Thursday was a strong day on Wall Street, as major indexes climbed dramatically on a more favorable outlook for reconciliation of trade disputes. China chose not to escalate tensions further, backing off possible retaliatory measures following a brief volley between it and the U.S. over the past few days. Moreover, retail earnings played a key role in boosting investor sentiment. Guess? (NYSE: GES), Burlington Stores (NYSE: BURL), and Shoe Carnival (NASDAQ: SCVL) were among the top performers. Here's why they did so well.
Shares of Guess? rocketed nearly 21% higher after the jeans maker reported solid results for its second quarter. Revenue was up almost 6% from the previous year's period, with particularly good performance in the European market. Wholesale business in the Americas segment was also robust, helping to offset more tepid performance in Asia and in the Americas retail business. Although adjusted net income fell year over year, Guess? called out the good prospects for its direct-to-consumer business in boosting full-year guidance. If the holidays go well, Guess? hopes to make up for what's thus far been a poor 2019.
Image source: Guess?