Sector Update: Consumer
Consumer stocks were declining Thursday with shares of consumer staples companies in the S&P 500 slipping about 0.8%. Shares of consumer discretionary firms in the S&P 500 were off about 2.0%.
In company news, Quiksilver Inc ( ZQK ) rallied Thursday after one of the apparel company's major shareholder called its recent turnaround efforts "a failure" and urged ZQK management to scrap the plan and instead explore options to sell the firm.
In a letter to the ZQK board, Ryan Drexler said the company's 11-point profit improvement plan has eroded its financial position and operating performance, with the Consac CEO and president adding that continuing "on this path would be the height of folly.
Drexler owns more than 2 million ZQK shares through Consac.
"The revenue decline by brand indicates to me that the company's fashions have fallen out of favor, its targeted advertising is out of touch with today's consumers, and it has failed to take the necessary steps to maintain market share and profitability," Drexler wrote.
ZQK shares were up nearly 5% at $1.64 apiece shortly before the closing bell Thursday afternoon, just off its session high at $1.67 each. The stock has traded within a 52-week range of $1.40 to $9.29 a share, declining more than 76% over the past 12 months through yesterday's close.
In other sector news,
(+) RT, Swings to fiscal Q1 profit, with adjusted net loss of $0.01 per share beating the Capital IQ consensus by $0.12 per share. Revenue declines 3% year over year to $281.2 mln, narrowly trailing analyst estimates by $1.1 mln.
(-) GPS, CEP Glenn Murphy announces plans to retire at the end of the current fiscal year in February. Reports below-consensus September same-store sales.
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