Consumer Sector Update for 08/24/2017: TLYS,SIG,SJM

Top Consumer Stocks

WMT -2.20%

MCD -0.20%

DIS +0.05%

CVS -2.89%

KO -0.25%

Consumer stocks were ending mostly lower today, with shares of consumer staples companies in the S&P 500 dropping almost 1.3%, nearly tripling its mid-day loss, while shares of consumer discretionary firms in the S&P 500 were slipping more than 0.1%.

In company news, apparel retailer Tilly’s ( TLYS ) fell as much as 10% on Thursday, dropping to a session low of $8.65 a share, despite last night reporting improved Q2 earnings and sales compared with year-ago levels, exceeding Wall Street estimates.

The company earned $0.11 during the three months ended July 29, up from $0.05 during the same quarter last year and beating the Capital IQ consensus by $0.06 per share. Revenue climbed 17.6% over last year to $138.8 million, also slipping past the $136 million Street view.

Looking ahead, the company is expecting Q3 comparable-store sales to be flat to up by low single-digits on a percentage basis and net income in a range of $0.19 to $0.24 per share. Analysts, on average, are expecting the company to earn $0.17 per share during the August-to-October reporting period.

In other sector news,

(+) SIG, Q2 EPS of $1.33 on $1.4 bln in net sale tops Street view expecting a $1.09 per share profit on $1.33 bln in sales. Also agrees to buy online jeweler R2Net for $328 mln in cash.

(-) SJM, Non-GAAP Q1 EPS of $1.51 trails analyst mean expecting $1.63 per share. Net sales fall 4% to $1.75 bln, also lagging the $1.81 bln consensus. Lowers FY18 earnings outlook below Street view. JP Morgan downgrade to Neutral from Overweight.

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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