It’s the first day of March and stocks are off to a good start with the S&P 500 climbing 13 points to 1,945, the Dow Jones Industrial Average up 85 points to 16,601 and the Nasdaq rising 35 points to 4,593. The S&P Retail ETF is higher by 22 cents to $43.54.
Kate Spade & Co. stock is climbing over 6 percent to $21.10 as the company reported adjusted earnings per share of 32 cents, which was better than last year’s 24 cents for the fourth quarter and in line with the FactSet estimate of 32 cents. Net sales were $429 million, which was a 30 percent increase over last year, but shy of the FactSet estimate of $441 million. Net income of $62 million for the quarter was lower than last year’s $126 million, but last year Kate Spade recorded an $88 million tax benefit. Investors are pleased with the results and believe Kate Spade may be signaling a return of handbag sales.
JD.com stock is popping over 5 percent to $27.11 after the Chinese e-commerce giant delivered sales in the fourth quarter of $8.4 billion that beat the FactSet estimate of $7.9 billion. Net losses, though, grew to $1.16 billion, which was six times more than last year; the company blamed the loss on the impairment charges related to the failure of Paipai.com. Revenue is expected to continue to be strong in 2016 as it is forecast to grow 45 to 50 percent.
Crocs Inc. is plunging over 13 percent to $8.51 after the shoe maker delivered fourth quarter earnings after the market close on Monday of a loss of 72 cents a share, which was much greater than the FactSet estimate of a loss of 33 cents a share. Sales of $209 million were better than the FactSet estimate of $202 million. Crocs forecast for the current quarter also was lower than what analysts were expecting. Crocs is closing stores and discontinuing styles.
Discount shoe chain DSW Inc. is seeing its stock slide by over 3 percent to $25.25 following a downgrade from Goldman Sachs to “sell” from “neutral.” DSW stock has dropped 33 percent over the past 12 months, although in the past month the stock has begun to recover and has moved higher by almost 2 percent.
Elsewhere, the Asian markets were all lifted higher. The European indices are also higher across the board with Germany leading the way. However, Germany’s Chancellor Angela Merkel warned that the refugee crisis may create turmoil in the region. In the U.K. Barclays bank tumbled over 9 percent after reporting a decline in profits and a plan to cut its dividend.
Looking ahead, Ross Stores will report earnings after the close of the market today. The FactSet estimate for Ross Stores fourth quarter is for earnings per share of 64 cents and sales of $3.2 billion.