Stocks climbed through most of the trading session on Friday to end the day near session highs. The Dow Jones Industrial Average (DJINDICES: ^DJI) gained 46 points, or 0.3%, as the broader S&P 500 (SNPINDEX: ^GSPC) added 10 points, or 0.5%, to set a new record.
Chipotle (NYSE: CMG) and Skechers (NYSE: SKX) were among the market's biggest movers as investors digested fresh data on their latest operating trends.
Chipotle returns to profitability
Chipotle shares spiked 6% higher after the burrito chain posted a return to profits even as customer traffic levels continued to slump. Net income dove by 80% to $26 million this quarter, but that still marked a welcome turnaround from Q1, when CMG revealed its first (and investors hope, last) quarterly loss as a public company.
Image source: Getty Images.
Sketchers' U.S. wholesale business declined, swinging from a 12% boost in Q1 to a 5% drop this quarter. Management said most of this drop had to do with a timing issue that pulled sales from the second quarter into the first quarter. Looking at the past six months in aggregate, where overall revenue improved by 18%, paints a more accurate picture of business trends, they explained.
Meanwhile, the company's international expansion has executives' attention right now. Skechers plans to operate 1,600 retail locations by the end of the year, with new markets like Belgium, Norway, and Finland helping push the international portion of that total to more than 1,100.
Investors were still spooked by the growth slowdown, especially since it came with a disappointing sales forecast from management. "As international becomes a larger piece of our total business, we believe there is upside opportunity" for Q3, Chief Financial Officer David Weinberg said in a press release, while targeting roughly $970 million of sales. That outlook was below consensus estimates forecasting $1 billion of revenue in the quarter.
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Demitrios Kalogeropoulos owns shares of Chipotle Mexican Grill. The Motley Fool owns shares of and recommends Chipotle Mexican Grill and Skechers. Try any of our Foolish newsletter services free for 30 days . We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
