Retail stocks took a drubbing Monday, sliding 0.8 percent on what was generally an up day for the markets. But a number of fashion firms, Phillips-Van Heusen Corp. included, raised quarterly profit guidance, noting business has been better than expected.
This story first appeared in the January 12, 2010 issue of WWD. Subscribe Today.
The S&P Retail Index fell 3.25 points to 413.64, while the Dow Jones Industrial Average advanced 0.4 percent, or 45.80 points, to 10,663.99 as investors digested a rise in Chinese exports and anticipated fourth-quarter results from aluminum maker Alcoa Inc., which reported a smaller loss after the markets closed.
A digest of other market action Monday:
• PVH on the Rise: The shirt producer and owner of Calvin Klein said its fourth-quarter profits would rise to a range of 52 cents to 54 cents a year ago, ahead of the 38 cents to 42 cents previously expected. Revenues are slated to come in at $603 million to $608 million, a rise of 7 percent to 8 percent from the adjusted results of a year ago. PVH said royalty revenue from the Calvin Klein brand would rise at least 10 percent for the quarter. Prior to the new projections, shares of PVH slid 0.2 percent to $43.50.
• Lundgren’s Stock Sale: Terry Lundgren’s past efforts are paying off. The Macy’s Inc. chairman, president and chief executive officer plans to sell 300,000 shares of company’s stock. The stock was initially given to him as options under the firm’s 1995 executive equity incentive plan, according to a filing with the Securities and Exchange Commission. Lundgren exercised the options at a price of $16.22 in 2000. Subtracting that from Monday’s closing price of $16.62, Lundgren would net about $120,000.
• Dress Barn’s Jump: Dress Barn Inc. raised its profit guidance for the year ending July 31 by 5 cents to a range of $1.40 to $1.50 a diluted share. The stock dipped 1.8 percent to $24.47.
• Caché’s Counter-trend: Caché Inc. said its fourth-quarter sales were stronger than planned, at $64 million to $65 million, but markdowns ate away at the bottom line and adjusted earnings per diluted share are slated to come in at 1 cent to 3 cents, well below the 12 cents to 15 cents previously projected. Prior to the update, the stock rose 4.6 percent to $4.74. Caché also said Lusia Moskvicheva joined the firm as senior vice president and head designer.
• Delta’s Art Gun: Delta Apparel Inc. finalized its acquisition of on-demand graphics firm Art Gun Technologies LLC and said profits for the second quarter ended Dec. 26 would increase to 9 cents to 11 cents a diluted share, up from 7 cents a year earlier. The stock advanced 6 percent to $11.66.