Consumer Stocks Extend Gains

Consumer stocks were trending higher Friday afternoon, with shares of consumer staples companies in the S&P 500 advancing about 0.6% while shares of consumer discretionary firms in the S&P 500 were posting a 0.7% gain. In company news, shares of the Sportsman’s Warehouse (SPWH) were sharply higher on Friday, climbing over 25% to reach a session high of $5.94 a share in recent trade after the outdoors equipment retailer late yesterday reported above-consensus Q1 net sales.

Excluding one-time items, the company recorded a net loss of $0.08 per share during the 13 weeks ended April 29 compared with $0.00 per share during the same quarter last year and also trailing the Capital IQ consensus expecting a $0.07 per share net loss. Revenue rose 3.5% over year-ago levels to $156.9 million, exceeding the $153.06 million consensus. Same-store sales declined 6.9% from the same period last year. The company also reiterated its in-line Q2 and FY18 guidance. It sees adjusted Q2 net income in a range of $0.12 to $0.14 per share, straddling the $0.13 per share Street view. Revenue is projected to come in between $189 million to $194 million, in line with the $192.22 million consensus.

The retailer also is expecting to earn between $0.60 to $0.68 per share during the 12 months ending next January on $825 million to $845 million in net sales. Analysts, on average, are expecting a $0.63 per share FY18 profit on $831.72 million in net sales.

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