Diamonds and Dogs

1/15/19

Having fun at Dave & Busters (PLAY). The Entertainment and dining stock is up 2% today and up 20% in the last week after raising full year guidance. Dave & Busters hit the trifecta, raising fourth quarter comparable store sales numbers while with full year sales and net income guidance. Food and Beverage revenues (42.1% of total revenues in the fiscal third quarter) increased 10.3% year over year to $118.8 million while Amusement and Other revenues (57.9%) rose 14.8% to $163.3 million.

Sherwin-Williams (SHW) missed the mark.  The paint company is down 4% today not far from a 52 week low after lowering guidance for the full year. The CEO said their performance in the fourth quarter was disappointing across the board relative to their outlook back in October. Consolidated revenue growth for the fourth quarter fell well short of previous expectation, due in large part to weak sales growth by North American stores in October and November. Store sales rebounded somewhat in December, but not enough to bring in the quarter.