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A conversation about the latest market-moving events, including the coronavirus outbreak, as Wall Street wraps up a wild first quarter.
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 World stocks were set to close their worst quarter since 2008 on a brighter note, as Chinese factory data on Tuesday held out hope for an economic revival even as much of the rest of the world locked down to fight the coronavirus.
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 Dollar Tree Inc. said Tuesday that it is withdrawing its fiscal first-quarter and full-year outlook as the discount retailer heads into peak Easter shopping season beneath a cloud of uncertainty. Shares tumbled 3.6% in Tuesday premarket trading. Same-store sales trends soared through March 29, with the namesake chain up 7.1% and Family Dollar up 14.4%. However trends have "moderated," the company said, with same-store sales at Family Dollar up 8.8% for the seven days ending March 29 and Dollar Tree down 19.4% for the period. Food and household consumable sales remain strong, however the company's ability to restock items in high demand, weaker-than-expected sales in discretionary categories and the impact of the coronavirus on the Easter selling season raise questions. There were also higher first-quarter costs associated with pay and benefits, and other measures tied to the pandemic response. And there are concerns about gross margins due to the merchandise mix. As of March 30, Dollar Tree has $1.9 billion in cash and investments, including $750 million drawn down from its $1.25 billion revolving credit line. The company plans to pay $250 million due in April. All remodels and installations have been halted until April 27. The company doesn't expect to repurchase shares in the near-term. It is scheduled to report fiscal first-quarter earnings on May 28. Dollar Tree stock is down 15.1% for the year to date while the S&P 500 index has sunk 18.7% for the period.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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The Dow is down 21.8% this quarter, on track for its worst quarter since 1987 and its worst first quarter ever.
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Hilton Grand Vacations INc. said Tuesday it is suspending its U.S. sales operations due to the growing number of travel restrictions and stay-at-home policies being implemented across the country during the coronavirus pandemic. The Orlando, Fla.-based company said it has closed some resorts and is temporarily pausing reservations at its U.S., Europe and Barbados resorts through the end of April. Sales in Japan and South Korea remain open on a limited basis and customer service team members are available for customers who want to change or cancel travel. "While the level of disruption to the travel industry is unprecedented, we remain confident in our ability to manage through this difficult period," Chief Executive Mark Wang said in a statmeent. "Approximately 40% of 2019 segment EBITDA was derived from recurring fees in our Finance and Club & Resort segments. Through the end of March, we have collected approximately 90% of our member fees for fiscal 2020, which fund all of the operational costs of our resorts." The company has a leverage ratio of 1.59 times and had just over $1 billion in liquidity at end-February. In March, the company drew down the remainder of its revolving credit facility. Shares were not active premarket, but have fallen 53% in the year to date, while the S&P 500 has fallen 19%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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Buckle Inc. said Tuesday that it would keep its stores closed until further notice. As a result, the apparel retailer will furlough most of its store associates and corporate workers starting April 5. Furloughed staff will continue to receive benefits. Those who continue to work will do so with pay reductions. Buckle's Chief Executive Dennis Nelson will forego his salary until operations resume, and the company's board has chosen to forego their retainers for the current quarter. Buckle stock is down 20% for the past year while the S&P 500 index has fallen 7.3% for the period.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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