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Consumer Sector Update for 05/12/2016: WTW,PRTY,KSS

Top Consumer Stocks

WMT +0.77%

MCD +0.57%

DIS -0.62%

CVS +0.52%

KO +0.55%

Consumer stocks were split between winners and losers today, with shares of consumer staples companies in the S&P 500 climbing about 0.4% while shares of consumer discretionary firms in the S&P 500 were slipping 0.1%.

In company news, Weight Watchers International ( WTW ) rose after a federal judge in New York late Wednesday tossed out a shareholder lawsuit claiming the weight-loss company intentionally misled investors about declines in its business several years ago.

U.S. District Judge Lewis Kaplan said the plaintiffs failed to prove the company hid enrollment declines from investors in 2012 and early 2013. The suit also unsuccessfully claimed Weight Watchers did not disclose how it was losing market share to rivals after they developed free apps that tracked dieter's food intake, exercise and weight-loss goals.

Today's advance for Weight Watchers shares likely is also finding support from a new regulatory filing indicating board member Denis Kelly Monday purchased an additional 10,000 shares of the company's stock at an average prices of $12.21 apiece, boosting his overall stake to 35;914 shares.

Separately, the company last night also said shareholders formally elected Oprah Winfrey to the company's board. Winfrey sent Weight Watchers shares soaring last October when the television personality acquired a 10% stake in the firm through a $43 million investment.

WTW shares were up over 5% this afternoon at $13.07 each, earlier climbing to a session high of $13.43 a share.

In other sector news,

(+) PRTY, (+0.5%) Adjusted Q1 EPS of $0.04 beat Capital IQ consensus by $0.01 per share. Revenue slips 1% from last year to $457.7 mln, missing the $462.2 mln Street view.

(-) KSS, (-11.0%) Q1 EPS of $0.31 misses by $0.06 per share. Net sales drop 3.7% to $3.97 bln, also lagging the $4.13 bln consensus. Same-store sales fall 3.9%. Street was expecting slightly positive improvement.

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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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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