Call it the curse of the GOP? CNNMoney did a piece last week noting how Republican presidential candidate Mitt Romney and his running mate Paul Ryan have been both photographed wearing North Face jackets on the campaign trail.
But even though these heroes of the red states seemed to be endorsing the comfort of The North Face's fleece, investors in North Face's parent company were seeing red after disappointing sales.
VF Corp. (VFC), which owns The North Face as well as the Timberland boots brand and Lee and Wrangler jeans, sank as much as 7% Monday morning following its earnings report. The stock was down about 4% in late morning trading.
Although VF's profits were better than expected, investors seemed spooked by the fact that revenues missed estimates by a tiny margin.
Shares of Ralph Lauren and PVH both dipped Monday as well.
But one trader pointed out that it wasn't all doom and gloom for VF. The company raised its dividend and did report solid gains in its footwear unit.
Good point. And when you look closely at VF's report, the company also did raise its outlook for the year. So perhaps the stock was falling Monday because expectations were unreasonably high, and not because of concerns about fundamentals. After all, VF Corp. has been a phenomenal stock as of late. Shares are up more than 26% in 2012.
But traders also debated the quality of VF's guidance, with one trader noting that the outlook isn't that great after all when you factor our currency fluctuations.
BrianSozzi: Strip out currency outlook change and include beat, $VFC guidance raise not really a raise #riskStill, another trader noted that in this market, merely meeting estimates should be rewarded.
Finally, VF Corp. may be getting hurt by the problems on a certain debt-laden continent. That's going to be an issue for many consumer companies over the next few months.
Maybe Angela Merkel, Antonis Samaras and Mariano Rajoy need to start wearing more Wrangler jeans, Timberland boots and North Face sweatshirts.
The Paul Ryan stock portfolio continues to shine. Two stocks that the Republican vice presidential candidate owns - Home Depot (HD) and Estee Lauder (EL) -- spiked Tuesday after both companies reported better-than-expected quarterly results.
As of mid-morning Home Depot was up 3%, making it the best performer in the Dow. And Estee Lauder's shares shot nearly 8% higher, making them the top gainer in the S&P 500.
Ryan seems to have MOREMaureen Farrell - Aug 14, 2012 10:37 AM ET
The world's largest bond investor took to Twitter Monday to air his gripes about Paul Ryan, the newly chosen Republican vice presidential candidate.
GROSS: Do bond markets take heart from Ryan selection? Not me. He talks lower deficits but really believes in lower taxes – exact opposite.
— PIMCO (@PIMCO) August 13, 2012
The comments from Bill Gross, founder of investing firm Pimco, show the challenges that Ryan may face when trying to convince MOREHibah Yousuf - Aug 13, 2012 3:58 PM ET
Newly chosen vice presidential candidate Paul Ryan is already well-known for trying to push the U.S. government to cut its way to prosperity. Perhaps he should share some of his stock picks with Uncle Sam in order to boost revenue as well.
Ryan appears to be a savvy investor. The majority of the mostly large-cap stocks he owned in 2011 are on a tear in 2012. According to Ryan's 2011 financial MOREMaureen Farrell - Aug 13, 2012 12:49 PM ET
|Ex-CIA boss amazed Trump doesn't believe Russia hacked US election|
|Carrier to ultimately cut some of jobs Trump saved|
|Muhtar Kent will step down as CEO of Coca-Cola|
|Trump & Boeing: It's not about Air Force One, it's about China|
|Millennials don't think a Trump presidency will affect their wallets. But they should|