Last Week's Biggest Stock Movers: Hat's Off to Tilly's
Let's go over some of last week's best and worst performers.
Tilly's (TLYS) -- Up 22 percent last week
The New York Stock Exchange's best-performing company was Tilly's. The retailer of apparel and footwear for extreme sports enthusiasts moved higher after announcing better-than-expected results for the potent holiday shopping period.
Tilly's is now looking to earn between 21 cents and 23 cents a share for the quarter, fueled by a 1 percent to 3 percent increase in comparable-store sales. That's a welcome update, since it was initially expecting to earn no more than 19 cents a share on negative comps. Brean Capital upgraded the stock after the encouraging news.
Build-a-Bear Workshop (BBW) -- Up 20 percent last week
Tilly's wasn't the only retailer moving higher after an upbeat holiday quarter. Build-a-Bear Workshop soared after revealing that comparable-store sales surged 9.8 percent from a year earlier. Adjusted net income will also clock in at roughly double what it earned during the prior year's holiday quarter.
Build-a-Bear Workshop stores allow shoppers to pick out their teddy bears and other plush toys that are stuffed as they are ordered. It was a trendy concept a decade ago, but sales later slipped, and it seems to be gaining momentum again.
E2open (EOPN) -- Up 19 percent last week
The Wall Street Journal reported on Thursday that E2open was looking for a buyer, and by Friday the supply chain management software provider went public with a poison pill provision to make it easier to protect itself against a hostile takeover. That was enough to send the shares higher on buyout speculation.
It's easy to see why E2open may be seeking a buyer. The stock got slammed earlier this month after warning that it will post a wider-than-expected quarterly loss on revenue that was substantially below Wall Street targets. A turnaround would be easier as a private company or as part of a larger public company, where it doesn't have to live up to quarterly expectations.
ChannelAdvisor (ECOM) -- Down 57 percent last week
Wall Street doesn't like when you dramatically reduce your guidance. It happened to E2open a couple of weeks ago, and it happened to ChannelAdvisor this week. The provider of e-commerce optimization solutions shed more than half of its value after announcing that revenue will clock in at $23.7 million for its recently concluded quarter. ChannelAdvisor's previous guidance called for $25.6 million to $26.1 million on the top line. Now let's see if it turns up as buyout fodder in the coming weeks.
KB Home (KBH) -- Down 24 percent last week
One of the country's largest homebuilders was blown down after a problematic quarterly report. KB Home's sales remain strong. Revenue soared 29 percent from the prior year's fiscal fourth quarter. The near-term outlook is also solid on that front, with the value of the backlog of homes it has yet to deliver up 34 percent over the year. Unfortunately for KB Home, gross profit margins are contracting, and it fell well short of Wall Street estimates.
Low interest rates and rising home prices apparently haven't been enough for KB Home and some of its peers to widen their margins.
GoPro (GPRO) -- Down 22 percent last week
One of last year's hottest IPOs has been cracking like a broken selfie stick in 2015. GoPro stumbled last week after Apple (AAPL) took out a patent for a wearable camera system. GoPro's HERO cameras have been popular with outdoor sporting enthusiasts for years, but the wearable high-def cameras have crossed over into the mainstream lately.
Apple's presence wouldn't necessarily mean the end of GoPro's gravy days, and a patent doesn't necessarily mean that a product is coming soon. However, GoPro's stock trades at a lofty valuation in a market that has historically been a tough place to sustain healthy markups. We'll see how this saga plays out, ideally in high definition.
Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Apple and GoPro. The Motley Fool owns shares of Apple. Try any of our Foolish newsletter services free for 30 days. Check out our free report on one great stock to buy for 2015 and beyond.