The stock market performed well on Monday, quickly bouncing back from sharply lower futures as investors shrugged off any fears of an economic impact from the terrorist attacks in Paris on Friday night. By the end of the day, most stocks were substantially higher. Yet that didn't help shares of Clovis Oncology (NASDAQ:CLVS), Dillard's (NYSE:DDS), or Urban Outfitters (NASDAQ:URBN), all of which suffered substantial losses on the day.
Clovis Oncology plunged nearly 70% after the company announced that the Food and Drug Administration had asked for additional clinical data for its efficacy analysis of its lung-cancer treatment candidate rociletinib. CEO Patrick Mahaffy remained confident about the drug's prospects, but Clovis said that it believes that the review will result in a delay in any potential approval for rociletinib. Investors weren't happy about a potential extension beyond the anticipated March 30 FDA review date, especially given the competitive pressures on Clovis from other companies seeking to target the T790M-positive form of lung cancer. Given that Clovis has no drugs currently on the market, any further delays would extend the period during which the company is burning cash in hopes of coming up with an approved drug.
Dillard's fell 6% after reporting poorer financial results for its fiscal third quarter than investors had expected. Net merchandise revenue fell nearly 3% to $1.38 billion for the quarter, with comparable-store sales falling 4%. Net income fell at a sharper 17% rate to $45.7 million, even including a $6 million credit related to the sale of three of Dillard's store locations. The retailer's results were far worse than most investors following the stock had expected, with Dillard's seeing many of the same trends that have plagued other major department-store retailers over the past week. With the key holiday season approaching, investors will be watching Dillard's and other retailers closely to see if they can bounce back from their poor performance.
Finally, Urban Outfitters fell 7% during the regular trading session before plunging another 11% in after-hours trading. The specialty retailer's daytime decline reflected the sour mood among investors in the retail space generally, along with a somewhat strange decision to acquire a restaurant-chain company. Urban Outfitters' results after the market closed Monday afternoon only exacerbated the decline, with the retailer reporting a 1.3% climb in sales and just a 1% rise in comparable retail segment sales including the direct-to-consumer channel. CEO Richard Hayne argued that "the strong customer response to expanded category offerings at each brand bodes well for our future growth," but investors seemed particularly nervous about the growth slowdowns at the Free People and Anthropologie Group chains. Until holiday results start sorting out winners from losers, Urban Outfitters will likely remain under pressure along with the rest of the retail group.