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After declining in May, stock markets got off to a strong start in June. Both the S&P 500 (SNPINDEX: ^GSPC) and the Dow Jones Industrial Average (DJINDICES: ^DJI) gained over 4% last week so that both indexes are back in double-digit return territory for 2019.
Over the coming days, several companies will be posting quarterly reports that might make for volatile trading in their stocks. Below, we'll take a look at the metrics that could send shares of Dave & Buster's (NASDAQ: PLAY), Thor Industries (NYSE: THO) and lululemon athletica (NASDAQ: LULU) moving in the week ahead.
Lululemon's outlook
Investors have high expectations for athletic-apparel specialist lululemon athletica's first-quarter earnings-results report, due out on Wednesday afternoon. The company achieved a banner fiscal 2019, after all, as sales growth trounced management's guidance, capped by a 27% spike in the latest quarter.
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CEO Calvin McDonald and his team cited "broad-based strength across the business" in explaining that performance. That strength included a booming online sales channel, healthy traffic in stores, and rising prices, as customers respond positively to its latest product launches. Lululemon even found early success pushing into new niches like outerwear.
The company will need to keep winning on all these fronts to reach management's ambitious goals to at least double sales over the medium term. The best evidence that things are going roughly according to that plan will be for the company to affirm or raise its outlook, which calls for sales to rise to over $3.7 billion this fiscal year as gross profit margin continues improving.
Dave & Buster's store growth
Wall Street can't resist a good rebound story, especially if it involves a company like Dave & Buster's that has a shot at doubling its store footprint over time.
The restaurant and entertainment specialist last quarter reported its first positive sales result in over a year as it struggled against fierce competition. But the chain seems to have found a working turnaround strategy that relies on more innovative, value-based food options and differentiated entertainment experiences led by exclusive VR gaming titles.
On Wednesday, investors will find out whether these initiatives can keep the company on track to achieve its first year of positive comps since 2017. Meanwhile, look for overall sales to rise at a robust pace as Dave & Buster's completes its second-straight year of record-high openings, with 16 new locations slated to launch in fiscal 2019.