Foot Locker (FL) reported earnings on Fri 22 May 20 (b/o)

** charts before earnings **

 

** charts after earnings **

Foot Locker misses by $0.44, misses on revs; Q1 comps -42.8%; decided to temporarily suspend the cash dividend beginning with the Q2 payment 

Reports Q1 (Apr) loss of $0.67 per share, excluding non-recurring items, $0.44 worse than the S&P Capital IQ Consensus of ($0.23); revenues fell 43.4% year/year to $1.18 bln vs the $1.31 bln S&P Capital IQ Consensus. First quarter comparable-store sales decreased 42.8 percent.

Actions taken by the Company to preserve cash and increase liquidity included: borrowing $330 million under the Company's $400 million credit facility; limiting capital expenditures to essential projects and reducing the full year capital expenditure forecast by 50% to $138 million; minimizing non-essential spending, including reductions in marketing, extending payment terms, limiting rent payments, and reducing merchandise purchases; and reducing salaries and deferring incentive compensation for the CEO and senior executives.

Additionally, while Foot Locker remains committed to returning capital to shareholders, the Company's Board of Directors has decided to temporarily suspend the cash dividend beginning with the second quarter payment. The Board will continue to evaluate the dividend policy on a quarterly basis. As previously disclosed on April 22, the Company also temporarily suspended its share repurchase program.

-=Tupperware (TUP) suspends quarterly dividend

Tupperware Brands Corporation today announced Friday that its Board of Directors has decided to suspend the company's quarterly common dividend. The Capital Allocation Committee of the Board and management are working together to improve financial flexibility and drive profitability in the short term.

-=Nokia (NOK) reported earnings on Thur 24 Oct 19 (b/o)

Nokia reports EPS in-line, beats on revs; lowers FY19 and FY20 EPS guidance; pauses dividend

Reports Q3 (Sep) earnings of 0.05 per share, in-line with the S&P Capital IQ Consensus of 0.05; revenues rose 4.2% year/year to 5.69 bln vs the 5.59 bln S&P Capital IQ Consensus.

Co issues in-line guidance for FY19, sees EPS of eUR0.18-0.24 vs. 0.23 S&P Capital IQ Consensus, updated from EUR 0.25 - 0.29 prior.

Co issues downside guidance for FY20, sees EPS of eUR0.20-0.30 vs. 0.36 S&P Capital IQ Consensus, updated from EUR 0.37 - 0.42 prior.

On October 24, 2019, the Board resolved to not distribute the third and fourth quarterly instalments of the dividend for the financial year 2018, in order to: a) guarantee Nokia's ability to increase 5G investments, b) continue investing in growth in strategic focus areas of enterprise and software and c) strengthen Nokia's cash position. This is in accordance with Nokia's dividend policy, which states that dividend decisions are made taking into account Nokia's cash position and expected cash flow generation. Over the long term, Nokia continues to target to deliver an earnings-based dividend. The Board will seek a dividend authorization from the next Annual General Meeting, and will continue to review dividend distributions on a quarterly basis. The Board expects to resume dividend distributions after Nokia's net cash position improves to approximately EUR 2 billion.

Nokia’s share price tanked by nearly 25% at one point today—the biggest daily drop since at least 1991—after the Finnish telecom equipment vendor announced a sudden and acute shrinking of profit in its latest quarter. Slashing its profit outlook through 2020, Nokia said it would suspend its dividend for the next six months.

Making fancy new equipment for 5G installations is expensive, said CEO Rajeev Suri in published remarks (pdf). He also cited trouble raising prices—especially in China, where its sales have slumped—and the expense of absorbing Alcatel-Lucent, the French telecom equipment giant Nokia bought in 2016.

The beginning buildout of 5G—as this newest generation of mobile wireless network technology is known—was supposed to be a bonanza for Nokia. What gives?

Nokia’s challenges with 5G and Alcatel-Lucent are telling, as is the cratering of its network R&D, which fell 7% versus the same quarter a year ago. Its struggles encapsulate the intrinsic mismatch of corporate oligopoly and innovation.

Though hard to tell from its glum earnings, Nokia very literally dominates the telecom equipment market. It has only two major competitors: Stockholm-based Ericsson, and Huawei, which is headquartered in Shenzhen.

