Thursday was a reasonably good day for the stock market, with major indexes generally posting modest gains by the close. Investors are still grappling with the ramifications of an economic slowdown in various financial markets, but with the end of the first quarter bringing one of the best quarterly performances for stocks in a long time, market participants seem to be more comfortable with the situation than they were three months ago. In addition, several retail-oriented companies reported favorable earnings results that suggested that the consumer economy remains strong. Movado Group (MOV 3.05%), PVH (PVH 5.00%), and Five Below (FIVE 2.79%) were among the top performers. Here's why they did so well.
Check out the latest earnings call transcripts for Movado Group, PVH, and Five Below.
Watch Movado soar
Shares of Movado Group skyrocketed almost 23% after the watchmaker reported its fourth-quarter financial results. Movado said that revenue increased 34% during the period, with the acquisition of the fashion watch pioneer MVMT complementing organic growth of greater than 10%. The company also posted a nearly 30% jump in adjusted earnings per share, and CEO Efraim Grinberg believes that despite challenging industry conditions globally for the watch business, Movado will be able to deliver strong growth in fiscal 2020 by continuing to innovate and use marketing effectively. Investors were pleased with the news, although the stock still has further to go before it can regain its best levels from mid-2018.
PVH looks fashionable
PVH's stock climbed nearly 15% following the release of its fourth-quarter financial report. The company behind several well-known fashion brands said that revenue for the quarter was down 1% from the prior-year period, but that was due largely to there being an extra week in last year's quarter. Adjusted comparable-store sales for the Tommy Hilfiger segment soared 16%, helping to overcome more sluggish performance from its Heritage Brands group and the Calvin Klein brand. More encouragingly, PVH sees the coming year looking stronger, with key acquisitions supplementing the positive impact of organic growth. Even though additional challenges remain, shareholders are pleased the company did so well during the holiday season.
Five Below keeps shoppers happy
Finally, shares of Five Below rose 8%. The teen- and tween-focused retailer reported a 19% rise in net revenue during its fiscal fourth quarter, with net income climbing 32% during the holiday season. Five Below also said that it plans to accelerate its store expansion plans during 2019, expecting to open between 145 and 150 stores to bring its network to as many as 900 locations by the end of the year. Add that to encouraging guidance in sales and profits for the coming year, and it's easy to understand why Five Below investors are happy about how the retailer is performing in what's been a tough couple of years for many companies in the retail space.