Wall Street was poised for some profit taking today following a bullish run the past few trading sessions as traders eyed a weekly jobs report that remained below a key economic threshold amount.
At the opening bell, the Dow Jones Industrial Average rose 0.1 percent to 17,728 while the S&P 500 was flat at 2,063. The S&P 500 Retailing Industry Group Index fell 0.3 percent to 1,274.
Among the decliners were: Movado Group Inc. with a 8.3 percent slide to $27.83 after the company lowered its earnings guidance; New York & Co. Inc. with a 4.6 percent drop to $3.76; Pacific Sunwear of California Inc. with a 3.8 percent drop to 13 cents; and Target Corp.’s 2.4 percent decline to $81.62.
Industry stocks that gained included: Vera Bradley Inc.’s 2.6 percent increase to $20.42; Vince Holding Corp. with a 2.9 percent gain to $5.99; and Aeropostale Inc. with a 3.3 percent increase to 19 cents.
Shares of Ralph Lauren Corp. were off a slight 0.5 percent to $96.40 at the opening bell following a report from a retail analyst. Ike Boruchow, senior analyst at Wells Fargo Securities, resumed coverage of the company, noting that he believes “that Ralph Lauren continues to be a globally relevant brand with over 500 stores and 12,000 global wholesale doors, though recent macro challenges, management transitions and reorganizations have contributed to the stock’s decline of nearly 50 percent since its highs in late December 2014,” Boruchow said.
He noted that it is “difficult for us to be more constructive on the stock today given a lack of visibility into future earnings.” The analyst pegged the company with a “market perform” rating and has a 12-month price valuation range of $96 to $98 per share.
On the deal-making front, Columbia Pacific Advisors said this morning that it completed the sale of Pow Gloves, Holden Outerwear and Spacecraft Collective, which are three outdoor apparel brands under the Pow Holdings LLC. It was for an undisclosed amount.
Investment bank D.A. Davidson & Co. served as financial adviser to Pow Holdings on the transactions.
The company said Holden Outerwear was sold to a group of private investors. The brand was founded by professional snowboarder Mikey LeBlanc and designer Scott Zergebel, “with a mission to create apparel built on values of quality, style, fit and environmental awareness.” The company said LeBlanc and Zergebel “will continue with the brand under the new ownership.”
Pow Gloves was sold to Rojo Australia, an Australian-based snow apparel brand. “Rojo has retained the executive team and is working on a business-as-usual approach for all markets,” the company said adding that Spacecraft Collective was bought by Omen Longboards, which is a skateboard company based in Lynnwood, Wash. Spacecraft Collective’s offerings include apparel and accessories.
For its part, D.A. Davidson said it has a “dedicated active lifestyle consumer investment banking team,” which has advised on 11 mergers and acquisition deals since 2014 as well as five capital raising efforts in the active lifestyle segment.