Shares of specialty retailers rose Monday against a backdrop of lackluster market action.
Shares of The Michaels Cos. (MIK) - Get Michaels Companies Inc Report rose Monday after the company signed a deal with (UPS) - Get United Parcel Service, Inc. Class B Report UPS for 1,100 of its stores to serve as drop-off and pickup points for package delivery services.
Other specialty retailers also saw gains.
Michaels shares ended up 39 cents or 4.2%, at $9.51. The stock saw strong performance in September on better-than-expected earnings, noted Jon Heller, retail-stocks columnist for Real Money, TheStreet's premium site for active investors. The gains Monday were likely "due to the addition of UPS access points at 1100 stores," he said.
Shares of other specialty retailers also rose on a day when the markets were lower. Francesca's Holdings Corp. (FRAN) - Get Francesca's Holdings Corporation Report rose $1.21, or 9%, to $14,.93. Signet Jewelers (SIG) - Get Signet Jewelers Limited Report gained $1.59, or 10%, to $17.84.
Heller noted that Francesca's recently went through a reverse stock split and that it has a very small market capitalization, making big price jumps more frequent.
In addition, "Retailers have been hammered so badly in some cases, that market has overreacted to the downside; things may still be bad, but not as bad as originally thought," Heller said.