Unlike Ericsson, Nokia boasts an end-to-end suite of equipment and services. And, of course, Huawei has been sidelined from many key markets by government suspicious of possible ties to the Chinese government, and battered by US policies threatening to block its use of American technology as components in its systems.

-=Tile Shop (TTS) reported earnings on Tue 22 Oct 2019 (b/o)

Tile Shop misses by $0.04, reports revs in-line; suspends dividend and cancels share repurchase program, will delist and deregister its common stock

Reports Q3 (Sep) loss of $0.03 per share, $0.04 worse than the S&P Capital IQ Consensus of $0.01; revenues fell 3.7% year/year to $85.94 mln vs the $85.99 mln S&P Capital IQ Consensus. Comparable store sales decreased $3.1 million, or 3.5%, for the third quarter of 2019 compared to the third quarter of 2018 primarily due to lower customer traffic. Net sales generated by stores not included in the comparable store base decreased $0.2 million.

"We've undertaken a thorough and thoughtful review of our cost structure, including costs associated with being a Nasdaq-listed and SEC reporting company. After careful consideration, our Board of Directors decided to voluntarily delist from Nasdaq and deregister with the SEC as we believe the savings that will benefit our shareholders outweigh the advantages of continuing as a Nasdaq-listed and SEC reporting company."

The Board of Directors decided to suspend the Company's quarterly cash dividend and cancel the Company's share repurchase program, each effective immediately, to focus on debt reduction and continued investment in strategic initiatives.

-=Teva Pharma (TEVA) unveils restructuring plan

Teva Pharma unveils restructuring plan and additional measures to improve business and financial performance, workforce to be reduced by over 25%, dividend suspended on ordinary shares and ADSs  

The two year restructuring plan announced today is intended to reduce Teva's total cost base by $3 billion by the end of 2019, out of an estimated cost base for 2017 of $16.1 billion. More than half of the reduction is expected to be achieved by the end of 2018. The company expects to record a restructuring charge as a result of the implementation of the plan in 2018 of at least $700 million, mainly related to severance costs, with additional charges possible following decisions on closures or divestments of manufacturing plants, R&D facilities, headquarters and other office locations.

• These steps are expected to result in the reduction of 14,000 positions globally -- excluding the impact of any future divestments -- over 25% of Teva's total workforce -- over the next two years.
• The majority of the reductions are expected to occur in 2018, with most of the affected employees being notified within the next 90 days. Restructuring efforts will be done in accordance with applicable local requirements. Consultations with the relevant employee representatives will begin in the near term.
• In addition to the restructuring plan, Teva is announcing the following measures to address the company's financial situation:
  • The company will immediately suspend dividends on ordinary shares and ADSs, while dividends on mandatory convertible preferred shares will be evaluated on a quarterly basis per current practice
  • Teva's annual bonus for 2017 will not be paid due to the fact that the company's financial results are significantly below our original guidance for the year.
  • The company will continue to review the potential for additional divestment of non-core assets

Teva will provide full guidance for 2018 in February with the annual results and will share a longer-term strategic direction for the company later in 2018.

=Mattel (MAT) reported earnings on Thur 26 Oct 2017 (a/h)

Mattel misses by $0.49, misses on revs; suspends quarterly dividend 

• Reports Q3 (Sep) earnings of $0.09 per share, excluding non-recurring items, $0.49 worse than the Capital IQ Consensus of $0.58; revenues fell 13.1% year/year to $1.56 bln vs the $1.82 bln Capital IQ Consensus.
  • For the third quarter, net sales in the North American Region decreased by 22% as reported and in constant currency, versus the prior year's third quarter; gross sales in the North American Region also decreased by 22% as reported and in constant currency, primarily driven by lower sales as a result of Toys "R" Us filing for bankruptcy and tighter retailer inventory management. In the International Region, net sales increased by 1% as reported, and decreased by 1% in constant currency; gross sales in the International Region were flat as reported, and decreased by 2% in constant currency.
• "Our Q3 performance was clearly disappointing, led by compression in North America driven by Toys "R" Us filing for bankruptcy, tighter retailer inventory management and challenges with certain underperforming brands," said Margo Georgiadis, CEO of Mattel. "Despite these challenges, we are making strong progress against our transformation plan, which we believe will deliver step change revenue growth and profitability. To accelerate progress toward these goals, with our new leadership team in place, we are taking bold steps to simplify our business and right size our cost structure in alignment with our strategy. This will enable us to move faster to realize our most attractive opportunities as well as to unlock significant resources to invest in our transformation. We are optimistic about the future of Mattel and our ability to reposition the company to drive enhanced returns for shareholders."
• The Board of Directors determined to suspend the Company's quarterly dividend beginning in the fourth quarter of 2017 in order to increase financial flexibility, strengthen the balance sheet and facilitate strategic investments. The suspension of the quarterly dividend, which was previously $0.15 per share, is expected to result in additional liquidity of approximately $50 million per quarter. 

=Stein Mart (SMRT) reported earnings on Wed 17 May 17 (a/h)

** charts after earnings **

 

Stein Mart misses by $0.07, misses on revs; co lowers gross profit rate, now sees it significantly less than previously expected, co also suspends quarterly dividend and reduces CapEx:

• Reports Q1 (Apr) earnings of $0.08 per share, $0.07 worse than the two analyst estimate of $0.15; revenues fell 5.2% year/year to $337.3 mln vs the $362.21 mln two analyst estimate
  • Comparable store sales decreased 7.6 percent primarily due to lower traffic.
    Ecommerce sales were up 38 percent over last year's first quarter.
• Co continues to expect its total sales to be at least 4% above its comparable store sales for the year due to net new stores and this year's additional 53rd week
• Co now expect its gross profit rate will be about the same as the fiscal 2016 rate
• This is significantly less than previously estimated primarily due to higher first and second quarter markdowns to reduce inventories for the remainder of the year
  • Co said, "If first quarter sales trends continue into the second quarter, we estimate that our loss per share will be in the range of $0.20 to $0.25 for the second quarter." Consensus calls for a loss of ($0.02)
  • Co said, "We continue to experience softer than planned store traffic and sales. As a result, markdowns were significantly higher for the quarter despite our focus on inventory management. Given the uncertain retail environment, we are being more conservative planning fall, keeping a higher percentage of our buying in reserve to opportunistically take advantage of any sales upside. We expect to see additional inventory reductions as the year progresses," said Hunt Hawkins, Chief Executive Officer
• Suspending the $0.075 quarterly dividend will free up approximately $14 million of cash to apply against debt on an annual basis
• Capital expenditures totaled $7.2 million for the first quarter of 2017 compared to $11.3 million in 2016. Planned capital expenditures for fiscal 2017 have been decreased to ~$24 million or $21 million net of tenant improvement allowances. Capital expenditures were $42 million or $36 million net of tenant improvement allowances in fiscal 2016.

=GNC Holdings (GNC) reported earnings on Thur 16 Feb 2017 (b/o)

GNC Holdings misses by $0.29, reports revs in-line; suspends quarterly dividend:

• Reports Q4 (Dec) earnings of $0.07 per share, excluding non-recurring items, $0.29 worse than the Capital IQ Consensus of $0.36; revenues fell 7.8% year/year to $569.9 mln vs the $571.79 mln Capital IQ Consensus.
  • Revenue in the U.S. and Canada segment decreased $41.1 million, or 8.0%, to $472.6 million for the three months ended December 31, 2016 compared with $513.7 million in the prior year quarter.
  • Revenues in the International segment decreased $9.0 million, or 18.5%, to $39.7 million in the current quarter compared with $48.7 million in the prior year quarter.
  • Revenues in the Manufacturing / Wholesale segment, excluding intersegment sales, decreased $4.6 million, or 7.4% to $57.7 million for the three months ended December 31, 2016 compared with $62.3 million in the prior year quarter.
• Co suspends dividend  (was Div/yield 0.20/10.96):
  • By suspending what has been a $0.20 per share quarterly dividend, the Company intends to reallocate approximately $55 million of cash annually, primarily to reduce debt through the pay-down of its revolver.
• Peers include: Vitamin Shoppe (VSI).