NEW YORK (
) - Retail sector stocks largely showed declines on a down day in the broader markets. However,
(DSW - Get Report)
(KORS - Get Report)
were bright spots in the sector.
Michael Kors and Fossil
surged after quarterly reports by both specialty retailers blew past Wall Street quarterly earnings estimates.
Michael Kors reported fiscal first-quarter profit that rose 82% over last year to $125 million, or 61 cents a share. Revenue jumped by 54.5% to $640.9 million over the same period a year earlier. Analysts, according to
, expected the company to earn 49 cents a share on revenue of $570.5 million.
Michael Kors shares rose 3.9% to $70.51.
Fossil shares surged more than 18% to $127 after the company reported record earnings results.
The consumer fashion accessories company, which sells watches, handbags and jewelry, reported second-quarter net income of $67.7 million, or $1.15 per diluted share. That compares to net income of $57.3 million, or 92 cents a share, in the year-earlier quarter.
Fossil's net sales rose 11% to $706 million, it said.
Shares of DSW surged to a new 52-week-high of $82.25 on Tuesday following the company's decision Monday to propose a 2-for-1 common stock split.
The handbag and footwear retailer also raised its full-year earnings guidance to a range of $3.60 to $3.80 a share versus $3.40 to $3.60 a share previously. Second-quarter net sales rose 9% for the quarter to $558 million, while quarterly same-store sales rose 4.3% over the same period last year, DSW said.
The stock was most recently trading up 4.7% to $81.21.
For the most part, though, investors shunned retail stocks, including the biggest losers of the day,
American Eagle Outfitters
(AEO - Get Report)
(JCP - Get Report)
cuts its second-quarter earnings guidance to 10 cents a share from a range of 19 cents to 21 cents a share and said that comparable sales dropped 7% for the quarter. Shares plummeted 14% to $17.19 at last check. Analysts gauged the earnings pre-announcement as a cautionary tale for the broader retail sector, especially as the back-to-school season ramps up this month.