DONNA KARAN STOCK LOSES MUCH OF WEDNESDAY’S GAIN
NEW YORK — The stock of Donna Karan International, which jumped 2 9/16 Wednesday, lost a lot of that gain Thursday when it dropped 1 9/16 to 13 15/16 on the New York Stock Exchange.
Other designer stocks were mixed, although Montgomery Securities put out “buy” recommendations on Polo Ralph Lauren, Tommy Hilfiger and Nautica. In reports dated Sept. 17, Montgomery initiated coverage of Lauren, calling it an “exceptionally strong brand” with strong growth potential. Montgomery also initiated coverage of Hilfiger, noting it also had ample room to grow, and called Nautica Enterprises a “premier and growing lifestyle brand.”
Nautica gained 1/4 to 27 3/8 on the NYSE Thursday, while Polo Ralph Lauren gave up 3/8 to 26 1/16 and Hilfiger was off 1/16 to 49 1/2. Montgomery set a target price in the low 60s for Hilfiger and 33 for Nautica. She said Lauren could reach 32 in the next 12 months.
Shares of Revlon Inc. fell 7 percent, or 3 5/8, to 49 1/16 after the cosmetics giant cautioned analysts about lower-than-expected third-quarter revenues. But the company still expects to meet analysts’ earnings estimates, in part because of lower selling, general and administrative costs and reduced taxes. Revlon said it remains comfortable with earnings estimates of 62 cents a share for the third quarter and $1.34 for the year. Overall, the Dow Jones Industrials on Thursday rose 36.28 points to 7,922.72.