Friday, March 15, 2019 1:00 am
Discount retailer's stock drops
GOODLETTSVILLE, Tenn. – Dollar General Corp. posted mixed fourth-quarter results, with profit pressured by an income tax expense while revenue grew during the critical holiday period. The discount retailer also provided a fiscal 2019 profit outlook below Wall Street's view.
Shares fell 6.8 percent before the market opened on Thursday.
The discount retailer earned $483.2 million, or $1.84 per share, for the fiscal period ended Feb. 1. A year earlier the Goodlettsville company earned $712.2 million, or $2.63 per share. The current quarter included an income tax expense of $130.2 million.
The performance was four cents short of what analysts surveyed by Zacks Investment Research were calling for.
Ohio UPS workers sue, claim racism
UPS workers at a distribution hub in Maumee, Ohio, sued the company, alleging discriminatory hiring decisions and racist acts.
White employees in 2016 directed racist language at black workers, displayed a stuffed monkey wearing a UPS uniform and put up a noose and Confederate flags, according to a lawsuit filed Wednesday by 19 workers against UPS and five managers.
The lawsuit alleges management at the UPS distribution hub just southwest of Toledo “enabled, tolerated, and purposefully promoted and encouraged” a culture of racism.
UPS said in a statement Thursday that the company responded quickly and fired two employees after the 2016 complaints and since that time has taken remedial steps in cooperation with the Ohio Civil Rights Commission, including additional training and monitoring.
Facebook mum on cause of outages
Facebook went down for almost a full day Wednesday across parts of North America and Europe, but it's still not saying exactly what happened.
All the social network said Thursday was that the outages resulted from a “server configuration change.”
Facebook and its apps – Instagram, Facebook Messenger and WhatsApp – started experiencing problems midday Wednesday on the U.S. East Coast. Facebook was still having sporadic issues Thursday morning. Facebook did not say how many users were affected or why the outage took so long to fix.
Tailored Brands put in 'penalty box'
Tailored Brands Inc. plunged as much as 26 percent Thursday to $8.61, the lowest intraday in more than 10 years, after the parent of Men's Wearhouse and Jos. A Bank issued a horrendous forecast Wednesday evening, prompting Jefferies analyst Randal Konik to ask, “How could we be so wrong?”
The stock will “remain in the penalty box” until management can show some stabilization in the business, so Konik reduced his price target to $19 per share from $24. That said, he maintained his rating at buy, calling the shares “cheap,” and believes Tailored Brands is moving toward sustainable improvement.
Sales of new homes slump in January
Sales of new U.S. homes slumped 6.9 percent in January, a possible sign that buyers paused during the government shutdown.
The Commerce Department said Thursday that new homes sold at a seasonally adjusted annual rate of 607,000 in January, down from 652,000 in December.