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Sector Update: Consumer Stocks on Upswing Today; Investors Dressing Up Urban Outfitters After Q2 Revenue Beat

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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, Urban Outfitters Inc. ( URBN ) rose Tuesday after the retailer late yesterday reported a smaller Q2 profit compared with year-ago levels but still managed to match analyst expectations.

Sales at the company's namesake Urban Outfitters stores open at least 12 months or more fell 10% from year-ago levels while same-store sales at its Free People locations jumped 21% year over year and advanced about 6% at its Anthropologie stores. Overall, same-store sales were little changed from the year-earlier period.

Net income for the three months ended July 31 slid to $67.5 million, or $0.49 per share, in-line with the Capital IQ consensus but falling about 12% under its $76.4 million profit last year. Revenue rose 7% year over year to $811.3 million, beating estimates by around $6.6 million.

URBN shares were ahead nearly 4% at $38.33 each in mid-day trade, earlier climbing to a session high of $38.70 a share. The stock has traded within a 52-week range of $32.23 to $44.15 a share, declining about 7.5% over the past 12 months through Monday's close.

In other sector news,

(+) ARO, (+20.2%) 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, (-10.7%) 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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