L Brands (NYSE:LB) +0.8% AH after posting slightly better than expected Q2 earnings and revenues, as the company continues to be a relative bright spot in a retail industry facing a steep and persistent drop in store traffic
Q2 sales excluding newly opened or closed locations rose 3% Y/Y; by brand, same-store sales rose 3% at Victoria's Secret and gained the same amount at Bath & Body Works.
Raises its FY 2014 outlook, now seeing EPS of $3.03-$3.18 vs. its prior forecast of $3.00-$3.15, and forecasts Q3 EPS of $0.26-$0.31 vs. analyst consensus estimate of $0.30.
CST Brands (NYSE:CST) agrees to the purchase of Nice N Easy Grocery Shoppes, a convenience store operator in central New York. Nice N Easy operates 77 corporate and franchise stores in that region. Terms were undisclosed.
The breach looks to have occurred in 51, or about 1% of franchised UPS Store locations throughout the U.S. The current assessment says certain customers' information who used a credit or debit card at these locations between Jan. 20 and Aug. 11 may have been exposed.
The malware was eliminated on Aug. 11, says UPS, and customers can again shop securely at all locations. "Our customers can be assured that we have identified and fully contained the incident," says UPS Store President Tim Davis.
Alongside its just-declared $0.31 quarterly dividend, Bob Evans Farms (BOBE +1.7%) boosts its buyback program by $50M to $150M. The expiration date is extended until the end of fiscal 2016. The move comes after a proxy fight in which Sandell Asset Management failed to gain a majority, but did win five seats on the 12-person board.
Due to mix and pricing strategy changes, LightInTheBox's (NYSE:LITB) gross margin fell to 39.5% in Q2 from 41.3% in Q1 and 46% a year ago. That was a major reason EPS was only in-line in spite of a $5M revenue beat.
Rising opex also took a toll: Fulfillment spend grew to 6.1% of revenue from 5.2% a year ago due to smaller average order size; sales/marketing spend rose to 27.7% from 27.1%; and G&A spend rose to 12.9% from 12.2%.
Apparel revenue +43.5% to $35.4M, while electronics and general merchandise revenue +14.3% to $54.4M. Total orders +52.4% to 2.2M; active customers +44.2% to 1.7M. Mobile accounted for 28.2% of orders, up from 16.8% a year ago.
LightInTheBox expects Q3 revenue of $92M-$94M, above an $85M consensus.