Birkenstock, Five Below, Big Lots: 3 Stocks In Focus

Morning Brief co-hosts Brad Smith and Alexandra Canal break down three top trending tickers on the Yahoo Finance platform:

Birkenstock (BIRK) shares are declining after the footwear brand reported fiscal third quarter earnings that missed revenue and profit estimates. Despite the disappointing results, the company maintained its full-year guidance.

Five Below (FIVE) topped second-quarter expectations, surpassing sales estimates for the quarter. Five Below's revenue also beat projections, while adjusted earnings per share came in line with expectations.

According to a Bloomberg report, discount retailer Big Lots (BIG) is considering filing for bankruptcy. Big Lots stock is plunging around this report, which comes after years of declining sales for the company.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith

Video Transcript

We're taking a closer look at Yahoo finances, trending tickers, Birkenstock five below and big lots.

We're doing it in 30 seconds each.

Let's go for it.

Birkenstock shares.

They are, hey, get this one sliding this morning.

Uh The shares are down by about 13.5%.

The Sandal makers third quarter numbers falling short of analysts expectations leaving its full year outlook unchanged though here.

Uh the revenue did grow 15% in the Americas and overall rose 19% worldwide here.

However, just a little bit low, the fact set consensus here.

Um and then ultimately, they did stand by the fiscal guidance as we mentioned for 2024 still looking to grow revenue and 19% on the expected basis there.

Yeah, and this is a pretty tough market, right?

I feel like the shoe market is so heavily penetrated.

Do you have any burkes?

II, I have a couple, just the rubber ones and then I have the, the sandal.

And it's interesting because they said that revenue growth benefited from pre sales of closed toe silhouettes.

Yes, I can see that I can see that it's showing up in my feed is that showing up in your feed?

Is, is the Gen Z Tiktokers moving into that, to that realm?

Perhaps.

I don't know.

I don't know.

It's kind of, it's tough to know if they're Gen Z or, or, uh, young millennials.

Yeah.

So, so it's, it's one of those things that, that, uh, that stood out to me because when you think about innovation in the shoe space, that's something that, you know, these different companies are kind of leaning on their, their products that maybe didn't bring them to fame, but perhaps need them to back around, who knows.

But for as you said, is maintained, moving on to another 15 below shares there in the Green today, the discount retailer second quarter sales beating the streets expectations.

Now this is really a better than feared report here.

So booking the trend of what we see for the other discount retailers like dollar general today, earnings coming in line consensus estimates of the on revenue comparable seems to sale that the key metric for many of these retailers down five 0.7% in the quarter.

This was ahead of expectations of a 6.4% decline.

So again, feeding into that better than fear narrative there.

Yes, it's interesting, especially the assortment, they call it the wow assortment that they're trying to curate here.

And ultimately, for a lot of the consumers that were focusing in on, we've seen two trends really emerge over the course of this earnings season with regard to retail, one of them has been the off price retailers doing successfully doing well.

However, it's interesting, the space that five below plays in where we were talking about Dollar General and some of the headwinds that they're gonna be tracking in the near term on the low end consumer cohort and the challenges and the pressures that they're seeing five below has a lot of, a lot of overlap in that Venn diagram with a dollar general here.

So uh all that considered it be interesting to see what more the company has to say about their own outlook, especially if we do see even more outsized pressure on that end of the consumer spectrum.

Also, let's talk a little big lots tumbling this morning.

The off price retailer may be filing for bankruptcy after years of sales declines according to a Bloomberg report, take a look at shares down 32% here now as they are potentially considering bankruptcy here.

According to reports, it was really kind of evident through one of the filings that had to go forward and, and kind of disclose to investors, some of the retention bonuses that big to put out there to four executives, which ultimately amounted to about $5.2 million.

You typically see that taking place when a company is trying to retain some of those executives to navigate through what is a very uncertain period.

In this case, uh potential bankruptcy.

Yeah, a very uncertain period.

And again, I just go back to the competition aspect of it all.

And I feel like when you have something like a Walmart out there and available to consumers is one stop shop environment.

It's hard for some of these other discount retailers to compete here.