Sector Update: Consumer Stocks Well Off Session Lows; Gordmans Tumbles After Q2 Misses, Sub-Par Prospects

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Consumer stocks were slightly weaker Thursday with shares of consumer staples companies in the S&P 500 losing around 0.1% as a group. Shares of consumer discretionary firms in the S&P 500 were down about 0.2%.

In company news, Gordmans Stores ( GMAN ) was falling after the department store retailer reported results for its fiscal Q2 ended Aug. 2 trailing analyst estimates, as well as forecasting a net loss during the current quarter compared with Wall Street expectations for a small quarterly profit.

Shares recently were down nearly 10% at $3.57 apiece, climbing off a $3.52 session low. The stock has traded within a 52-week range of $3.06 to $14.35 a share, sliding over 71% over the past 12 months.

The company posted a net loss of $3.2 million, or $0.16 per share, reversing a $900,000 profit during the same quarter last year and a penny wider than the Capital IQ consensus for per-share earnings. The quarterly results include around $1.34 million, or about $0.03 per share, in interest costs, GMAN said.

Net sales rose 3.1% over year-ago levels to $141.0 million, lagging the Street view by around $2.88 million. Sales at stores open 12 months or more fell 6.8% compared with last year's sales.

For the current quarter ending in November, the company is forecasting net sales in a range of $150 million to $153 million, trailing estimates by at least $5.79 million. It is projecting a Q3 net loss of $0.07 to $0.11 per share, including about $0.03 in expected interest expense. Analysts, whose estimates typically exclude extraordinary items, are looking for a $0.02 per share adjusted profit during the quarter.

In other sector news,

(+) SGOC, (+73.3%) Announces new on-line sales platform on ( JD ) to accelerate delivery of high-quality service and products.

(-) WSM, (-11.1%) Offers weak Q3, FY14 outlooks. Q3 EPS forecast and FY14 earnings guidance both lag consensus view by at least $0.03 per share. Projected revenue for both periods were in-line with estimates. Q2 revenue trailed Street by $10 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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