NEW YORK — Wall Street’s response to December’s mixed bag of same-store sales was equally mixed as investors pulled back on retailers who warned of weakening profits.
As a result, the WWD Composite Stock Index inched up 0.5 percent to 1,118.24 on Friday while the broader S&P 500 gained 3 percent to 1,285.45.
In the retail sector, all of the action was on Thursday afternoon. Stock movement generally reflected whether retailers’ same-store sales results met or missed analysts’ expectations, with some big movers gaining or losing upward of 5 percent.
Suggesting general indecision within the rest of the market as well, the Dow Jones Industrial Average gained just 0.2 percent to 10,882.15 on Thursday while the S&P 500 ended the day flat at 1,273.48.
Positive stock movement was seen in shares of Aéropostale Inc., Nordstrom Inc., Abercrombie & Fitch Co. and Guess Inc., as each company saw its December comps rise significantly higher than analysts’ estimates. Aéropostale shares ended trading up 7.3 percent at $29.71, while shares of Nordstrom closed up 5.3 percent at $39.67 on the New York Stock Exchange. Abercrombie & Fitch saw its shares rise 1.6 percent to $66.02 and Guess Inc. posted a 4.9 percent share-price gain to close at $38.81.
Shares of Wal-Mart Stores Inc., J.C. Penney & Co., Ann Taylor Stores Inc., Kohl’s Corp. and Hot Topic Inc. moved downward, reflecting the companies’ softer-than-expected December same-store sales. Wal-Mart shares dropped 1.4 percent to $45.69 and Ann Taylor’s stock fell 7 percent to $32.69. Shares of Kohl’s were down 6.5 percent at $43.94, while Hot Topic shares decreased 6.8 percent to $13.08 in over-the-counter trading.
But one analyst cautioned investors to look behind the comp numbers to reveal the quality of the month’s results. “The question is what lies beneath? What’s the level of quality?” said John Morris of Harris Nesbitt Research.
American Eagle Outfitters Inc., for example, saw its stock rise 5.3 percent to $24.01 after posting a better-than-expected December comp of 9.8 percent. Morris pointed out, however, that the company, which was heavily promotional during December, did not raise its prior fourth-quarter earnings guidance of 70 to 72 cents. As a result, the company’s fourth-quarter earnings could come in flat with last year’s earnings per share of 70 cents. Analysts’ estimates are for 69 cents in the current fourth quarter.
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