Urban Outfitters, Gildan, lululemon Plunge

Mayank Mehta
11 Dec, 2008
New York City

Urban Outfitters indicated flat sales in November and weak holiday sales environment. Gildan Activewear declined after it missed fourth quarter earnings and estimated sharply lower than expected earnings in the current quarter. lululemon Athleticca dropped on weaker than expected earnings.

[R]1:30PM New York – Apparel makers lululemon Atheltica and Gildan Activewear plunge after earnings. Ciena led decliners in the S&P 500 index stocks.[/R]

Of the stocks in S&P 500 index, 289 increased, 208 decreased and 3 are changed. Banks, automakers and real estate investment trusts led decliners.

Ciena Corp led decliners in the S&P 500 index with a fall of 17.2% followed by losses of Sprint Nextel Company of 13.6%, in Equity Residential Properties of 9.8% and in Gannett Company of 8.9%.

Alfacell Corporation ((ACEL)) climbed 11.5% or 3 cents to $0.290 after the biopharmaceutical company reported no revenues during the three months ended October 31, 2008 and October 31, 2007. Net loss in the first quarter was $2.8 million or 6 cents per diluted share compared to net loss of $2.7 million or 6 cents per share a year ago.

Anadarko Petroleum Corporation ((APC)) rose 5.5% or $2.03 to $38.48. The oil and gas exploration and production company stock rose after it reported oil drilling success at a well in Jubilee field near offshore Ghana.

AmerisourceBergen Corporation ((ABC)) gained 5.5% or $1.66 to $31.85 after the pharmaceutical services company expects 2009 earnings between $3.08 and $3.25 per share, an increase of 7% to 12% over the $2.89 from continuing operations in fiscal 2008. The company left its revenue growth guidance between 1% and 3%.

Cherokee Inc ((CHKE)) rose 5.7% or 80 cents to $14.80 after the licenses and manages apparel licensor and seller said third quarter revenues fell 10.1% to $8.04 million from $8.94 million a year ago. Net income in the quarter fell 12% to $3.3 million or 37 cents per diluted share compared to net income of $3.7 million or 41 cents per share a year ago.

Ciena Corporation ((CIEN)) decreased 18.1% or $1.37 to $6.19 after the communications equipment maker reported fourth quarter revenues fell 17% to $179.7 million from $216.2 million a year ago. Net loss in the quarter was $25.4 million or 28 cents per diluted share compared to net income of $30.4 million or 30 cents per share a year ago.

FuelCell Energy, Inc ((FCEL)) added 4.3% or 16 cents to $3.86 after the development and manufacturing of fuel cell power plants for electric power generation said fourth quarter revenues rose 59% to $26.2 million from $16.5 million a year ago. Net loss in the quarter was $24.3 million or 35 cents per diluted share compared to net loss of $16.8 million or 25 cents per share a year ago.

General Motors Corporation ((GM)) dropped 7.1% or 33 cents to $4.27 after auto parts makers suggested prepayment from the company on the worries that the company may not have enough liquidity. In the event the company is forced into bankruptcy, part makers, dealers and bond holders will have to offer concessions.

Gildan Activewear Inc ((GIL)) plunged 36% or $5.02 to 49.15 after earnings in the fourth quarter dropped to $21.42 million or 18 cents per share from $40.87 million or 34 cents a share a year ago quarter. The company in the quarter took $1 million restructuring charge compared to $4.9 million in the quarter a year ago. In the latest quarter the company took one-time charge of $26.9 million on tax settlement with the Canadian tax agency. The company also guided earnings in the first quarter between breakeven to 5 cents a share compared to 23 cents in the quarter a year ago.

J. C. Penney Company, Inc ((JCP)) declined 7.1% or $1.59 to $20.71 as retailers fell in trading. Hess Corp led gainers with a rise of 12.5% followed by increases in United Health Group of 11%, Anadarko Petroleum of 9.4% and in Mckesson Corp of 9%.

King Pharmaceuticals, Inc ((KG)) lost 8.3% or 84 cents to $2.23 after it said the U.S. health regulators declined to approve its experimental abuse-resistant painkiller Remoxy in its present formulation.

lululemon athletica Inc ((LULU)) dropped 26.2% or $2.74 to $7.72 after the designer and retailer of technical athletic apparel primarily in North America reported third quarter revenues rose 34% to $87.0 million from $64.9 million a year ago. Net income in the quarter rose 16% to $8.8 million or 13 cents per diluted share compared to net income of $7.6 million or 11 cents per share a year ago.

Morgan Stanley ((MS)) decreased 5.0% or 73 cents to $13.87 after investment and commercial banks declined.

Nevada Gold & Casinos, Inc ((UWN)) fell 6.9% or 0.03 cents to $0.40 after the operator of gaming facilities and lodging entertainment facilities in Colorado and California reported second quarter revenues fell 21% to $1.5 million from $1.9 million a year ago. Net loss in the quarter was $1.6 million or 13 cents per diluted share compared to net loss of $0.6 million or 5 cents per share a year ago.

Source Interlink Companies, Inc ((SORC)) gained 32% or 6 cents to $0.250 after the marketing service provider said third quarter revenues fell 7.4% to $591.7 million from $639.1 million a year ago. Net loss in the quarter was $36.60 million or 70 cents per diluted share compared to net loss of $4.46 million or 9 cents per share a year ago.

Urban Outfitters, Inc ((URBN)) plunged 19.3% or $3.65 to $15.21 after it indicated flat sales in November and weak holiday sales. Analysts also cut its rating downgraded stock.