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Retail stocks rise; Office Depot gains, Avon tumbles
By William Spain, MarketWatch
Last Update: 10:30 AM ET Oct 29, 2009
CHICAGO (MarketWatch) -- Retail stocks followed the broader market higher Thursday, while Office Depot shares climbed after reporting quarterly results.
The S&P Retail Index $RLX, the sector's main indicator, rose 1.5% to 387.37.
Shares of Office Depot ODP added almost 3% to $6.08 after the company posted a wider third-quarter loss as charges and weak demand from consumers and small businesses dragged the retailer deeper into the red.
Office Depot lost $413 million, or $1.51 a share, compared to a loss of $6.7 million, or 2 cents a share, in the same quarter of 2008.
Excluding items, the office-supplies retailer said it would have lost 8 cents a share. Sales declined 17% to $3.03 billion from $3.66 billion as same-store sales - those at outlets open at least year - fell sharply in the U.S. and Canada.
Avon Products AVP shares fell almost 5% to $31.46 as the world's largest direct seller of beauty products said third-quarter profit fell 30%, hurt by restructuring costs and a stronger dollar that dented overseas sales.
It earned $156.2 million, or 36 cents a share, from $222.6 million, or 52 cents a share, a year ago. Total revenue declined 4% to $2.55 billion but would have increased 7% without the impact of currency translation.
Among some other retail issues, Wal-Mart WMT tacked on a nickel to $49.95 while Target TGT rose about 2% to $49.92 and Costco COST rose 1% to $57.14.
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