Top Consumer Stocks
Consumer stocks were broadly mixed today, with shares of consumer staples companies in the S&P 500 ( XLP ) climbing almost 0.6% this afternoon while shares of consumer discretionary firms in the S&P 500 ( XLY ) were slipping about 0.3%.
Among consumer stocks moving on news:
+ Stanley Black & Decker ( SWK ) was up more than 3% late in Friday trading after reporting Q2 financial results topping Wall Street estimates and also overcoming a reduction in its forecast for GAAP FY18 earnings forecast to reflect a recent settlement with U.S. Environmental Protection Agency. Excluding one-time items, the power-tool company earned $2.57 per share and posted GAAP earnings of $1.93 per share during the three months ended June 30, beating the Street view by $0.55 and $0.09 per share, respectively. Net sales rose 11% year-over-year to $3.64 billion, also exceeding the $3.48 billion analyst mean. The company cut its outlook for FY18 GAAP earnings by $0.40 per share under its previous guidance to a new range of $7.00 to $7.20 per share following the EPA settlement and now trailing the Street view expecting a $7.65 per share GAAP profit. The forecast for normalized FY18 earnings was unchanged at $8.30 to $8.50 per share, straddling the $8.38 per share consensus call.
In other sector news:
+ V.F. Corp ( VFC ) was more than 4% higher this afternoon after the footwear and apparel company reported better-than-expected fiscal Q1 financial results and raised its FY18 outlook. Excluding one-time items, the company earned $0.43 per share during the quarter ended ended June 30, beating the Capital IQ consensus by $0.10 per share. Net sales rose to $2.79 billion from $2.68 billion last year and also topping the $2.27 billion analyst mean. It also raised its FY18 profit forecast by $0.04 per share to a new range of $3.52 to $3.57 per share and increased its sale guidance by $150 million over its prior projections to $13.6 billion to $13.7 billion. Analysts, on average, are looking for V.F. Corp to earn $3.55 per share, ex items, on $13.56 billion in sales.
- Skechers USA ( SKX ) was pummeled during Friday trading, dropping over 28% to a 14-month low of $23.80 a share, after reporting Q2 financial results trailing analyst estimates and also forecasting below-consensus Q3 earnings and sales. Net income fell almost 24% to $0.29 per share during the quarter ended June 30, missing the Street view by $0.23 per share. Net sales rose 11% year-over-year to $1.13 billion, matching the Capital IQ consensus. For the current quarter, the footwear company is projecting net income between $0.50 to $0.55 per share, lagging the analyst mean by at least $0.13 per share. It also sees Q3 sales in a range of $1.2 billion to $1.225 billion compared with the $1.26 billion consensus call. Wells Fargo Friday cut its investment recommendation for Skechers to Market Perform for Outperform while Susquehanna lowered its rating to Neutral from Positive. Monness Crespi & Hardt also reduced its price target for the company's stock by $13 to $32 a share while keeping its Buy rating. The outlier Friday was Standpoint Research, which raised Skechers to Buy from Hold.
- FTD Companies (FTD) wilted Friday, dropping as much as 21%, after the floral and gifts company pre-announced Q2 revenue below Wall Street estimates and also named an interim CEO and eliminated the chief operating officer position as it begins a strategic review and company-wide cost savings plan. It sees revenue for the three month ended June 30 in a range of $299 million to $301 million, down from $328.1 million in the year-ago period and missing the $320.1 million Capital IQ consensus. FTD also hired Moelis & Co to assist with the strategic review, which will consider a potential sale or merger and various funding alternatives in addition to the company continuing its "value-enhancing" program as a standalone company. Executive vice president and counsel Scott Leven was named interim CEO, replacing John Walden, while chief operating officer Simha Kumar was terminated, effective immediately.