The morning heat index is dominated by retailers and firms that serve them with G-III Apparel Group, Talbots and Pep Boys all dropping due to weak earnings reports. In addition, packaging manufacturer Temple-Inland got a big boost from a serious buyout bid.
Temple-Inland (NYSE: TIN), the Indiana-based packaging company specializing in corrugated products and building materials, skyrocketed about 40% to more than $29 on nearly 15 times normal trading volume. The massive jump came after International Paper (NYSE: IP) put in a cash offer to buy TIN for more than $30 per share.
Talbots (NYSE: TLB) dropped a worrying 38% on more than 11 times normal stock volume. Shares were trading below $2.80 midday. Retailer Talbots reported first quarter adjusted operating income of about $8 million, down from $32 million during the same period in 2010. TLB is down 70% since the beginning of the year.
Auto parts retail chain Pep Boys (NYSE: PBY) fell more than 19% to about $11 on 5 million shares. The fall began in after-hours trading on Monday following a disappointing first quarter earnings report. Pep Boys disappointed analysts with reported first quarter revenues of $513 million, off from the expected $537 million. Analysts even less happy with reported EPS of 23 cents compared with expected 30 cents.
G-III Apparel Group (NASDAQ: GIII) was down more than 11% on more than five times normal trading volume. GIII is a clothing manufacturer that provides wares for JC Penny (NYSE: JCP), Kohl’s (NYSE: KSS), and Macy’s (NYSE: M). GIII Monday reported $3.23 EPS for fiscal 2012, below expected $3.25. Piper Jaffray lowered its price target on the company from $46 to $45. Shares were trading under $34 midday.
Rick’s Cabaret (NASDAQ: RICK), owner and operator of numerous nightclubs across the U.S., was down almost 5% on five times normal trading. RICK has fallen steadily since May 17 and now trades below $8.