its high-end brands to peer Interparfums Inc. The lower-end brands, which include Covergirl and Rimmel cosmetics alongside fragrances for Adidas and Nautica, could also be sold in a separate transaction, Women’s Wear Daily said in June.
- A slide in shares of Cracker Barrel (CBRL) deepened on Thursday as a conservative backlash to the restaurant chain’s logo change intensified across social media. Shares of the Southern-inspired casual dining operator, known for its homestyle cooking, fell as as much as 15% as negative posts, including one from Donald Trump Jr. after the market close the prior session, flooded X. The notable drop follows Cracker Barrel’s announcement Tuesday that it would be removing the image of an old man leaning against a barrel from its logo, leaving just the words Cracker Barrel.
See omnystudio.com/listener for privacy information.
