Williams-Sonoma Enjoys Hot "Weddings Season" Earnings, Sears Sees the Light, and Housing Data Reboun
Take your time to review some recent innovations in burger patties before you try to impress friends at the grill this Memorial Day weekend. Plus, you can look smart by explaining why the Dow Jones Industrial Average gained 10 points Thursday.
1. Williams-Sonoma earnings look as good as their appliances
It must be wedding season, because the quarterly earnings from Williams-Sonoma looked pretty to Wall Street. The craft home appliances designer reported a 9.7% rise in revenue from last year to $974.3 million for the first three months of 2014, with profits of $46.2 million that beat analysts' expectations like they were egg whites.
The takeaway is that while the winter had been harsh for most big-box retailers (we're looking at you, Wal-Mart, Staples, and Target), the painful weather didn't really hurt luxury retailers. Bag designer Kate Spade enjoyed its best first-quarter sales growth in a few years, while Tiffany saw a 13% sales jump. The enthusiasm around fancy goods sent Williams-Sonoma stock up 8.16% Thursday.
2. Sears Holdings stock sees light at the end of the tunnel
Can this old department-store owner catch a break already? Sears Holdings announced first-quarter earnings ... sorry, losses ... of $402 million, even worse than last year's $279 million loss. The company highlighted one big positive, though -- Sears stores open at least a year actually grew sales by 0.2% from the year before. Investors were so surprised by the minuscule growth they celebrated with a 4% rise for the stock Thursday.
The focus of the past few years has been closing unprofitable stores, selling their snazzy Lands' End brand, selling the decent shopping strip real estate it has, and creating the rewards program. None of these quick fixes will stop the bleeding, which explains why the stock has fallen from over $100 in 2010 to $38.10 on Thursday.
3. Existing-home sales get first win of 2014
The number of the day is 1.3%. That's the increase in home sales in April, to a seasonably adjusted rate of 4.65 million houses changing hands. Although that's slightly below Wall Street's expectations and nearly 7% lower than last April (back when Justin Bieber didn't have a criminal record), investors were pumped for the stat's first rise of this year.
The takeaway is that spring is big for boring baseball "highlights" on ESPN and U.S. home sales -- that's because Mom and Dad like to have moved into a new town and school district before the end of the summer. After all the momentum gained by the housing market in 2013, investors like to see the housing market regroup after the slow, cold-affected winter.
As originally published on MarketSnacks.com
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The article Williams-Sonoma Enjoys Hot "Weddings Season" Earnings, Sears Sees the Light, and Housing Data Rebounds originally appeared on Fool.com.Jack Kramer and Nick Martell have no position in any stocks mentioned. The Motley Fool recommends Costco Wholesale and Williams-Sonoma and owns shares of Costco Wholesale and Staples. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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