MARKET HAS ROUGH DAY, BUT AVON BUCKS TREND

NEW YORK — Avon Products went against the grain during a tough day on Wall Street, jumping 5 5/8, or 19 percent, to 34 15/16 on the news that its first-quarter sales and earnings would exceed analysts’ estimates.
The continuing rout in technology issues pushed the Nasdaq composite down 7.1 percent, 286.7 points lower and 25 percent off its all-time high. After rising as much as 138 points earlier in the session, the Dow Jones Industrial Average finished the day down 161.95 points, or 1.4 percent.
Some vendor stocks that have seen strong run-ups saw some profit taking, including Guess (down 1 1/16 to 26 1/2), Kenneth Cole Productions (1 1/4 to 42 5/8), Liz Claiborne (15/16 to 44 9/16) and Timberland (1 3/4 to 53 7/16). Estee Lauder Cos. dipped 1/16 to 51 5/16 despite announcing plans to acquire beauty site Gloss.com as part of a new strategy to expand its Internet presence. Claire’s Stores, down 7/16 to 21 7/8, said after the market closed that first-quarter earnings would fall 33 percent below Wall Street’s consensus estimate due to weak sales trends.
Avon said that, in addition to starting to sell its products at Target, its first-quarter earnings would beat consensus estimates of 29 cents per share by about 2 cents and that sales would increase as much as 9 percent. Few approached Avon’s performance, but others to advance in the apparel/retail segment included Nordstrom (up 1 9/16 to 33 3/4), Kohl’s (1 1/16 to 107 1/16), Tiffany (1 1/2 to 77 3/16) and Zale (2 1/2 to 48).

load comments
blog comments powered by Disqus