Consumer Sector Update for 07/10/2018: SFIX,DFBG,PEP,JWN

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Top Consumer Stocks

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KO +1.32%

Consumer stocks were ending broadly higher Tuesday afternoon, with shares of consumer staples companies in the S&P 500 continuing to outpace other sectors with a 1.1% gain while shares of consumer discretionary firms in the S&P 500 were climbing almost 0.2% in late trading.

In industry news:

Same-store sales at 20 of the largest chain stores continued to accelerate during the seven days ended July 7, rising 5.2% over year-ago levels and matching the fastest pace of growth since Dec. 23, according to the weekly Redbook survey. Month-over-month sales remained on negative ground during the week ended June 30, although the decline was cut in half from the prior week to just 0.2% during the July 1-7 reporting period. Year-over-year sales for the whole month matched their third fastest pace so far in 2018, rising another 0.2 percentage points to 4.3%

Among consumer stocks moving on news:

+ Stitch Fix ( SFIX ) raced to a new, all-time high on Tuesday, climbing almost 12% to a best-ever $34.70 a share after analysts at Keybanc started coverage of the specialty retailer with an Overweight investment recommendation and a $38 price target. The move follows Stitch Fix last month reporting a fiscal Q3 profit three time larger than Wall Street expectations at $0.09 per share, also reversing a $0.38 per share net loss during the prior-year period. Net sales during the three months ended April 28 grew 29.2% year-over-year to $316.7 million, exceeding the $306.7 million analyst mean.

In other sector news:

+ Differential Brands Group ( DFBG ) was more than 2% higher on Tuesday, easing from a 7% spike soon after the opening bell that followed it saying its Robert Graham subsidiary has signed a licensing agreement with Peerless Clothing International to manufacture and distribute Robert Graham men's and boys' tailored clothing, suit separates and top coats. Peerless will start distributing product throughout the United States and Mexico by the spring of 2019, with the new collection to be sold in high-end department stores and luxury specialty stores in addition to Robert Graham consumer direct channels.

+ PepsiCo ( PEP ) climbed just over 4% on Tuesday after reporting improved non-GAAP Q2 earnings and revenue and also exceeding Wall Street expectations. Excluding one-time items, the soft-drink beverage company earned $1.61 per share during the three months ended June 16, up from $1.50 during the same quarter last year and topping the Capital IQ consensus by $0.08 per share. Total revenue grew to $16.09 billion from $15.71 billion during the year-ago period, also beating the $16.05 billion analyst mean. PepisCo also reaffirmed its FY18 outlook expecting adjusted net income of $5.70 per share, also surpassing the $5.65 per share Street view. It also sees revenue rising about 2.3% over FY17 levels when it generated $63.53 billion in annual sales. That translates into about $65 billion, matching the analyst consensus for this year.

- Nordstrom ( JWN ) fell almost 6% on Tuesday after the department-store retailer projected between $15.2 billion to $15.4 billion in annual sales during its current fiscal year ending in early February 2019, lagging the Capital IQ consensus by at least $350 million. It also sees net income this year in a range of $3.35 to $3.55 per share, bridging the $3.46 per share analyst view. Looking forward, Nordstrom said it continues to expect its net annual sales to rise 3% to 4% between FY17 to FY22.

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: SFIX , PEP , JWN

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