A&F, JC Penney, Target: US stocks in the spotlight

Abercrombie & Fitch rallied Wednesday in New York, adding 9 percent

on company's fourth-quarter profit that exceeded expectations. Additionally, the teen apparel retailer advanced it will accelerate a share buyback programme.

Profits at the group - which also owns the Hollister brand - more than halved in the quarter, coming in at 66.1 million dollars or 85 cents per diluted share. When adjusting for charges, including the closing of its Gilly Hicks lingerie brand and its cost-cutting programme, Abercrombie said it earned 1.34 dollars per share, ahead of Wall Street forecasts, reported 'Wall Street Journal'.

Same-store sales declined 8 percent in the three months to February, to some extent above expectations of an 8.8 percent fall. The stock closed the session upwards, at 40.04 dollars apiece.

"We are in a different environment in terms of price resistance," chief executive Michael Jeffries said on a call with analysts. "Clearly, it's an old axiomatic statement that good fashion doesn't have a price attached to it but today it does." Abercrombie expects same-store sales at its stores to decline by a "high-single digit" percent over the remainder of the year, although overall sales are to be buoyed by a 20 percent increase in online orders.

Elsewhere, Target Corporation reported fourth quarter net earnings of 520 million dollars, or 0.81 dollars per share. Full-year net earnings were of 1,971 million dollars, or 3.07 dollars per share.

Two months after it happened, the retailer is still paying the consequences of the hackers' attack that resulted in stolen credit card numbers and personal data of millions of its customers: Target's sales, profit and stock prices have plunged.

On Wednesday, Target said it expects business to be subdued for some time, though it said sales are recovering since the breach was disclosed in mid-December. Adjusted earnings per share were 1.30 dollars in fourth quarter 2013, down 21.2 percent from 1.65 dollars a year earlier. Full-year 2013 adjusted earnings per share (EPS) are expected come in at 4.38 dollars, shredding 8 percent year-on-year.

Target's full-year 2013 Adjusted earnings per share of 4.38 dollars reflect disciplined inventory and expense management despite softer-than-expected US sales, highlighted analysts that follow the stock. It is noteworthy that in 2013, the group returned 2.5 billion dollars to shareholders through dividends and share repurchase, representing more than 125 percent of net earnings.

Finally, JC Penney CEO Mike Ullman tried to calm the waters, reassuring investors in regards to the concerns about ongoing cash needs while delivering better-than-expected results on Wednesday. "Penney is on a path to recovery," he told analysts after reporting a smaller-than- expected fourth-quarter loss and a profit when one-time benefits are added in.