NEW YORK ( TheStreet) -- Retailers rallied in late-day trading ahead of what are expected to be upbeat June same-store sales reports. The S&P Retail Index ended the day up 2.4% to 393.05, led up by same big gainers like Netflix ( NFLX), Borders and Talbots ( TLB).
Borders soared 11.1% to $1.30, following the much-awaited launch of its electronic book store. The company said it plans to capture 17% of the electronic book market by next July through the e-book store. Borders e-store boasts more than 1.5 million titles and thousands of free options. It will also make electronic reading applications powered by Kobo available for select Blackberry and Android phones. Netflix surged 10.5% to $118.49, following rival Blockbuster's ( BLOKA.PK) delisting from the New York Stock Exchange. On Wednesday Netflix announced that it formed a partnership with Relativity Media that will allow its subscribers to stream select movies just months after the DVD release during the films' pay TV window. Such a move was previously not possible due to deals with cable networks like HBO, Showtime and Starz. Abercrombie & Fitch ( ANF) gained 7.1% to end the day at $32.90. While the teen retailer has been lagging the rest of its sector, analysts are estimating a 2.8% increase in same-store sales. Abercrombie struggled during the month with excess inventory, according to analysts, forcing it to drive sales through promotions.
Women's apparel retailers also had a strong showing, with Talbots ( TLB) spiking 11.1% to $11.32, AnnTaylor Stores ( ANN)rising 8.7% to $17.12, Coldwater Creek ( CWTR)climbing 7.6% to $3.53 and Charming Shoppes ( CHRS) jumping 10.2% to $3.71. One of the only retailers in the red was Family Dollar Store ( FDO) after it issued fourth-quarter guidance that fell short of Wall Street's expectations. The dollar store predicts fourth-quarter earnings in the range of 46 cents to 51 cents a share, lower than analysts' estimates of 53 cents. For the full-year, Family Dollar is predicting earnings in the range of $2.53 to $2.58, which is also below Wall Street's consensus of $2.59 a share. This overshadowed the company's third-quarter earnings, which beat estimates by a penny, sending the stock down 8.1% to close at $36.26. Other notable decliners include American Apparel ( APP), which dropped 6.3% to $1.50 and Dollar Tree ( DLTR), which slipped 3.1% to close at $41.61. -- Reported by Jeanine Poggi in New York.