Sector Update: Consumer


Consumer stocks are slightly lower in afternoon trading, with shares of consumer staples companies in the S&P 500 falling 0.2%. Shares of consumer discretionary firms in the S&P 500 are down about 0.1%.

In company news, Jos. A. Bank ( JOSB ) dropped its hostile bid for rival Men's Wearhouse ( MW ), prompting MW's largest individual shareholder to launch a proxy fight to oust the current MW board and force a deal.

Eminence Capital, which owns about 9.8% of MW's stock, this morning proposed changing the company's bylaws to allow shareholders to remove directors without cause, filing a preliminary solicitation statement with market regulators. It also is seeking a special meeting of MW shareholders to vote on the proposed bylaw changes to remove sitting directors before the company's next annual meeting.

Under Texas law, a special meeting can be called with the support of at least 10% of a company's shareholders.

JOSB terminated its $48 per share cash buyout offer and said it would now consider other strategic options, citing the refusal of the MW board to discuss a possible deal. But it left the door ajar for a possible acquisition, stating it would "immediately consider whether a new proposal ... is warranted," should the MW board change its stance on its offer.

JOSB last traded 0.7% higher at $50.67 apiece, reversing a steep pre-market decline, while MW is up 0.8% at $46.47 a share.

In other sector news,

(+) TTS, (+1.7%) Refutes allegations it needs to restate past financial results, stating they are accurate and adding its business practices are appropriate. Also affirms in-line guidance for $227 mln to $237 mln in FY13 revenue. Street is at $231.83 mln.

(-) SUMR, (-22.6%) Q3 net loss of $0.07 improves on 3.63 per share loss last year but still trails analyst estimates expecting $0.02 per share profit. Revenue declines 21.1% year over year to $50.5 mln, missing by $7.57 mln. Announces more job cuts.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities

Referenced Stocks: JOSB , MW

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