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BUSINESS Saturday 18 November 2017
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Shares of online styling service Stitch Fix rise in debut

By JOSEPH PISANI of weak demand for its ini- ever they don’t like. They’re founder Katrina Lake, in the jeans and accessories the
AP Retail Writer tial public offering, charged for anything they company’s IPO filing. company thinks customers
NEW YORK (AP) — Shares of The San Francisco-based keep, minus the $20 fee. It started out selling wom- would buy. Stitch Fix has a
Stitch Fix, an online clothing company, which has near- It was founded six years en’s clothes but has ex- lot of competition, includ-
styling service, jumped 12 ly 2.2 million active users, ago, as an alternative to panded to men’s clothing ing Trunk Club, owned by
percent in their stock mar- ships shoppers clothing to spending hours at the mall and added options like plus department store opera-
ket debut Friday. But the try on at home before they or sifting through several sizes. The company said tor Nordstrom. And Ama-
company sold fewer shares buy. Customers pay $20 online retailers for an outfit. it uses human stylists and zon.com Inc. is rolling out a
and at a lower price than it to receive five items and “I knew there had to be an- data it collects from shop- similar service called Prime
previously expected, a sign they can ship back what- other way,” said CEO and pers to pick out dresses, Wardrobe. q
Retailers rise again, but tech leads other US stocks lower

By MARLEY JAY percent, to $40.82. Hib-
AP Markets Writer bett Sports raised its profit
NEW YORK (AP) — Retailers forecast and expects a
and smaller U.S. compa- smaller decline in an impor-
nies jumped again Friday tant sales measurement. Its
as they continued to report stock climbed $2.25, or 15.2
strong third-quarter results, percent, to $17.10. Foot
but technology companies Locker has fallen 42 per-
and other big U.S. corpora- cent this year and Hibbett
tions couldn’t add to the has dropped 54 percent.
previous day’s gains. Twenty-First Century Fox
A slew of retailers including continued to soar on grow-
discount chain Ross Stores, ing speculation that some
shoe store Foot Locker and of the media company’s
clothing companies Gap assets will be sold.
and Abercrombie & Fitch Comcast is in talks to buy
soared following strong re- Twenty-First Century Fox’s
sults or forecasts. Wal-Mart movie studio, some of its
helped kick off a retail rally cable channels, and its in-
a day ago. Technology, ternational business. The
health care and industrial Wall Street Journal and
companies slumped. On CNBC first reported Com-
Thursday they led stocks cast’s interest. The Journal
to their biggest gain in two Trader Tommy Kalikas works on the floor of the New York Stock Exchange, Friday, Nov. 17, 2017. reported that Verizon and
months. Retailers and smaller U.S. companies jumped again Friday as they continued to report strong Sony are also interested in
Investors have liked what third-quarter results. some of Fox’s assets.
they’ve seen from retailers (AP Photo/Richard Drew) Reports last week said Dis-
the last two days. Invesco she said. “This is only the cused stocks climbed 5.94 said its business remained ney recently discussed a
Global Market Strategist beginning of what they’re points, or 0.4 percent, to strong even though it dealt deal with Fox for the same
Kristina Hooper said the going to need to do to stay 1,492.82. with the effects of several businesses Comcast is now
companies are giving a competitive.” Most of the companies major hurricanes. Gap, too, interested in. Fox is up 25
double dose of good news. The Standard & Poor’s 500 on the New York Stock Ex- did better than expected percent in two weeks after
Consumers are spending index fell 6.79 points, or 0.3 change rose. as sales at Old Navy and it gained $1.83, or 6.2 per-
more, and there are signs percent, to 2,578.85. The The S&P 500 finished slightly Athleta improved and cent, to $31.15. Comcast
some companies are fig- Dow Jones industrial aver- lower for the second week it cut spending. Its stock fell 91 cents, or 2.5 percent,
uring out how to survive in age gave up 100.12 points, in a row after an eight- gained $1.92, or 7 percent, to $36.16. Verizon picked
a world where more and or 0.4 percent, to 23,358.24. week winning streak. to $29.40. up 65 cents, or 1.5 per-
more sales are made on- The Nasdaq composite Ross Stores jumped $6.56, Foot Locker had a solid cent, to $45.42. Electronic
line. dipped 10.50 points, or 0.2 or 10 percent, to $72.25 af- quarter and said that in Arts stock dropped after
“Businesses are starting percent, to 6,782.79 after ter its profit and sales were spite of steep discounts, it the video game company
to evolve and alter their it closed at a record high greater than expected, expects to meet or “mod- announced a last-minute
models and may be able Thursday. and the company raised its estly exceed” its annual change to “Star Wars Bat-
to survive quite well in very The Russell 2000 index of forecast for the rest of the profit and sales forecasts. tlefront II” right before its Fri-
changed circumstances,” smaller and more U.S.-fo- year. The discount retailer It surged $8.97, or 28.2 day launch. q

Foot Locker beats Street third-quarter forecasts

NEW YORK (AP) — Shares of online competition as its “Significant challenges term challenges. The shoe Wall Street expectations.
Foot Locker Inc. surged on competitors and peers in still remain in a very chal- store reported a 35 percent The average estimate of 14
Friday after the company’s the broader retail sector. lenging environment,” said drop in profit to $102 mil- analysts surveyed by Zacks
third-quarter profit topped Specifically, Foot Locker Mike Zuccaro, assistant lion, or 81 cents per share. Investment Research was
Wall Street expectations. has to contend with online vice president and ana- Earnings, adjusted for non- for earnings of 80 cents per
The stock jumped $7.83, businesses such as Zappos, lyst at Moody’s Investors recurring costs, came to share. Revenue fell just un-
or 25 percent, to $39.69 in as well as broader compet- Service. Zuccaro said the 87 cents per share. Higher der 1 percent to $1.87 bil-
morning trading. itive threats coming from company’s market position costs were a key factor in lion. Eight analysts surveyed
The New York company Zappos parent Amazon. “remains solid” and it has weighing down profit. by Zacks expected $1.84
is facing the same tough com Inc. the ability to weather near- Still, the results exceeded billion.q