Consumer Sector Update for 08/25/2017: WMT, MCD, DIS, CVS, KO, TSLA, ULTA, GME

Top Consumer Shares:

WMT: +0.3%

MCD: -0.01%

DIS: +0.6%

CVS: flat

KO: +0.7%

Consumer shares were mixed ahead of Friday’s open.

In sector news, Ulta Beauty ( ULTA ) fell 5% after it reported Q2 sales of $1.289.9 billion, up from $1.069 billion in the year ago quarter and just ahead of the analyst consensus of $1.286 billion on Capital IQ. Earnings were $1.83 per share, including $0.02 per share related to a new accounting standard, up from $1.43 per share a year ago and better than expectations of $1.78 per share. Comparable sales increased 11.7% compared to an increase of 14.4% in the second quarter of fiscal 2016.

For Q3, the company is targeting sales in the range of $1.331 to $1.353 billion, straddling the Street view of $1.333 billion. Earnings are seen at $1.63 to $1.68 per share, vs. expectations of $1.68 per share. For FY 2017, the company said it expects to achieve comparable sales growth of approximately 10% to 11%, and deliver earnings per share growth in the high twenties percentage range, compared to previous guidance of mid-twenties percentage range.

In other sector news,

(+) TSLA (+0.7%) Plans to bring fully self-driving car to market divides engineers; to launch big-rig electric trucks next month

(-) GME (-7.7%) Q2 earnings miss Street by a penny

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