Solid Advance for Consumer Staple Stocks

Consumer stocks were broadly mixed this afternoon, with shares of consumer staples companies in the S&P 500 jumping out to a 1.1% gain while shares of consumer discretionary firms in the S&P 500 were declining about 0.1%.

In company news, Restoration Hardware Holdings (RH) declined Friday after the specialty retailer late Thursday issued financial projections for the current quarter trailing analyst estimates, upstaging above-consensus Q3 profit and sales.

For the three months ending in late January, the company is expecting non-GAAP Q4 net income in a range of $0.60 to $0.70 per share, well under Wall Street expectations for $1.07 per share. It also is projecting net sales of between $562 million to $592 million, missing the analyst mean by at least $47.2 million.

The disappointing guidance was taking attention away from Restoration Hardware’s performance during the just-concluded fiscal period. Excluding one-time items, it earned $0.20 per share during the three months ended Oct. 31, beating the Capital IQ Consensus by $0.04 per share. Net sales rose 3.2% over year-ago levels to $549.3 million, also exceeding the Street view by slightly more than $21.9 million

By Stephen Holmes