By Andria Cheng, MarketWatch
NEW YORK (MarketWatch) -- Retail stocks were mixed on Friday as reports from Nike Inc. and other companies bolstered investor confidence in the ability of companies to grow profits next year.
The S&P Retail Index (RLX 404.94, -1.78, -0.44%) was little changed at 406.47. Blackberry maker Research In Motion Ltd. and business-software maker Oracle Corp. have also reported results that topped analysts' expectations. See full story on the markets.
Nike shares rose 2.1% after it posted better-than-expected second-quarter profit and its orders also rose more than analysts estimated. The Beaverton, Ore.-based company also said that it would continue to sponsor troubled golfer Tiger Woods. See full story on Nike.
Nike (NKE 64.78, +1.53, +2.42%) "continued to show resiliency despite a tough consumer environment," said Oppenheimer & Co. analyst Robert Samuels. "Tiger Woods scandal will have little impact on (Nike) as its golf business (at $650M) represents only 3% of sales and Tiger's apparel line is a small piece of the total. However, we expect to see a little less of Tiger on TV."
Wal-Mart Stores Inc. (WMT 52.59, -0.17, -0.32%) shares fell 0.5% after the world's largest retailer named Eduardo Solorzano, president and CEO of Walmart de Mexico, as head of Walmart Latin America.
Urban Outfitters Inc. (URBN 32.88, -0.45, -1.35%) fell 1%. The specialty retailer said its Chief Financial Officer John Kyees, 63, will retire, succeeded by Eric Artz, 42, on Feb. 1. Artz will join the company from VF Corp., where he has served as finance chief of VF's contemporary brands for two years.
Zale Corp. (ZLC 2.10, -0.43, -16.10%) shares tumbled 17% to $2.10. The Wall Street Journal reported the No. 2 jewelry retailer has cancelled some orders with suppliers as it struggles under the weight of mounting debt and sales declines. The company also said in a regulatory filing that its November sales at stores open at least a year tumbled 19%.
CarMax Inc. (KMX 22.75, +0.93, +4.26%) shares rose 5.2%. The No. 1 U.S. retailer of used cars said Friday it swung to a third-quarter profit of $74.6 million, or 33 cents a share, from a loss of $21.9 million, or 10 cents a share, a year ago. Sales and operating revenues in the quarter ended Nov. 30 rose to $1.73 billion from $1.46 billion. Comparable store used unit sales increased 8%. Analysts, on average, estimated CarMax would earn 16 cents a share on sales of $1.63 billion, according to FactSet.
