Stocks in Motion: Nike
Shares of Empire Resorts (NYNY) were among Nasdaq's winners Wednesday, jumping 9% after the gaming company said the Department of the Interior issued a favorable letter regarding the development of a casino in the Catskills.
The department's letter to New York Gov. George Pataki confirmed the validity of an agreement related to the transfer of land into a trust for development, and cleared the way for final approvals for the gaming facility, which is being developed by the company and a local Mohawk Indian tribe. "This letter has removed a good deal of uncertainty regarding our project's federal approvals," said Empire Resorts President and CEO David Hanlon in a statement. "There was conflicting information in play, but this clarification has erased all doubts." The company's shares were up 62 cents to $7.25.
Nike (NKE) reported a blowout second quarter but saw its shares fall due to disappointing orders. The sneaker and apparel maker earned $301.1 million, or $1.14 a share, in the quarter ended Nov. 30, compared with $261.9 million, or 97 cents a share, a year ago. Sales rose 10% from last year to $3.5 billion. Analysts surveyed by Thomson First Call were forecasting earnings of $1.03 a share on sales of $3.44 billion. Nike said orders for future deliveries totaled $5.2 billion at the end of the quarter, up 2.5% from a year ago due mainly to currency fluctuations. The stock lost $3.91, or 4.4%, to $84.57.
Warnaco (WRNC) announced an agreement to buy the licensed Calvin Klein businesses in Europe and Asia, as well as a line of sportswear and accessories, for about $286 million. The apparel company expects the deal to add to fiscal 2006 earnings. Warnaco already distributes Calvin Klein products such as jeans, underwear and swimwear, and the company now expects the Calvin Klein business to generate more than $900 million in revenue beginning in 2006. Shares were trading up $2.38, or 10%, to $25.78.
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