Diamonds and Dogs
A miracle on 34th Street. Macy's (M) is up 7% thanks to a strong sales in the holiday season and upbeat outlook for 2018. Macy's and other department stores are revamping their businesses, from closing poorly performing stores to changing their product lineups to expanding their online services. Macy's is still losing market share in key areas like clothing and home furnishings while longer term Amazon and online business remains a huge threat to Macys box retail stores.
Fitbit (FIT) a little out of shape. The Fitbit watch maker is down 12% to fresh all-time lows on disappointing earnings. Revenue fell 0.5% to $570.8 million, missing consensus estimates by $18.09 million. With growing competition from Apple's Watch 3 and Garmin's Fenix 5, Fitbit lowered full year expectations. Management projects limited revenue from new production introduction with first quarter guidance of $240 to $225 million, missing consensus forecasts calling for $340.3 million and a projected net loss of 21 cents to 18 cents per share versus consensus forecasts calling for a loss of nine cents per share.