The recent rally has taken a pause this morning as U.S. stocks are trading modestly in the red.
This story first appeared in the March 8, 2016 issue of WWD. Subscribe Today.
The S&P 500 is lower by 8 points to 1,992, the Dow Jones Industrial Average is declining by 41 to 16,965 and the Nasdaq is lower by 22 points to trade at 4,694. The S&P Retail ETF is higher by 13 cents to $44.95.
Fortress Investment Group agreed to lend Iconix Brand Group Inc. $300 million in order to pay off its notes that are due June 2016. Iconix was intending to refinance the 2.5 percent convertible senior subordinated notes that were due in June. Without a refinancing the company would have had to come up with the $300 million to pay the note-holders, something it looked increasingly unable to do. Iconix stock is rising by over 13 percent to $9.55 on the news.
Vince Holding Corp. is higher by over 7 percent to sell at $7.45 after the retailer guided above consensus for its fiscal year 2016. The company now expects to deliver earnings per share in the range of 32 to 34 cents, which is much better than the Capital IQ estimate of 19 cents a share. Revenues are expected to be in the range of $300.5 million to $302.5 million, also better than the estimate of $288 million. The new guidance includes six new stores.
Michael Kors Holdings Ltd. saw its price target lifted to $64 from $60 by Nomura analysts this morning. The buy rating was maintained. The analyst said Kors would continue to grow sales even though the retail environment remained challenging. Unfortunately, the stock was sliding slightly, losing 13 cents to trade at $57.03.
Pacific Sunwear of California Inc. is down slightly to 21 cents this morning after The Wall Street Journal reported that the company had hired financial advisers FTI Consulting Inc. and Guggenheim Securities as it deals with $160 million in debt that will mature this year.
Elsewhere, the major European indices are trading lower as most of the financial stocks and banks are losing ground. Most eyes are on the European Central Bank meeting on Thursday, where Mario Draghi is expected to cut the deposit rate by 10 to 20 basis points.
The Asian markets turned in a mixed performance with Japan and Hong Kong lower, while China’s Shanghai Composite rose slightly to close up 0.8 percent. Chinese Premier Li Keqiang revealed a GDP growth rate between 6.5 and 7 percent.