Consumer stocks were pointing higher this afternoon, with shares of consumer staples companies in the S&P 500 showing a more than 0.5% advance while shares of consumer discretionary firms in the S&P 500 were increasing nearly 0.5%.
In company news, Destination Maternity Corp (DEST) rose more than 11% on Thursday to a session high of $1.94 a share after the specialty retailer late Wednesday urged shareholders to vote in favor of its four-member slate of board nominees and to reject entreaties from French children’s clothing seller Orchesta-Premaman, which failed in an unsolicted buyout effort earlier this year and is now trying to force out those incumbent board members.
The company’s annual stockholders’ meeting is scheduled for Oct. 19. In a letter to shareholders, Destination Maternity management questioned Orchesta-Premaman’s motives, noting the one-time suitors have not recommended an alternative board slate and is instead only trying to oust the four members up for re-election this year.
“Removing Destination’s highly qualified directors, and creating an urgent need to identify, interview and recruit their replacements would inject unnecessary risk and uncertainty into the Company’s short and long-term prospects,” the executives wrote, later chiding Orchesta-Premaman for starting “a costly and distracting proxy fight that is devoid of any tangible, concrete recommendations on how to enhance Destination’s operations or maximize value for stockholders.”
In other sector news,
(+) NCLH, (+4.0%) Joining the S&P 500 index, effective next Friday, Oct. 13, replacing Level 3 Communications (LVLT), which is being acquired by CenturyLink (CTL), pending final approvals.
(-) NAVI, (-12.5%) Analysts at Compass Point lowers investment recommendation to Neutral from Buy.