Abercrombie & Fitch ( ANF) reported a bigger-than-expected drop in same-store sales for the fiscal first quarter and issued a full-year earnings outlook below analyst estimates. Abercrombie reported an 8.9% dip in sales to $838.8 million, short of Wall Street's expectations of $941 million. Same-store sales fell by 15%. The teen apparel retailer said it lost $7.2 million, or 9 cents a share, in the quarter, compared with a year-earlier loss of $21.3 million, or 25 cents a share. Analysts had expected a loss of 5 cents a share. CEO Mike Jeffries attributed the weaker-than-expected results to "more significant inventory shortage issues than anticipated, added to by external pressures." Jeffries said that the merchandise shortage problem was "largely" resolved. Jeffries has come under fire as of late after comments he made in an interview with Salon.com seven years ago resurfaced, in which he referred to the "exclusionary" nature of the brand and how the company wanted only "cool" and "good-looking" kids to wear its clothes. Looking ahead, the company forecast earnings per share of 28 cents to 33 cents for the current quarter, in line with the Street's expectations of 31 cents.
A federal judge has ruled in favor of Microsoft ( MSFT) in a patent case brought against the company by Motorola Mobility. U.S. District Judge James Robart set royalty rates determining what would be a fair amount for Microsoft to pay Motorola Mobility for use of some of its patented technologies. In the ruling, Microsoft was ordered to pay about a half-cent per unit for video-decoding technology and three and a half cents for wireless technology. According to Microsoft, that equates to about $1.8 million a year. Motorola Mobility, a subsidiary of Google ( GOOG), had originally sought 2.25% of the retail price on Microsoft products. Microsoft said that would amount to the company paying Motorola about $4 billion a year for its use of its wireless and video-decoding technology. Microsoft had said $1.2 million annually would be a more reasonable amount to pay. The ruling ends the case filed by Motorola Mobility in November 2010.
The chatter on Main Street (a.k.a. Google, Yahoo! and other search sites) is always of interest to investors on Wall Street. Thus, each day, TheStreet compiles the stories that are trending on the Web, and highlights the news that could make stocks move. -- Written by Brittany Umar.