Dave & Buster’s Entertainment, Inc. (PLAY) announced its first quarter earnings on Tuesday, June 10. Despite reporting lower-than-expected revenue, the arcade company’s stock rose over 2% immediately following the release.

Revenue reached $567.7 million for the first quarter. This was a 3.5% decrease from revenue of $588.1 million reported in the same quarter last year and below analysts’ expectations of $576.4 million.

“I am pleased to report that we are making good progress and our operating results significantly improved over the course of the first quarter,” said Dave & Buster’s Interim CEO, Kevin Sheehan. “We are improving our execution every day and have a very clear road map of work to do to continue to drive improvements and meaningful growth in the business. Our team continues to be energized by the opportunities we see ahead to meaningfully improve the operating performance of the business and shareholder value.”

Dave & Buster’s reported quarterly net income of $21.7 million or $0.62 per adjusted share. Last year at this time, the company reported net income of $41.4 million or $0.99 per adjusted share.

Dave & Buster’s comparable store sales decreased 8.3% compared to the same time last year. The company’s Entertainment segment reported revenue of $366.6 million for the quarter while its Food and Beverage segment reported revenue of $201.1 million. Operating income came in at $63.2 million or 11.1% of revenue, this is a decrease from $85.5 million or 14.5% of revenue compared to the first quarter of the prior year. The company opened two new Dave & Buster’s stores during the quarter and two additional stores after the first quarter for a total of 236 stores in North America.

Dave & Buster’s Entertainment, Inc. (PLAY) shares closed at $30.17, up 24% for the week.

Stitch Fix Releases Results

Stitch Fix, Inc. (SFIX) released its third quarter earnings on Tuesday, June 10. The clothing company reported a drop in active clients, causing its shares to decline by 9% following the release of the report.

Net revenue for the quarter came in at $325.0 million, an increase of approximately 1% from $322.7 million in net revenue at this time last year. This exceeded analysts’ expectations of $315.13 million in net sales.

“Stitch Fix delivered strong third quarter results, marked by our overall return to year-over-year revenue growth,” said Stitch Fix CEO, Matt Baer. “Our performance, which exceeded expectations, is the direct result of the strength of the Stitch Fix value proposition and the team's disciplined execution of our strategy. Now in the growth phase of our transformation, we are focused on cementing our role as the retailer of choice for apparel and accessories by consistently delivering the most client-centric and personalized shopping experience.”

The company posted net losses of $7.4 million for the quarter or $0.06 per share. This was an improvement from net losses of $21.3 million or $0.18 per share during the same quarter last year.

Stitch Fix reported a decrease of 1% in active clients compared to the prior year, totaling 2.4 million. Net revenue per active client increased 3% year-over-year to $542 per client. The company generated free cash flow of $16.0 million and ended the second quarter with $242.1 million in cash, investments and no debt. For the fourth quarter of fiscal 2024, Stitch Fix expects net revenue to be between $298 million and $303 million.

Stitch Fix, Inc. (SFIX) shares ended the week at $30.17, down 16% for the week.

Chewy Posts Earnings

Chewy, Inc. (CHWY) reported its first quarter earnings on Wednesday, June 11. The online pet supply company’s stock fell 12% following the release despite reporting sales that met expectations.

The company reported net sales of $3.12 billion for the quarter. This was up 8.3% from $2.88 billion in the same quarter last year and in line with analysts’ expectations.

“Fiscal year 2025 is off to a strong start as the momentum at Chewy continues,” said Chewy CEO, Sumit Singh. “We delivered topline growth exceeding the high-end of our net sales guidance range, year-over-year growth in active customers, and compelling profitability and free cash flow generation. These results are a testament to the resiliency of the pet category and underscore the strength of Chewy’s value proposition and our ability to continue to gain market share.”

The company reported net income of $62.4 million this quarter or $0.15 per adjusted share. This was a decrease from net income of $66.9 million or $0.15 per adjusted share during the same time last year.

Chewy reported 20.8 million active customers in the quarter, an increase of almost 4% compared to this time last year. The company’s net sales per active customer increased to $583, a nearly 4% increase in the quarter. Chewy’s Autoship subscription program, which allows customers to automatically reorder and receive products, increased sales by almost 15% to $2.56 billion for the first quarter. For the second quarter of fiscal 2025, Chewy expects 7% to 8% growth in net sales ranging between $3.06 billion and $3.09 billion.

Chewy, Inc. (CHWY) shares ended the week at $41.67, down 12% for the week.

The Dow started the week of 6/9 at 42,786 and closed at 42,198 on 6/13. The S&P 500 started the week at 6,005 and closed at 5,977. The NASDAQ started the week at 19,573 and closed at 19,407.

U.S. Treasury yields trended lower this week as investors waited for the latest consumer price index data. Yields continued to decline later in the week as the jobless claims report suggested a slowdown in hiring.

On Wednesday, the U.S. Bureau of Labor Statistics announced that the consumer price index (CPI), which measures the cost of dozens of everyday consumer goods, increased 0.1% in May, below economists’ forecast of 0.2%. The CPI rose to 2.4% year-over-year, marking a slight increase from the prior month but in line with economists’ projections.

“Today’s below forecast inflation print is reassuring – but only to an extent,” said chief global strategist at Principal Asset Management, Seema Shah. “Tariff-driven price increases may not feed through to the CPI data for a few more months yet, so it is far too premature to assume that the price shock will not materialize.”

The benchmark 10-year Treasury note yield opened the week of June 9 at 4.51% and traded as low as 4.41% on Wednesday. The 30-year Treasury bond opened the week at 4.97% and traded as low as 4.89% on Wednesday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment were 248,000 for the week ending June 7, this was unchanged from the prior week and exceeded analysts’ expectations of 246,000 claims. Continuing unemployment claims increased by 54,000 to 1.96 million, the highest level since last October.

“Continuing jobless claims keep rising to fresh highs,” stated head of economics at Renaissance Macro Research, Neil Dutta. “This means unemployment is going up. Initial claims have perked up but remain tame by comparison. Taken at face value, it implies that rates of hiring have declined even if rates of firing have not materially increased.”

The 10-year Treasury note yield finished the week of 6/9 at 4.41%, while the 30-year Treasury note yield finished the week at 4.90%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, June 12. According to the survey, the mortgage rates for 30-year and 15-year loans remained relatively unchanged from the prior week.

This week, the 30-year fixed mortgage rate averaged 6.84%, a decrease from last week’s average of 6.85%. Last year at this time, the 30-year fixed mortgage rate averaged 6.95%.

The 15-year fixed mortgage rate averaged 5.97% this week, down from last week’s average of 5.99%. During the same week last year, the 15-year fixed mortgage rate averaged 6.17%.

"Mortgage rates have moved within a narrow range for the past few months and this week is no different,” said chief economist at Freddie Mac, Sam Khater. “Rate stability, improving inventory and slower house price growth are an encouraging combination as we celebrate National Homeownership Month.”

Based on published national averages, the savings rate was 0.42% as of 5/19. The one-year CD averaged 1.75%.

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