Ralph Lauren posted an earnings beat, but the retailer offered an ugly outlook. The company said it expects global revenues to rise between six and eight percent in the next fiscal year, but investors weren’t focused on that. It waned its operating margins would decline as it spends money to further build its network of stores. That overshadowed an otherwise good earnings report. Shares fell about two percent to $148.81.
Shares of Hilton Worldwide were up after the hotel operator announced earnings and revenue that topped estimates. First-quarter profit almost tripled, thanks in part to higher rates. Hilton also raised its full-year forecast as its seeing a pick up in business and leisure travel. That sent the stock up almost two percent to $23.07.
Bloomin’ Brands said quarterly profits fell 15 percent. Traffic decreased at restaurant chains like Outback Steakhouse. Like so many companies this earnings season, it blamed on the harsh winter weather. Also a shift in holiday timing negatively affected the quarter. Shares fell 2.5 percent $20.89.
Vivus & Actavis
Vivus is facing a generic threat from drug maker Actavis. The company plans to market a generic version of Vivus’ obesity drug. In response Vivus said it will move to enforce intellectual property rights. Shares of Vivus tumbled almost three percent to $5.22. Actavis’ stock was also down slightly to $196.18.
RadioShack is scaling back its plan to close as many as 1,100 stores because it was unable to reach an agreement with its lenders. Its current loan agreement requires lenders to sign off on more than 200 store closings a year. Shares plunges nine percent to $1.33.
Netflix is raising its internet video prices by $1 a month for new customers and giving current subscribers a two-year break from the price hike. The company already announced it would up its rates last month, but we didn’t know by how much until today. Shares rose two percent to $328.55.