Diamonds and Dogs
The shoes have it. DSW (DSW) is soaring 20% to new highs following better than expected earnings and raised guidance. DSW beat estimates by 16 cents as revenues rose 16.4% year over year to $793.7 million way ahead of estimates. Nearly double-digit growth in comparable-store sales pushed revenue well above estimates. For the full year, DSW raised earnings and sales guidance.
Best Buy (BBY) taking a stumble down 5% following earnings. Earnings actually beat estimates as revenues rose 4.6% year over year to $9.38 billion ahead of estimates, but then lowered third quarter guidance. Chief Executive Hubert Joly in a conference call cited a maturing online consumer electronics business for declining web sales growth and said rising transportation costs may pressure current quarter earnings. Investors seem to fear that Best Buy could be vulnerable to further digital disruption or maybe a peak in tax cut stimulus.
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