Why R.G. Barry Shares Popped and Then Fell

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our thesis.

What: Shares of R.G. Barry Corporation (NASDAQ: DFZ  ) jumped as much as 11% on its earnings report, but finished up 2% as shares fell throughout the course of the day.

So what: The maker of footwear-and-handbags maker said earnings per share reached $0.46, a penny below estimates, while revenue dropped 1% to $48 million, missing estimates of $51.1 million. Performance was in line with previous guidance, though management cited industrywide weakness in footwear for the slow sales. CFO Jose Ibarra noted "economic headwinds and a challenging financial environment," and reaffirmed that revenue would be slightly down this year.

Now what: Considering the unimpressive earnings report, it's a wonder why shares of R.G. Barry spiked in the first place. The stock is lightly traded and thus makes volatile swings, which seems to be the best explanation for the early morning jump. Considering the general industry woes after a weak holiday season, perhaps investors shouldn't be concerned about the slight decline in sales.

Who will rule in 2014
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2823860, ~/Articles/ArticleHandler.aspx, 9/19/2014 6:09:54 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement