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Sears and Alcoa sell off; Abercrombie and Gap offer brighter outlooks

David Fazekas
Hot Stock Minute

Shares of Sears Holdings (SHLD) plummeted in early trading after the company reported disappointing same-store holiday sales at both its K-Mart and Sears locations. Sears sales saw a decline of 9.2% compared to last year and K-Mart sales slumped 5.7%. Sears Canada sales fell 4.4%. It's been a tough start to the new year for Sears Holdings as shares have fallen almost 10%.

Alcoa (AA) was also sharply lower in early trading after the company missed earnings expectations for the fourth quarter. Alcoa reported profits of 4-cents a share, missing estimates by 2-cents. Revenue came in 5% lower than last year at $5.59 billion, but beat estimates of $5.34 billion. Alcoa also reached a $384 million dollar settlement with the Securities and Exchange Commission and the Department of Justice over charges of bribing officials in Bahrain. Alcoa shares are up just over 19% in the past year.

Abercrombie & Fitch (ANF) fared better, soaring more than 14% in early trading. Like many retailers, Abercrombie's holiday sales declined from the previous year. The company saw comparable store sales fall 6%, but that didn't seem to bother investors because experts were expecting much worse numbers. Abercrombie also raised its per-share adjusted earnings outlook for the year to a range of $1.55 to $1.65 from $1.40 to $1.50. It's been a tough 12-months for Abercrombie, with shares down more than 31% in that time.

And Gap (GPS) reported same-store holiday sales were flat in December. Analysts were expecting a 1.5% increase. Gap also said that it expects to come in at the high end of its projected full-year earnings guidance range of $2.57 to $2.65. Shares of Gap are up almost 26% in the past year.