US markets started and dipped sharply on economic worries
as jobless claims rose unexpectedly. However major benchmark indexes struggled to resist against selling pressure and hence NASDAQ succeeded to turn itself in green.
Shares of Aeropostale Inc. dived 15.7 percent in Thursday morning trade after the apparel retailer cut its first-quarter outlook on poor same-store-sales and increased overheads - a sign that the current economic climate continues to be a drag on the company's earnings.
Aeropostale, which has been seeing lower profits for the past two quarters, said because of weaker-than-expected sales and margins, it now expects first-quarter earnings at about $0.20 per share. This compares to its March guidance of $0.35 to $0.38 per share. Aeropostale reported a sluggish 1 percent rise in first-quarter revenues of $469.2 million from the prior year. Twenty-Seven Wall Street analysts have a consensual revenue estimate of $477.59 million for the quarter. Soon after releasing these figures, the company´s shares were heading the FashionUnited Top 100 Index top losers group, with an initial loss of 17.3%.
Within the same chapter it was to be found the affordable department stores chain J.C. Penney, which raised its first-quarter earnings guidance, though it posted disappointing monthly same-store sales for April. However, its shares slipped 4.1% to $37.80 premarket as sales for the quarter also fell slightly short of views. For the period ended April 30, Penney expects earnings of about 24 cents a share, up from its prior view of 18 cents to 23 cents, which was short of estimates when given in February. Its sales for the quarter edged up 0.4% to $3.94 billion, slightly behind the $3.98 billion Wall Street estimate.
On the other end of the spectrum, shares of rival Abercrombie & Fitchare trading higher, following its better-than-expected first-quarter sales results. The big surprise came hand in hand with Men's Wearhouse that raised its first-quarter guidance, sending shares skyrocketing 17% to $32.70.