Diamonds and Dogs

8/22/12

Express Inc. (EXPR)

Express Inc.'s investors were expressing anger today, as shares dropped 11.10% to $15.03. The clothing retail company saw its shares lose more than 10% after the company released disappointing quarterly earnings and full year outlook. Express' second-quarter revenue was a clear miss, with the company announcing $454.9 million versus the consensus of $467 million. After the poor quarter, Express Inc.'s management also lower the full year forecast. Management now sees full-year EPS of $1.69-$1.79, versus its prior view of $1.79-$1.89; and expects flat to low-single-digit same-store sales. CEO Michael Weiss said, "As we begin the second half of the year, we believe it is prudent to set our guidance more conservatively and in line with the trend we experienced in the second quarter." Express set a new 52-week low today.

Williams-Sonoma Inc. (WSM)

Williams-Sonoma cooked up a good earnings report today, up 11.64% at $42.68. The home goods store saw its shares pop today after earnings topped Wall Street estimates. Consumer spending has been sluggish, however Williams-Sonoma was able to produce solid revenue this quarter. For the second quarter, the company posted revenue of $874.3 million versus the consensus of $864.2 million. Unlike Express, the great quarter led the company to increase its full year outlook. Williams-Sonoma's Management now sees full-year adjusted EPS of $2.44-$2.51 on revenue of $3.98 billion-$4.03 billion in revenue, versus the consensus of $2.50 and $4 billion, respectively. CEO Laura Alber said, "Our momentum entering the third quarter remains strong, and we are well-prepared to execute our second-half strategies." Williams-Sonoma is currently trading at its highest levels since April 2011 and will test its resistance level of $43-$44.

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