Markets

Consumer Sector Update for 06/08/2018: HOME,LULU,LVS,ZUMZ

Top Consumer Stocks

WMT -0.72%

MCD -0.32%

DIS +1.45%

CVS +1.52%

KO +1.16%

Consumer stocks were broadly higher at today's close, with shares of consumer staples companies in the S&P 500 racing to nearly 1.3% higher this afternoon while shares of consumer discretionary firms in the S&P 500 climbed less than 0.2%.

Among consumer stocks moving on news:

+ At Home Group Inc. ( HOME ) reached a record high on Friday, climbing to a best-ever $39.31 a share, after the retailer reported Q1 net income exceeding Wall Street expectations and issuing above-consensus earnings outlook. Excluding one-time items, the company earned $0.31 per share during the three months ended April 29, improving on a $0.19 per share adjusted profit during the same quarter last year and beating the Capital IQ consensus by $0.04 per share. Net sales increased 20.9% year over year to $256.2 million, largely matching the $256.47 million Street view. The company is projecting non-GAAP FY19 net income between $1.25 to $1.30 per share, topping the analyst mean by at least $0.02 per share. It also sees total sales this year in a range of $1.154 billion to $1.161 billion, rising as much as 22% over prior-year levels, and straddling the $1.16 billion consensus call.

In other sector news:

+ Las Vegas Sands ( LVS ) climbed over 1% on Friday after the casino company authorized a nearly $1 billion increase in its stock buyback program after boosting its U.S. term loan facility by another $1.35 billion. In addition to raising the amount available for share repurchases to $2.5 billion from $1.56 billion previously, the Las Vegas Sands board Thursday also voted to extend the expiration date for the buyback program.

+ lululemon athletica ( LULU ) has crossed back to positive ground this afternoon, erasing a nearly 2% decline, that followed the yoga-wear company announcing a deal to repurchase 3.3 million shares of its common stock in a private transaction with private-equity investors Advent International. The stock buyback was authorized under the company's recently increased $600 million share repurchase program using cash and loan proceeds on hand. Advent said it recently sold an additional 6.7 million shares, paring its lululemon stake to 10.1 million shares from 20.1 million previously.

- Zumiez ( ZUMZ ) turned lower on Friday, reversing a nearly 17% advance to its best price since April 2015 at $31.15 a share, that followed the apparel retailer late Thursday reporting better-than-expected Q1 financial results. The company recorded a net loss of $0.10 per share during the three months ended May 5, improving on an $0.18 per share loss during the year-ago period and beating the Capital IQ consensus by $0.02 per share. Total net sales rose 14% year-over-year to $206.3 million, also topping the $199.3 million Street's view. Same-store sales jumped 8.3% over the same quarter last year. For the current quarter ending Aug. 4, Zumiez is projecting Q2 net income in a range of $0.04 to $0.05 per share on between $213 million to $217 million in sales. Analysts, on average, are expecting a Q2 net loss of $0.01 per share on $202.1 million in sales.

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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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