The stock market is opening modestly lower as yesterday’s move by the Federal Reserve to not raise rates caused the dollar to drop.
The S&P 500 was dropping by 3 points to 2,023, the Dow Jones Industrial average was down by 18 points to 17,307 and the Nasdaq was down by 18 points to 4,745. The S&P Retail ETF was down by 19 cents to $45.13.
Lands’ End Inc. delivered a fourth-quarter loss that missed analyst’s estimates, but managed to bring in revenue that beat the expectations. The net loss for the quarter was $39 million, or $1.23 per diluted share, a big drop from last year’s net income of $33 million, or $1.03 per diluted share. Revenue for the three months ending Jan. 29 decreased to $473.5 million from $504.6 million a year earlier. This topped the FactSet estimate of $468 million. The company did not give forward guidance, but they did say that the company should be able to show sequential improvement beginning in the second quarter. The stock was losing 15 cents to trade at $24.08.
Hit by currency fluctuations, Guess Inc. on Wednesday reported an 11.4 percent drop in profits on a 1 percent increase in sales for the fourth quarter ended Dec. 31. Net income for the quarter fell to $47.8 million, or 57 cents a diluted share, down from $53.9 million, or 63 cents, a year ago. While within the company’s earlier guidance, the profits missed the FactSet estimate for earnings of 58 cents a share. Guess said the negative impact of currency on earnings was equal to about 19 cents a share. Guess stock fell over 15 percent to $18.07 in early trading.
The Cato Corporation delivered net income of $11.8 million or 42 cents per diluted share, which easily beat FactSet estimates of 34 cents per share. For the quarter net income increased 28 percent and earnings increased 27 percent. Sales for the fiscal fourth quarter were $247.3 million, an increase of 4 percent from sales of $237.8 million last year. For the year, sales topped $1 billion, which was a company record. For all the good news though, Cato said it expects 2016 to be a difficult year. Cato stock was up by 14 cents in early trading to sell at $36.85.
Elsewhere in economic news, initial jobless claims rose by 7,000 to 265,000 for the week ending March 12. Claims have now remained under the 300,000 threshold for the longest period since 1973. The Commerce Department said that the current account deficit fell 3.6 percent to $125.3 billion in the fourth quarter.