A humorous look at the companies that caught our eye, for better or worse, this week
For a while there, investing in BRP was about as much fun as losing control of your ATV and hurtling down a rocky mountainside. But after the stock’s nasty tumble last year on news that major shareholders Bain Capital and the Beaudier Group were unloading millions of shares, BRP is finally regaining some traction: The company – which makes Can-Am off-road and on-road vehicles, Sea-Doos and Ski-Doos – posted better-than-expected quarterly results driven by strong sales of side-by-side ATVs, easing concerns about a U.S. economic slowdown. The shares are motoring back up the hill.
American Outdoor Brands (DOG)
You can add huge investing losses to the damage that gun manufacturers are causing. With some retailers moving away from gun sales after a series of high-profile mass shootings in the United States, shares of Outdoor Brands have lost more than three-quarters of their value in the past three years. The company, which makes Smith & Wesson firearms, took another hit this week after it missed quarterly estimates and cut its full-year earnings forecast, citing the impact of tariffs on its supply chain in China. Investors are selling first and asking questions later.
Ulta Beauty (DOG)
No amount of foundation, eye shadow or lipstick could cover up the ugly second-quarter report from cosmetics retailer Ulta Beauty. Citing “industry-wide sales headwinds," the company reported lower-than-expected earnings and took an exfoliator to its full-year guidance, reducing its profit and same-store sales guidance dramatically. Shocked by the sudden slowdown in Ulta’s sales, analysts slashed their ratings and price targets on the shares, which suffered their biggest one-day percentage drop on record. It will undoubtedly take investors a long time to make up these losses.
Build-A-Bear Workshop (DOG)
Don’t feed the bears! Don’t invest in them, either. Shares of Build-A-Bear Workshop – which operates 450 stores worldwide where customers can make their own stuffed animals – took a large bite out of investors’ portfolios after the company said second-quarter revenue fell 4.8 per cent, in part because year-earlier results were boosted by a “pay your age” promotion. With the company also announcing a US$1.2-million loss and its stock touching an all-time low, investors are understandably bearish.
J.M. Smucker (DOG)
Words that rhyme with Smucker: sucker, pucker, trucker and, uh, one more we can’t print in a family newspaper but which Smucker investors were using liberally this week. Hammered by continuing low prices for Jif Peanut Butter and Folgers Coffee and by intense competition in the pet-food business that hurt its Nutrish brand in particular, Smucker posted earnings that missed expectations and cut its full-year guidance, sending the stock to a big loss. With a name like Smucker’s, it doesn’t have to be good after all.