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Consumer Sector Update for 02/03/2017: KIRK,BEBE,DECK

Top Consumer Stocks

WMT -0.19%

MCD +0.86%

DIS -0.05%

CVS +1.48%

KO +0.82%

Consumer stocks were broadly mixed Friday, with shares of consumer staples companies in the S&P 500 extending their recent advance with another 0.9% gain while shares of consumer discretionary firms in the S&P 500 were declining 0.1%.

In company news, Kirkland's ( KIRK ) slumped to a four-year low on Friday after the specialty retailer today reduced its FY16 earnings forecast below Wall Street expectations after sales growth during the 13 weeks ended Jan. 28 trailed its prior guidance by a considerable margin.

The home decor seller is now expecting Q4 net income in a range of $0.56 to $0.61 per share, down from its previous outlook modeling a $0.70- to $0.75-per-share profit and trailing the analyst mean expecting $0.71 per share.

Q4 total sales rose 2.1% over year-ago levels to $203.2 million, lagging its Nov. 11 projection for 7% to 8% growth, while same-store sales fell 4.6% during the period, the company said. Analysts, on average, were looking for $209.1 million in Q4 sales. The company will report its full Q4 and FY16 financial results on March 10 just ahead of the market open.

KIRK shares were down 15% in mid-day trade at $11.55 each, paring a prior 25.7% drop to their lowest price since Dec. 2012 at $10.10 a share.

In other sector news,

(+) BEBE, (+21.9%) Narrows fiscal Q2 net loss compared with last year by $0.03 to $0.65 per share. Net sales fall 16.7% from year-ago levels to $101.9 mln. Same-store sales slide 10.5%. Plans to close up to 25 stores during 2017.

(-) DECK, (-17.3%) Q3 EPS of $4.11 trails Capital IQ consensus by $0.12. Net sales slip 4.5% to $760.3 mln, missing $789.73 mln Street view. Sees Q4 net loss as low as $0.10 per share with 5% to 6% sales slide. Analysts expecting $0.44 per share profit, 7.1% sales rise to $383.47 mln.

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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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