Retail Winners: Nike, GameStop, Borders
NEW YORK (TheStreet) -- There are some big retail movers Thursday afternoon, as earnings season winds down for the sector.
One of the day's biggest gainers is
Stein Mart
(SMRT) - Get Report
, which is surging by 12.8% to $10.66 after it reported fourth-quarter results that topped estimates.
During the quarter, the department store swung to a profit of $2.7 million, or 6 cents a share, compared with a loss of $56.2 million, or $1.35, in the year-ago period. Excluding store closing and impairment charges of 13 cents per share, Stein Mart's profit was 19 cents, higher than the 17 cents a share analysts forecast.
Stein Mart's sales fell 6% to $341.8 million, while its same-store sales declined 6%.
GameStop
(GME) - Get Report
is also spiking on its better-than-expected earnings and optimistic guidance.
During the quarter, GameStop earned $215.9 million, or $1.29 a share, a 7% decline compared with $232.3 million, or $1.39, in the year-ago period. Analysts expected the video game retailer to earn $1.28 a share.
The company attributed the profit decline to weak same-store sales during the all-important holiday season, which tumbled 7.9%. Still, revenue increased to $3.52 billion from $3.49 billion in the prior year.
Looking ahead, however, GameStop foresees full-year earnings in the range of $2.58 to $2.68 a share, significantly higher than Wall Street's forecast of $2.26 a share.
Shares of GameStop are growing 7.7% to $21.39.
Nike
(NKE) - Get Report
, in its first quarter with following the Tiger Woods scandal, saw its profit more than double, receiving a boost in international markets.
Nike's revenue grew 7% to $4.7 billion, with China seeing the biggest lift.
As a result, UBS upped its price target on Nike stock to $76 from $74 and raised its 2010 earnings estimates.
The athletic apparel and footwear retailer hit a new 52-week high of $75.35 earlier today, before pulling to exchange hands at $74.53.
Women's apparel retailer
New York & Company
(NWY)
is gaining as it returns to a profit in its fourth quarter, despite missing revenue forecasts.
During the quarter the company earned $2.5 million, or 4 cents a share, in-line with consensus estimates. Revenue, however, sank 8.3% to $298 million, while same-store sales decreased 7.7%.
Shares of New York & Company are, nonetheless, up 8.4% to $4.78 in afternoon trading.
Borders
(BGP)
is spiking 11% to $2.22 following rival
Barnes & Noble's
(BKS) - Get Report
announcement of the appointment of a new CEO.
The book retailer promoted William Lynch, who helped develop and launch the company's Nook electronic reader.
Former CEO Steve Riggio will remain vice chairman.
Shares of Barnes & Noble are also rising 2.3% to $22.84 in afternoon trading.
Ross Stores
(ROST) - Get Report
is falling 3.2% to $52.25 after it posted fourth-quarter earnings that matched expectations. Investors are disappointed that the off-pricer didn't exceed analysts' estimates.
Still, fourth-quarter earnings nearly doubled, reaching $142.9 million, or $1.16 a share, compared with $97.4 million, or 76 cents, in the year-ago period. Revenue rose 14% to $1.98 billion, while same-store sales jumped 10%.
Looking ahead, Ross predicts full-year earnings in the range of $3.80 to $3.95 a share, while Wall Street is anticipating $3.89 a share.
Blockbuster
(BBI) - Get Report
is still tanking following its warnings in Tuesday that bankruptcy may be looming.
The movie rental retailer said in a Securities and Exchange filing that it might be forced to file Chapter 11 if cash flows don't improve and it is unable to restructure its debt. Blockbuster reportedly has about $1 billion in debt.
Since then, Blockbuser stock has plunged 30% to close on Wednesday at 28 cents, and is currently down 6.7% to 26 cents in Thursday afternoon trading.
-- Reported by Jeanine Poggi in New York.
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