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 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.
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The article Why R.G. Barry Shares Popped and Then Fell originally appeared on Fool.com.
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