U.S. stocks are starting the day in red territory as earnings continue to roll out.
The S&P 500 is down by 13 points to 2,049, the Dow Jones Industrial Average is down by 127 points to 17,625 and the Nasdaq is down by 30 points to 4,000. The S&P Retail ETF is down by 26 cents to $43.70.
Aéropostale Inc. has filed for bankruptcy protection. The filing on Wednesday morning was in Manhattan bankruptcy court. The teen retailer said it plans to emerge in six months with a “right-sized store footprint.” It also plans to use the process to “shed or renegotiate some burdensome contracts,” as well as resolve its “ongoing disputes with Sycamore Partners.” The company has a commitment of $160 million in a debtor-in-possession financing facility from Crystal Financial.
Kate Spade & Co.’s reported earnings per share of 5 cents that was in line with the FactSet estimate. Net sales in the quarter rose 7.5 percent to $274.4 million from $255.3 million a year ago and beating the FactSet estimate of $267 million. Sales in North America rose 17.1 percent, while international sales only grew 3.2 percent. The company reaffirmed its full year guidance for net sales to be in the range of $1.38 billion to $1.41 billion. The stock, however, was falling by 3 percent to $24.33 as investors chose to sell on the news.
Shopify Inc. posted robust first-quarter sales, but delivering the 95 percent sales gain cost the company a wider loss compared to the same period last year. Results also revealed a greater number of consumers placing orders using mobile devices. Within the total revenues growth, the company said “subscription solutions” revenue rose 73 percent to $38.7 million, “driven primarily by an increase in the number of merchants using our platform.” Shopify stock fell by more than 7 percent to trade near $28.45.
HSN Inc. reported that its net sales for the first quarter dropped 3 percent and net income fell 15 percent. Net income for the quarter came in at $28.6 million, or 54 cents a diluted share, down from $33.7 million, or 63 cents, a year ago. Sales grew in electronics, wellness and culinary, but fell elsewhere. Digital sales increased 3 percent with sales penetration of 52 percent. HSN stock fell by 3 percent to $51.18.
Following the market close on Tuesday, Etsy Inc. reported that its revenue of $81.8 million in the first quarter rose 39.8 percent over last year and beat the FactSet estimate of $75.2 million. Net income for the quarter came in at $1.2 million, or 1 cent per diluted share, up from a loss of $36 million, or negative 84 cents, a year ago. That helped pushed the stock up more than 7 percent to $9.01 in early trading.