Consumer Sector Update for 06/12/2018: RH,THS,LE,JBLU

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Top Consumer Stocks

WMT -0.75%

MCD +0.18%

DIS +0.31%

CVS -0.88%

KO +0.48%

Consumer stocks were endinng narrowly higher today, with shares of consumer staples companies in the S&P 500 rising just 0.1% this afternoon while shares of consumer discretionary firms in the S&P 500 were posting a more than 0.3% advance.

Among consumer stocks moving on news:

+ RH's ( RH ) rose to a new, all-time high on Tuesday, riding a more than 38% advance to a best-ever $164.43 a share after reporting non-GAAP Q1 net income easily surpassing Wall Street estimates and raising its FY18 outlook for the second time so far this year. Excluding one-time items, the specialty retailer earned $1.33 per share during the three months ended May 5, up from just $0.05 per share during the same quarter last year and beating the Capital IQ consensus by $0.31 per share. Revenue rose to $557.41 million from $562.08 million last year although that came up shy of the $563.24 million analyst mean. Looking forward, the company is now expecting non-GAAP FY18 net income in a range of $6.34 to $6.83 per share on between $2.53 billion to $2.57 billion in revenue. That's up from its prior guidance expecting adjusted EPS this year of $5.45 to $6.20 per share on $2.53 billion to $2.57 billion and topping analyst estimates by at least $0.48 per share and straddling the $2.55 billion Street view. Following the better-than-expected financial results and outlook, analysts at Stifel Nicolaus raised their price target for RH shares by $25 to $125 a share and reiterating their Hold rating for the stock.

In other sector news:

+ Lands' End ( LE ) jumped out to a new, three-year high on Tuesday, rising over 27% to its best share price since April 2015 at $29.90 each, after the retailer reported a smaller-than-expected Q1 net loss and above-consensus sales. Net loss for the three months ended May 4 was $0.08 per share, improving on a $0.24 per share loss during the same quarter last year and topping the single-analyst estimate expecting a net loss of $0.19 per share. Net sales rose to $299.4 million from $268.4 million during the same quarter last year, also exceeding the $285 million two-analyst mean.

+ Treehouse Foods ( THS ) was almost 4% higher Tuesday afternoon, steadily building on its earlier gains that followed the baked goods and beverages company late Monday saying it successfully revised its senior unsecured credit facility, providing it with more financial flexibility as it moves forward with its 2020 restructuring program. Under the terms of the amended agreement, the credit facility will temporarily become secured for up to six quarters through the end of 2019, with the company's maximum allowable leverage ratio rising to 5.25 times its collateral and gradually receding to 4.0x when the amendment expires.

- JetBlue Airways ( JBLU ) was grounded Tuesday, with shares of the passenger carrier sliding as much as 2% lower after forecasting a drop in revenue per available seat mile of between 0.5% to 2.5% compared with year-ago levels during its current Q2 ending June 30. The expected decline includes a 2.5-percentage-point headwind from holiday placement as well as a 1.25-point headwind from completion factor and co-brand incentive payments previously disclosed during the quarter. JetBlue also said its load factor last month rose 1.1 points over May 2017 to 85.8%. The preliminary completion factor last month was 98.8% and its on-time performance was 71%.

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: RH , LE , THS , JBLU

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