WEBVTT - Smith & Wesson Down; Kroger Sales Beat; GMS Jumps   

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, The Stock Movers podcast,

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<v Speaker 1>your roundup of companies making moves in the stock market,

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<v Speaker 1>harnessing the power of Bloomberg data. Let's take a look

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<v Speaker 1>at some of the stocks on the move today.

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<v Speaker 2>I'm Paul Studios, Michael Reagan, and we're joined by bloomberg'st

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<v Speaker 2>Least my tay it all right, So I want to

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<v Speaker 2>start with shares of gunmaker Smith and Wesson. That's ticker SWBI.

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<v Speaker 2>Their shares have been down as much as nineteen percent.

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<v Speaker 2>It's saying thirteen percent after the close yesterday. It's really

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<v Speaker 2>looking at another challenging year. Right, Customers have been cutting

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<v Speaker 2>back there spending on firearms. It posted lower quarterly profit

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<v Speaker 2>in sales some of the specifics. So it posted profit

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<v Speaker 2>of eight point six million compared with twenty seven point

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<v Speaker 2>three million a year earlier. So that's a big difference.

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<v Speaker 2>And it also pointed in factors like inflation, interest rates.

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<v Speaker 2>It said tariffs on steel could drive up their costs.

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<v Speaker 2>And it's CFO really put into perspectives that the company

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<v Speaker 2>expects demand for firearms and fiscal twenty twenty six to

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<v Speaker 2>be similar to what they saw in fiscal twenty twenty five.

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<v Speaker 2>Management didn't provide any guidance because of uncertainty with tariffs.

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<v Speaker 2>But what it's doing differently to deal with the slower demand,

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<v Speaker 2>and that is it's limiting its inventory. So its CEO said,

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<v Speaker 2>several market smaller on firearm manufacturers, they're also struggling to

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<v Speaker 2>stay afloat because of the slowing demand, and they're also

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<v Speaker 2>starting to exit the market too.

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<v Speaker 1>I thought this was a bigger company market cap of

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<v Speaker 1>only three hundred and eighty seven million dollars.

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<v Speaker 2>Okay, I got it. Maryville, Tennessee is where they're based,

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<v Speaker 2>fifteen hundred employees.

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<v Speaker 1>What else you got?

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<v Speaker 2>All right, so we got Kroger that's the nation's largest

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<v Speaker 2>supermarket operator. Yes, ticker k r IT shares rose more

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<v Speaker 2>than eight percent. That's actually the highest intra day since

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<v Speaker 2>March of twenty twenty four. Reported a beat on sales,

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<v Speaker 2>steady grocery spending, comparable sales when you take fuel kind

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<v Speaker 2>of out of the picture. It rose three point two percent.

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<v Speaker 2>That was better than what Wall Street expected. They also

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<v Speaker 2>raised full of your sales guidance. They said it saw

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<v Speaker 2>one hundred million dollar impairment charge that was due to

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<v Speaker 2>its plans to close about sixty stores over the next

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<v Speaker 2>eighteen months, so they do plan to close some stores

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<v Speaker 2>when it comes to tariffs. They said, you know what,

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<v Speaker 2>it's not going to bother us too much because a

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<v Speaker 2>big part of our products are sourced domestically. But it

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<v Speaker 2>still faces a few challenges, Paul, I know, this is

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<v Speaker 2>one that you've talked about. Shoppers kind of buying the

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<v Speaker 2>cheaper products, you know, like going in the stars.

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<v Speaker 1>Yeah, going to.

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<v Speaker 2>The cheaper products, or they're getting more items on sale too,

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<v Speaker 2>and it really needs to spark growth because it had

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<v Speaker 2>that failed deal with Albertson, so that it's also dealing

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<v Speaker 2>with that too on top of it.

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<v Speaker 1>But they're not They're not around here, are they. They're

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<v Speaker 1>not in the Jersey area, Rover, We're not too much.

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<v Speaker 2>But if you look at shares, like for other ones

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<v Speaker 2>that are in the area, like a Walmart and a Costco,

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<v Speaker 2>their shares are higher too because of this news.

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<v Speaker 1>Interesting all right.

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<v Speaker 2>And then finally is Building Products Distributor GMS. It's ticker, Yes, GMS.

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<v Speaker 2>It's shares are up as much as twenty five cents,

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<v Speaker 2>so really sparking the reason why it's this Wall Street

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<v Speaker 2>Journal report that Home Depot made an offer for the company,

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<v Speaker 2>no word on the price, and that would possibly set

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<v Speaker 2>off this bidding war with QXO because they offered to

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<v Speaker 2>buy a GMS for about five billion dollars earlier this week,

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<v Speaker 2>and GMS said its board is reviewing that offer from QXO.

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<v Speaker 2>But the big appeal with GMS, like what's so appealing

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<v Speaker 2>about it is that home Depot in QXO, they're they're

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<v Speaker 2>looking to expand right their share for market construction supplies

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<v Speaker 2>and tools, and they're hoping that that bigger entity like

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<v Speaker 2>GMS is going to help pull in business for more

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<v Speaker 2>contractors and that's what they're needing. So QXO they're up

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<v Speaker 2>about five percent. Home Depot has been up as much

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<v Speaker 2>as half a percent.

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<v Speaker 1>The Stock Movers podcast from Bloomberg Radio. Check back with

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