First on our list of stocks to watch is Lululemon (LULU) where problems with its bottoms are leading to a change near the top. The company announced after hours yesterday that its chief product officer Sheree Waterson is leaving the company. Waterson took the fall for a recall of extra sheer pants that is expected to cost the company up to $40-million. Shares are down substantially since the problem with the pants became public, but in recent days they've begun a rebound.
Next up is a company known for intentionally racy clothing: Abercrombie and Fitch (ANF). It was the S&P 500's best performer yesterday climbing almost 4% even as the Dow sustained triple digit losses. Abercrombie rose on optimism about its international expansion plans and renewed focus on boosting profitability. The company plans to open several flagship Abercrombie stores in the far east. It also wants to open about 20-more Hollister stores overseas. Abercrombie hit its 52-week high last May. Even with yesterday's rise it's still trading more than 10% below that.
Now we look at Netflix (NFLX) which was the S&P 500's best performer in the first quarter, more than doubling, but shed nearly 4% yesterday. At first the fall was being pinned on a report that Carl Icahn had sold-off shares of the company-- something which he denies. But later it appeared traders were reacting to news that Time Warner (TXW) is starting its own streaming service which will dust-off the company's vast archives. By the way, Time Warner Shares were up nearly 1% on the day posting a new 52-week high.
Finally, Disney (DIS) is closing down LucasArts, the video game maker that's part of LucasFilm. The LucasArts website still boasts that a Star Wars 1313 video games is coming soon. But all the division's employees-- at least 150 of them-- have all been laid-off. Shares of Disney dipped last October, right around the time the company purchased LucasFilm for $4-billion, but they've been climbing ever since.