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Consumer Sector Update for 09/07/2017: DEST,RH,BKS


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WMT +0.14%

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KO +0.62%

Consumer stocks have turned broadly mixed this afternoon, with shares of consumer staples companies in the S&P 500 climbing back into the black with a nearly 0.2% advance while shares of consumer discretionary firms in the S&P 500 plunged almost 0.9% lower.

In company news, Destination Maternity Corp ( DEST ) dropped to a record low on Thursday, with shares of the maternity apparel retailer falling almost 12% to a worst-ever $1.07 apiece after the company said its chief executive officer was stepping down today following quarterly results that saw its Q2 net loss continue to widen on a GAAP basis as sales also declined compared with year-ago levels.

In prepared remarks, Anthony Romano said in the wake of the company's recently failed merger bid with Orchestra-Premaman, he and other board members decided this "would be a good time to make a change to allow for a fresh look at Destination Maternity."

Romano will be replaced on an interim basis by Allen Weinstein, the company said, adding it has already begun the search process to identify and hire a permanent CEO.

Romano's departure follows Destination Maternity today also reporting a GAAP net loss of $0.20 per share during the three months ended July 29, expanding on an $0.18 per share loss during the same quarter last year. Excluding one-time items, the adjusted net loss was $0.13 per share, or a penny better than last year's $0.14 per share non-GAAP net loss, as revenue declined 7.7% year-over-year to $98.3 million after it closed several underperforming stores and its relationship with Kohl's ( KSS ) ended over the past year.

No analyst estimates were available for comparison.

In other sector news,

(+) RH, Non-GAAP Q2 EPS of $0.65 beats consensus call by $0.21 per share. Adjusted sales rise 21% to $619 mln, also topping the $606.4 mln analyst mean. Lifts FY17 earnings outlook above Street, sales remain in-line. Upgrade at Buckingham Research to Buy from Neutal.

(-) BKS, Fiscal Q1 net loss of $0.15 was $0.03 per share wider than consensus call. Sales fall 6.6% to $853.3 mln, also missing the $871.8 mln analyst mean. Same-store sales decline 4.9% from last year.

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: DEST , KSS , RH , BKS


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