Consumer stocks are higher, with shares of consumer staple
companies in the S&P 500 climbing about 0.5% while shares of
consumer discretionary stocks in the S&P are ahead 0.5%.
In company news, Restoration Hardware Holdings Inc. (
) is down 8.5% at $69.57 a share, holding just above its session
low despite the specialty retailer's late Tuesday reporting
adjusted Q2 earnings and revenue that beat analyst forecasts and
issuing upside guidance for the current quarter and FY14.
RH said it earned $0.49 per share in Q2, excluding one-time
items, up from a $0.33 gain last year and topping analyst forecasts
by $0.06 per share, according to Capital IQ. Net revenue increased
30% year over year to $382.1 million, also beating analyst
Perhaps the one fly in the ointment as far as investors were
concerned was RH's reporting a GAAP net loss of $0.46 per share in
The company raised its FY14 outlook, now forecasting adjusted
EPS in a range of $1.65 to $1.70, breezing past Wall Street
expectations for a $1.48 per share adjusted profit during the 12
months ending in January. Revenue is seen coming between $1.56
billion to $1.58 billion, topping the analyst consensus by at least
RH also issued upside guidance for Q3, projecting adjusted
earnings of $0.81 to $0.84 per share on between $490 million to
$500 million in revenue. The Street is looking for a $0.16 per
share gain on just $364.71 million in sales.
In other sector news,
(+) WEN, (+0.8%) Shares climb to 66-month high after Standard
& Poor's Ratings Services says it won't change its credit
ratings for the restaurant operator following its plans to increase
the size of its credit facility
(-) CWTR (-22.6%) The apparel company reports a Q2 net loss of
$0.72 per share, wider than Capital IQ estimates looking for a
$0.63 per share loss.
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