The stock markets opened higher across the board even as market giant Disney tumbled almost 9 percent on disappointing revenues.
The U.S. trade deficit increased in June with imports rising and exports held back by the stronger dollar. The trade gap widened by 7 percent to $43.8 billion in June, up from $40.9 billion in May. Consumer spending pushed up imports by 1.2 percent. The ADP jobs report missed expectations, but market watchers tend to rely more on the nonfarm payroll report that will come out on Friday.
It’s a busy day of fashion companies reporting earnings, and the strong dollar seems to be affecting all firms.
Ralph Lauren stock is moving higher after reporting its fiscal first-quarter earnings because the company managed to beat analysts’ expectations. Ralph Lauren delivered earnings of $64 million or $0.73 a share, much lower than last year’s $162 million or $1.80 a share. However, excluding charges, it was $1.09, higher than the expected $0.99. Sales came in at $1.62 million, also higher than the estimated $1.61 billion. Ralph Lauren is in the process of transitioning to a new global organizational structure. The stock climbed 3 percent to $127.40 in early trading.
Kate Spade is also up by 7 percent this morning to trade at $22.20 following its second-quarter earnings announcement. Spade delivered profits of $8.5 million or $0.07 a share, much better than last year’s loss of $4.4 million or $0.03 a share. Adjusted earnings were $0.08, still missing the estimates of $0.11. Revenue came in at $281.1 million, also short of the expected $294 million. On a positive note, Kate Spade did raise the low-end of the full-year guidance, with revised guidance now at a range of $190 million to $200 million.
Etsy shares plunged 20 percent to trade at $15.20 after the company disappointed investors after the market close on Tuesday. The Brooklyn-based online marketplace lost $6.35 million or $0.07 a share, due to higher expenses.
Luxury retailer Neiman Marcus filed to go public — again. The company had filed to go public in 2013, but was sold to Ares Management and Canada Pension Plan Investment Board. Neiman’s plan is to grow by expanding its online presence store and opening more stores outside the U.S. Neiman’s total debt is $4.6 billion and the company has been stung by the strong dollar affecting tourists shopping within the U.S. Revenues for year-to-date fiscal 2015 were $3.9 million, an increase of 5.4 percent over last year’s $3.7 million. This isn’t Neiman’s first trip to the rodeo. It became a public company in 1987, only to be taken private by Texas Pacific Group and Warburg Pincus. These two companies sold it to the current sponsors in 2013.
Luggage company Tumi and online retailer Zulily will report earnings after the market close today. Analysts are expecting Tumi to report earnings of $0.19 a share and Zulily is estimated to report $0.04 a share.