Consumer stocks were slightly lower Wednesday, with shares of
consumer staples companies in the S&P 500 falling about 0.1%.
Shares of consumer discretionary firms in the S&P 500 were down
In company news, shares of The Men's Wearhouse (
) declined Wednesday, slipping more than 2% after late Tuesday
reporting a wider net loss than analysts were expecting, along with
below-consensus sales during the three months ended Feb. 1.
The sub-par quarterly results followed MW's announcement earlier
Tuesday it was buying rival Jos. A. Banks (
) in a transaction worth an estimated $1.8 billion. The company
recorded a Q4 net loss of $0.38 per share, ex items, trailing Wall
Street expectations for the period by $0.26 per share.
Revenue slid 7.9% from the same quarter last year to $560.6
million, missing the analyst consensus by around $50.51 million.
"We were not immune to the effects of weak consumer spending and
severe weather disruption that impacted most retailers in December
and January," according to CEO Doug Ewer in prepared remarks last
The company estimates that roughly one-quarter of its 2.5% drop
in same-store sales were the result of harsh winter weather during
the quarter, adding business began to improve in February,
including a 3% rise in same-store sales at its Men's Warehouse
stores and a 9% gain at its Moore's locations last month.
MW shares were down 2.3% at $55.84 apiece in mid-day trade,
climbing well off its intra-day low of $55.30 a share earlier
Wednesday. The stock has a 52-week range of $28.95 to $58.80 a
share. JOSB was little changed at $64.21 a share in recent trade,
down a penny.
In other sector news,
(+) DMND, (+9.9%) Q2 earnings of $0.09 per share, ex items,
beats by $0.01. Revenue falls 0.1% year over year to $220.6 mln,
topping the Street view by around $3.93 mln.
(-) CZR, (-5.2%) Q4 net loss widens from year-ago levels to
$12.83 per share, trailing analyst forecasts for a $1.59 per share
loss. Revenue rises 3.5% to $2.08 bln, also lagging Street views by
around $30 mln.
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