NEW YORK ( TheStreet) - Retail sector stocks took a nosedive on Tuesday, following the trend in the broader markets over concerns that the U.S. would mount an airstrike against Syria, and, on the home front, fresh worries that Congress will find itself once again in a stalemate over the debt ceiling and spending cuts.
The S&P 500 Retailing Index dropped 1% to 813.84.
There were however, a few bright spots in the sector, as several accessories companies posted better-than-expected quarters.
Movado (MOV) surged 9.68% to $41.68, briefly hitting a new 52-week-high of $42.56.The luxury watch maker said net income was jumped by 55% to $12.5 million, or 48 cents a share compared to $8.1 million, or 32 cents a share, in the second-quarter of fiscal 2013. Adjusted net income, which excludes a 4-cent tax benefit, came in at $11.5 million or 44 cents a share. Movado's net sales increased 17.2% to $138 million compared to $118 million in the year-earlier quarter, driven by growth in every brand category, the Paramus, N.J.-based company said. Analyst polled by Yahoo! Finance pegged the company to post earnings of 32 cents a share on sales growth of 15% to $136 million. Movado also boosted its quarterly cash dividend by 60% to 8 cents a share. Shoe retailer DSW (DSW) bounded 6.9% higher to $86.92 after it also posted better-than-expected quarterly results. The Columbus, Ohio-based company reported net income of $33.7 million, or 73 cents a share. Adjusted for a 3-cent loss related to the store's luxury test as well as 20 cents related to the termination of its pension plan, net income was $44.6 million, or 97 cents a share. Wall Street analysts was looking for the company to post earnings of 80 cents a share. Sales rose 9.7% to $562 million, slightly ahead of analysts' expectation of $560 million. Comparable store sales rose 4.4% in the quarter. Earlier in the month, the company raised its full-year guidance to a range of $3.60 to $3.80 a share.
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