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Consumer Sector Update for 06/05/2018: WTW,HOFT,GII,FRAN


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Top Consumer Stocks

WMT -0.87%

MCD -0.49%

DIS -0.25%

CVS -1.14%

KO -0.75%

Consumer stocks were broadly mixed in late trade, with shares of consumer staples companies in the S&P 500 sinking over 0.4% this afternoon while shares of consumer discretionary firms in the S&P 500 were climbing almost 0.6%.

Among consumer stocks moving on news:

+ Weight Watchers International ( WTW ) served up a new record high on on Tuesday, reaching a best-ever $86.81 a share after analysts at Bank of America Merrill Lynch began coverage of the weight-loss and lifestyle company with a Buy rating. The move follows Weight Watchers May 10 pricing a $517.5 million secondary offering of 7.5 milion shares of its common stock by Artal Luxembourg SA, its largest individual shareholder, at $69 each or about a 3.3% discount to its previous closing price.

In other sector news:

+ Hooker Furniture ( HOFT ) rose to a 30-month high on Tuesday, climbing over 19% to its best share price since December 2015 after reporting Q1 net income that topped the lone-analyst call for the three months ended April 29. The company earned $0.61 per share during the February-to-April reporting period, up from $0.41 per share during the same quarter last year ago and beating the single-analyst estimate by $0.13 per share. Total revenue climbed to $142.9 million from $130.9 million last year but still lagged the $145.1 million analyst mean. Separately, Hooker Tuesday declared a $0.14 per share dividend, unchanged from its most recent distribution to investors and payable June 29 to shareholders of record on June 15.

+ G-III Apparel Group ( GIII ) rose to a 30-month high on Tuesday, climbing over 19% to its best share price since December 2015 at $51.19 apiece, after the apparrel retailer reported non-GGAP Q1 net iincome and revenue exceeding analyst estimates. Excluding one-time items, the company earned $0.22 per share during the three months ended April 30, reversing an $0.18 per share adjusted net loss during the year-ago period and easily exceeding the Capital IQ consensus expecting a $0.05 per share net loss. Revenue rose to $611.7 million from $529.0 million during the same quarter last year and also surpassing the $570.6 million Street view. The company also raised it FY19 outlook, adding $0.29 to both ends of its prior guidance for a new range of $2.27 to $2.37 per share and bumped its revenue forecast $30 million higher to around $2.97 billion in revenue. Analysts, on average, are expecting G-III to post adjusted FY19 net income of $2.06 per share on $2.96 billion in revenue.

+ Francesca's Holdings ( FRAN ) has turned solidly higher Tuesday afternoon, recovering from a more than 12% decline earlier in the session that followed the retail jewelry chain reporting Q1 net sales trailing Wall Street expectations. The company generated around $100.4 million in revenue during the three months ended May 5, down 7% from $107.7 million during the prior-year period and lagging the $101.5 million Capital IQ consensus. It also reported a net loss of $0.11 per share, matching the analyst consensus.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Business , Commodities
Referenced Symbols: WTW , HOFT , GIII , FRAN , GII



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