Top Gainers in the Consumer Sector: August 21–25, 2017
Signet and Dollar Tree
Before the market opened on August 24, Signet Jewelers (SIG) reported its fiscal 2Q18 results. The company’s adjusted EPS (earnings per share) rose 25.5% to $1.33 in fiscal 2Q18—24.0% higher than the estimates. Its revenue rose 1.7% YoY in 2Q18 to $1.4 billion—higher than consensus estimates of $1.3 billion.
Along with its strong results, Signet also announced its decision to acquire R2Net for $328 million. The deal is an all-cash transaction. It’s expected to close in 3Q18—subject to approvals. R2Net, the owner of JamesAllen.com, is an online jewelry retailer. With R2Net’s technology, the acquisition is expected to enhance Signet’s innovation and digital capabilities. The stock rose 17.0% last week.
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On August 24, Dollar Tree (DLTR) announced its fiscal 2Q17 results before the market opened. Its revenue has risen 5.7% YoY to $5.28 billion in fiscal 2Q17—0.8% higher than consensus estimates. Its EPS has risen 36.1% YoY to $0.98—13.8% higher than estimates. With its strong fiscal 2Q17 results, Dollar Tree stock rose 8.3% last week.
On August 22, Macy’s (M) named Hal Lawton as its new president—effective September 8, 2017. Newton was the senior vice president of eBay (EBAY) North America. He will be responsible for merchandising, operations, marketing, stores, technology, and consumer insights and analytics. The company also announced the restructuring of its merchandising, planning, and private brands to a single merchandising function. The restructuring will be led by Jeff Kantor—Macy’s chief stores and human resources officer. The restructuring plan aims to save ~$30 million annually and ~$5 million in 4Q17. However, the restructuring will also result in a headcount reduction of ~100 positions. After the announcement, the stock rose 8.3% last week.