Markets

Consumer Sector Update for 09/01/2015: DLTR,CAP,BONT

Top Consumer Stocks

WMT -1.67%

MCD -1.42%

DIS -1.88%

CVS -2.16%

KO -1.45%

Losses for consumer stocks were picking up speed, with shares of consumer staples companies in the S&P 500 declining about 1.6% while shares of consumer discretionary firms in the S&P 500 were falling nearly 2.1%.

In company news, investors were discounting Dollar Tree ( DLTR ) shares Tuesday after the retailer today missed analyst estimates with its Q2 financial results, also trailing the Street view with its Q3 and FY15 revenue forecasts.

Net loss during the three months ended August 1 was $98 million, or $0.46 per share, reversing a $121 million profit during the same quarter last year. Excluding acquisition-related costs, it earned $0.67 per share, a penny under the Capital IQ consensus.

Revenue rose 48.3% over year-ago levels to $3.01 billion, also lagging the $3.31 billion consensus. Sales at stores open more than one year grew 2.7%.

Looking forward, Dollar Tree is projecting same-store sales growth in the low single percentage digits during the current quarter and all of FY15 ending next January. It also is projecting Q3 sales in a range of $4.78 billion to $4.87 billion, narrowly trailing Street estimates expecting $4.89 billion in sales.

The company also sees FY15 sales of between $15.30 billion to $15.52 billion, well under analyst expectations looking for $16.46 billion in total sales.

DLTR shares were down over 7% at $70.79 apiece, earlier sinking to a session low of $69.69 a share. Prior to today's decline, the stock had risen slightly more than 40% over the past 12 months.

In other sector news,

(+) CAB, (+1.6%) Authorizes new $500 million stock buyback program after completing the repurchase of 2 million shares approved in April.

(-) BONT, (-7.4%) Imperial Capital halves price target to $2 a share, retaining an Underperform rating for the stock.

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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