What to Know From Last Week: Restoration Hardware's Awesome Quarter, Lululemon's Brutal One, Oil Shocks, and the World Bank's Econ Outlook

The four things you need to know on June 16.

Jun 14, 2014 at 7:00PM
Trying to figure out which country's World Cup team bandwagon you're going to jump on isn't easy. So take a few minutes and check out what sent the Dow Jones Industrial Average (DJINDICES:^DJI) down from record highs over the last week.

1. Stock market winners ...
Just in time for you to clean out your closets and replace the furniture in your living room for some spring cleaning, Restoration Hardware (NYSE:RH) has been on quite a roll as well. Restoration Hardware stock popped in after-hours trading Wednesday following an earnings report worth putting on a mantel in your bedroom, as the company announced that revenue for the last quarter came in at $366.3 million.

So what's in the cards for the maker of all the kinds of home furnishings your mom is now into? Expansion. Restoration Hardware has 69 stores on this side of the Atlantic and wants to open another 30 that it expects will lead to $5 billion in annual sales. That kind of strategy got investors excited -- and so did word that profits were up 200% from last year.

CEO Gary Friedman had plenty of other fine goods to share with Wall Street as well. The financial analysts over at Restoration Hardware are quite an optimistic bunch -- as part of the earnings report, the company announced that it expects full-year 2014 revenue to reach $1.8 billion, with the help of $443 million to $453 million in revenue in the second quarter.
2. ... And stock market losers
While America seems to have been loading up on Restoration Hardware goods this past spring, they weren't buying Lululemon clothes for their workouts. Shares of lululemon athletica (NASDAQ:LULU) plummeted nearly 16% Thursday after a tied-up earnings report. On one hand, revenue beat Wall Street's expectations, rising 11% from last year to $385 million. But same-store sales fell 4% and the company also cut its full-year revenue projections, down to $1.8 billion from $1.82 billion.

Keep in mind that the past year has been as bad for Lululemon's brand image as not-stretching is for your muscles post-run. First, there was the sheer-pants fiasco, which cost Lulu over $60 million as it recalled see-through yoga gear. And later in the year, founder Chip Wilson was basically pushed out after he made some obnoxious comments about women's bodies wearing Lulu goods.

Now there's a new CEO in town, Laurent Potdevin, and with that move came some bold plans out of the Vancouver-based company. Lulu's CFO is exiting, but the company announced last week that it plans to buy back $450 million worth of Lulu stock. Plus, the company is adding 20 stores in Europe and Asia within the next three years, along with 14 pop-up stores in North America.

3. Iraqi violence rocked airline stocks and oil prices
A little bit of sectarian violence can go a long way. Insurgents have been tearing through northern Iraq over the past week -- and since Iraq is the second biggest oil producer in OPEC, the international cartel of nations that control oil production, investors worried whether a civil war could affect oil supplies. Limited oil would jack up the price, which was good news for oil and gas drilling companies, but bad for airline stocks such as Delta Air Lines (NYSE:DAL) and Southwest Airlines (NYSE:LUV).

4. Official international econ outlook wasn't good
Thanks for nothing, World Bank. The international institution is best known for providing loans to developing countries, but last week it lowered its forecasts for global economic growth from 3.2% to 2.8% in 2014. The pessimistic economists over at the World Bank had two reasons: First, the world's biggest economy -- that would be ours here in the U.S. -- surprisingly shrank 1% in the first quarter because of pesky winter weather. And second, the Ukraine-Russia crisis hasn't sat well with investors worldwide.

These stocks beat the big banks ...
Here's your chance to pocket big dividends. Over time, dividends can make you significantly richer. And guess what? The big banks are laggards when it comes to paying dividends. So instead of waiting for a cash windfall that may never come, check out these stocks that are paying big dividends to their investors right now. Click here for the exclusive free report.

Jack Kramer and Nick Martell have no position in any stocks mentioned. The Motley Fool recommends lululemon athletica. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at www.fool.com/podcasts.

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to www.fool.com/podcasts, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers