Consumer stocks fell slightly on Wednesday evening, with the SPDR Consumer Staples Select Sector ETF (XLP) slipping 0.3%, reversing a midday lead, while the SPDR Consumer Discretionary Select Sector ETF (XLY) fell 0.4 %.
In corporate news, Express (EXPR) plunged 21% after the clothing retailer on Wednesday reported lower second-quarter profit than the same quarter last year, while net sales rose. 1.6%, but still lagging the estimate of a single analyst polled by Capital IQ. It also reversed its FY22 earnings forecast, now projecting a net loss in the range of $0.16 to $0.22 per share instead of its earlier guidance for FY22 earnings of 0. $.24 to $0.36 per share.
Bed Bath & Beyond (BBBY) fell more than 20% after the company unveiled several cost-cutting measures and other strategic changes, including the elimination of approximately 20% of its workforce and the closure of 150 low-production stores. The company also said it likely generated about $1.45 billion in sales during its fiscal second quarter ended Aug. 27, trailing analysts’ estimate of $1.50 billion.
Chewy (CHWY) fell 7.8% after the pet supplies company reported second-quarter sales below analysts’ expectations and also lowered its FY22 sales outlook below consensus of Wall Street. The company now forecasts sales this year in the range of $9.9 billion to $10.0 billion, down from its previous call which forecast $10.2 billion to $10.4 billion and misses the Capital IQ consensus looking for $10.26 billion in FY22 sales.
Brown-Forman (BF.A, BF.B) slid 1.2%, returning a small mid-morning gain after the maker of Jack Daniel’s whiskey and other spirits and wines reported net profit of 0 $.52 per share for its fiscal first quarter ended July 31, improving earnings of $0.40 per share from a year ago and beating Capital IQ’s consensus of $0.05 per share. Net sales rose 11.5% to $1.01 billion, also beating analysts’ estimate of $976.2 million.