Sector Update: Consumer Shares Positioned Lower Pre-Market

Top Consumer Shares:

WMT: -0.91%

MCD: flat

DIS: -0.21%

CVS: -0.16%

KO: -0.15%

GE: flat

Consumer shares were generally lower in pre-market trade Wednesday.

In consumer stocks news, Staples ( SPLS ) shares were up 2.2% pre-market after it reported a drop in earnings for Q2 ended August 2, resulting from a 1.8% year-over-year drop in sales. Earnings were impacted by charges related to the closure of 80 stores during the quarter. The office products supplier plans to close approximately 40 stores in North America during the second half of 2014.

On a non-GAAP basis, net earnings were $75 million, or $0.12 per diluted share, down from non-GAAP net earnings of $103 million, or $0.16 per diluted share, in the prior-year period. The Capital IQ consensus was also for non-GAAP diluted EPS of $0.12. GAAP net income totaled $82 million, or $0.13 per diluted share, compared to last year's $103 million, or $0.16 per diluted share.

And, J.M. Smucker ( SJM ) shares were down more than 3% after it reported Q1 earnings of $1.34 per share, up 11% from $1.21 per share recorded in the year ago quarter but three cents shy of the analyst consensus on Capital IQ.

Sales were $1.32 billion, down 2% from $1.35 billion recorded in the year ago period and just below expectations of $1.37 billion.

The company's Q1 adjusted income increased 11% in 2015, compared to 2014, and benefited from the company's share repurchase activities over the past year which reduced weighted average shares outstanding by 4%. Q1 net sales decreased 2% in 2015, compared to 2014.

And, Lowe's Companies ( LOW ) was down 2.8% after it reported Q2 results that beat the Street view on EPS and total revenues but reduced its outlook for full year sales growth and comparable store sales.

The home improvement retailer reported Q2 EPS of $1.04, up from $0.88 in Q2 2013 and beating analyst estimates of $1.03 for the quarter. Total revenues of $16.59 billion were up from $15.71 billion in Q2 2013 and surpassed analyst projections of $16.57 billion. Comparable sales for the quarter increased 4.4%.

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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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