Markets

Sector Update: Consumer

Consumer stocks were mostly higher with shares of consumer staples companies in the S&P 500 climbing about 0.3%. Shares of consumer discretionary firms in the S&P 500 were ahead more than 0.8%.

In company news, shares of beauty products seller Elizabeth Arden ( RDEN ) slid to a four-year low Tuesday after the company last night swung to a fiscal Q4 adjusted net loss, exceeding analyst forecasts, while revenue also lagged Wall Street expectations.

Guidance by the company expecting "modest improvement" in adjusted EPS during the coming year lent little support to the stock, with shares down over 23% at $15.02 each late in Tuesday trading, earlier dropping to their lowest level since June 2010 at $14.65 a share.

Net loss during the three months ended June 30, RDEN reported a $155.9 million net loss, or $5.24 per share, expanding on a $5 million loss during the same quarter last year. Excluding one-time items, the company's adjusted net loss widened to $1.04 per share from $0.10 per share last year and missing the Capital IQ consensus by $0.66 per share.

Net sales fell 28% year over year to $191.7 million, trailing analyst estimates by around $49.9 million.

Also last night, the company said Rhone Capital agreed to buy $50 million of its 5.0% redeemable preferred stock. Rhone also received warrants to buy up to 2.5 million shares of common stock at 20.39 each and will be able to name a new director to the RDEN board.

In other sector news,

(+) ARO, Former CEO Julian Geiger rejoins the teen apparel retailer, replacing Thomas Johnson. Pares projected Q2 net loss by as much as $0.16 from its prior outlook to a new range of $0.42 to $0.45 per share. Street is expecting a $0.58 per share loss.

(-) JMEI, Q2 non-GAAP net income of $17.8 mln, or $0.16 per share, up from $10.6 mln last year and beating Capital IQ consensus by $0.04 per share. Revenue rises 41.9% year over year to $154.4 mln, topping Street view by around $4.79 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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