Stocks are slipping in early trading as third-quarter gross domestic product advanced 1.5 percent, a bit shy of the expected 1.6 percent and pending home sales for September fell 2.3 percent. The S&P 500 dropped 3 points to 2,087, the Dow Jones Industrial average slipped 53 points to 17,725 and the Nasdaq declined 16 points to 5,079.
Steve Madden stock jumped more than 4 percent in early trading to $35.04 after the chow company beat its third-quarter earnings expectations. Net sales increased 5.5 percent to $413.5 million as compared to $392 million in 2014. Net income was $42.9 million or 70 cents a share compared to $39.2 million or 62 cents per share. Chief executive officer Edward Rosenfeld said the earnings benefited from the recently acquired Dolce Vita, Blondo and SM México. The company said it expects 2015 net sales to increase in the range of 6 to 7 percent over 2014.
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The Gap stock declined more than 1 percent to $26.64 after Barclays initiated coverage with an underweight rating and a $22 price target. The analyst cited ongoing uncertainty around the company’s rebranding. The note went on to suggest that margins are facing headwinds and that earnings per share could decline even more. The analyst estimates that earnings for fiscal 2015 will be $2.55 cents per share and that 2016 earnings will be $2.30 a share.
Children’s clothing company Carters is down more than 3 percent this morning after the company lowered guidance for the fourth quarter. Carter’s delivered earnings of $1.51, which was 5 cents better that the consensus of $1.46. Revenues rose 6.4 percent year-over-year to $849.8 million over last year’s $852.67. Carter’s trimmed guidance for the fourth quarter to a range of $1.22 to $1.30 and said it expects net sales to be down 2 percent year-over-year versus the consensus that expected an increase of 3 percent.
Looking ahead, Columbia Sportswear Comp. and Deckers Outdoor Corp. will report earnings after the market close today. Estimates for Columbia are for $1.09 a share and Deckers estimates are for $1.06.