Stocks moved higher following the Federal Reserve’s decision to leave interest rates unchanged.
Fed chair Janet Yellen implied that instead of four rate hikes this year, there would possibly only be two hikes. Yellen did note that the economy had been expanding at a moderate pace despite global developments. She also said that net exports had been soft.
The S&P 500 closed up 11 points to 2,027, the Dow Jones Industrial average ended the day higher by 74 points at 17,325 and the Nasdaq added 35 points to close at 4,763. The S&P Retail ETF lost 36 cents to close at $45.32, mostly due to the proposal of a grocery store merger between Apollo and The Fresh Market.
Guess Inc. stock plunged more than 9 percent in after-hours trading after the retailer reported a drop in its earnings for the fourth quarter. Earnings per share fell to 57 cents from last year’s 63 cents and missed the FactSet estimate of 58 cents per share. Revenues decreased 6 percent to $658 million, slightly better than the FactSet estimate of $657 million. Net earnings for the fiscal year dropped 13.4 percent to $81.9 million from $94.6 million last year.
Tilly’s Inc. reported that its net sales for the fourth quarter increased 4.1 percent to $159 million over last year’s $153 million and beating the FactSet estimate of $155 million. Comparable store sales decreased 0.9 percent. Diluted earnings per share were 10 cents, which was a penny shy of the FactSet estimate of 11 cents per share in earnings. The outlook for the first quarter of 2016 is for comp sales to decrease 3 to 6 percent and a net loss per diluted share of 6 to 10 cents. Tilly’s stock was higher by 9 cents to $8.01 in after-hours trading.
DSW Inc. dropped more than 5 percent to $26.82 following the company’s earnings announcement on Tuesday. Johnson Rice analyst David Mann downgraded the stock to accumulate from buy with the blame placed on muted guidance. Other analysts though were more positive with MKM Partners raising their price target to $30 and Buckingham Research raising their price target to $33.
Stein Mart Inc. stock fell almost 5 percent to close at $7.37 after the retailer appointed Dawn Robertson as chief executive officer. Jay Stein, the former ceo will remain as chairman of the board. Robertson will also be a member of the board of directors and have responsibilities of chief merchant. Stein Mart stock has fallen 39 percent for the past year as the retailer has struggled with disappointing sales.
Under Armour approved the issuance of a new class C non-voting common stock through a stock dividend to all existing Under Armour shareholders. The one for one stock issuance will have the same effect as a two-for-one stock split. The new stock will be distributed on or about April 7. Under Armour stock fell by 2 cents to close at $81.