A humorous look at the companies that caught our eye, for better or worse, this week
BANK OF MONTREAL (STAR)
"… and an iPhone 7, and a drone, and a virtual reality headset and a scooter. And finally, Santa, I want 1,000 shares of Bank of Montreal because – in light of its stronger-than-expected fourth-quarter earnings, dividend increase and recent analyst upgrades – I think the shares have excellent potential for further capital gains. Thanks Santa! I'll put some extra cookies out for you this year. Don't let me down. Your friend, Liam."
BMO (TSX), $96.20 up $7.20 or 8.1% over week
HUDSON'S BAY (DOG)
Don't like waiting in line when you're buying Christmas presents? You might want to give your local department store a try. Hit by weak sales of women's apparel and luxury goods, Hudson's Bay – owner of retail chains including The Bay, Lord & Taylor and Saks Fifth Avenue – posted a net loss of $364-million in the third quarter ended Oct. 29 as same-store sales fell 4 per cent. The stock's been put on the clearance rack.
HBC (TSX), $13.83 down $1.06 or 7.1% over week
LULULEMON ATHLETICA (STAR)
Turns out rumours of Lululemon's death were greatly exaggerated. Despite fears that the "athleisure" trend was running its course, the yoga and fitness wear retailer beat third-quarter expectations with a 13-per-cent jump in sales and 28-per-cent lift in earnings – proving that there is still plenty of demand for $128 tights and $74 tank tops. With such outstanding value, how could anyone afford not to shop there?
LULU (Nasdaq), $69.30 (U.S.) up $13.99 or 25.3% over week
CHIPOTLE MEXICAN GRILL (DOG)
Business quiz! Shares of Chipotle Mexican Grill sank after:
a) Donald Trump threatened to shut down all U.S. companies with the word "Mexican" in their name;
b) Chipotle withdrew its new Chihuahua Chalupa after complaints from animal rights groups;
c) Co-CEO Steve Ells said he is "not satisfied with the rate of recovery" at Chipotle, whose same-store sales have tumbled for four-consecutive quarters after a series of illness outbreaks last year.
Answer: c.
CMG (NYSE), $370.00 (U.S.) down $30.03 or 7.5% over week
TAILORED BRANDS (STAR)
What's better than looking like a million bucks? Answer: Making a million bucks. Shareholders of Tailored Brands – parent of Men's Wearhouse, Jos. A. Bank and Moores Clothing for Men – made a collective $366-million, to be exact, after the suit retailer posted third-quarter results well ahead of estimates and raised its full-year forecast, sending the shares to their biggest one-day gain on record. Dressing well never felt this good.
TLRD (NYSE), $27.18 (U.S.) up $7.95 or 41.3% over week