Men’s Wearhouse jumped 25% to $43.92 after Jos. A. Bank said it’s seeking to buy the apparel retailer for $2.3 billion in cash, or $48 a share. Men’s Wearhouse rejected the takeover offer, saying the bid “significantly” undervalued the company and wasn’t in the best interest of shareholders. Jos. A. Bank rose 7.,8% to $44.90.
J.C. Penney Co. rose 1.7% to $7.91. The company named Saks Inc. Chief Executive Officer Stephen Sadove to its board, bringing in a luxury retail executive to help the department-store chain as it attempts a turnaround.
Yum retreated 8.5% to $65.20 as the owner of the KFC fast-food chain also cut its 2013 earnings forecast. Third- quarter net income decreased to $152 million, or 33 cents a share, from $471 million, or $1, a year earlier, the Louisville, Kentucky-based company said. Excluding certain items, profit was 85 cents a share. Analysts had projected 92 cents, the average of 23 estimates compiled by Bloomberg.
Costco fell 1.6% to $110.46. The largest U.S. warehouse-club chain reported fourth-quarter profit that missed analysts’ estimates, as revenue climbed at a slower pace. Net income in the quarter ended Sept. 1 rose to $617 million, or $1.40 a share, from $609 million, or $1.39, a year earlier, the company said. Analysts projected profit of $1.46, the average of 13 estimates compiled by Bloomberg.
Family Dollar Stores Inc. dropped 2% to $68.05. The discount retailer issued a forecast for fiscal 2014 profit that fell short of estimates and reported fourth-quarter revenues and same-store sales that missed forecasts.
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