The broader U.S. stock market is moving higher as retailers continue to report third-quarter results.
The S&P 500 is up 11 points to 2,092, the Dow Jones Industrial average is higher by 122 points to 17,855 and the Nasdaq is gaining 22 points to 5,096. The S&P 500 Retailing Industry Group Index was up 0.9 percent to 1,278.
Abercrombie & Fitch stock is jumping over 20 percent to $23.42 after the teen retailer beat earnings and revenue estimates. Revenue dropped 3.6 percent to $878.6 million, but it was better than the analyst estimate of $862.8 million. Abercrombie reported earnings per share of 48 cents, while the estimate was for 22 cents a share. Comparable sales decreased 1 percent year-over-year, but increased sequentially. Looking ahead, the company said comparable sales will be flat in the fourth quarter.
Foot Locker is also rising over 8 percent to $67.02 on beating earnings and sales estimates for the quarter. The athletic footwear chain delivered earnings per share of $1, higher than the anticipated 95 cents. Sales for the quarter were $1.794 billion, easily beating the estimate of $1.782 billion. Foot Locker carries a heavy assortment of Nike sneakers and since Nike has a huge following, Foot Locker benefits. The company’s results included a $100 million pre-tax litigation charge relating to its pension plan that is being appealed.
Hibbett Sports is up over 18 percent to $33.67 after reporting third-quarter results of 74 cents a share, which beat the Capital IQ Consensus of 68 cents a share. Revenues rose 4.6 percent to $228.3 million, but this was short of the estimate of $233 million. Comparable-store sales are expected to be close to flat for the year, which is lower than the previous guidance of flat-to-low single-digit increase.
The Gap stock is gaining by 5 cents this morning to $26.44 after the chain reported earnings following Thursday’s market close missing analyst expectations and cutting its outlook. The Gap reported earnings per share of 63 cents, lighter than the anticipated 66 cents a share. Sales were $3.857 billion, also short of the FactSet estimate of $3.935 billion. Once again, Old Navy was the standout category with a 4 percent increase in sales. Gap cut its guidance for the full year estimates from a range of $2.75 to $2.80 to a range of $2.38 to $2.42.
Off-price retail continues to shine as Ross Stores is also moving higher this morning by 9 percent to $50.75 after the company beat analyst expectations. Following the close on Thursday, Ross Stores reported earnings per share of 53 cents, topping the FactSet estimate 50 cents a share and delivering sales of $2.968 billion, beating the consensus of $2.937 billion. The company said it expected the upcoming holiday season to be highly promotional and that retailers had gotten very competitive on prices. Wage increases are also impacting the company’s expenses.
Duluth Holdings priced its initial public offering on Thursday at $12 a share, lower than the planned range of $14 to $16 a share. The casual brand of men’s and women’s apparel known for Fire Hose work pants and Buck Naked underwear has been growing rapidly. But it’s been a tough week for IPOs, with Square also pricing below its planned range. On a positive note, Square stock immediately rose in the market once it began trading. Duluth should begin trading at Nasdaq this morning.
Asian markets ended the week on a higher note amid reports that the Japanese central government is considering means to boost wages. European markets were mixed with Germany and the U.K. up slightly, while France is flat.