Why Dollar Tree, Abercrombie & Fitch, and The Michaels Companies Jumped Today

The stock market seemed directionless on Thursday, continuing the malaise seen in the previous session. Investors were concerned about lawmakers' ability to raise the debt ceiling ahead of a coming deadline, as well as the Trump administration's prospects for advancing its policy initiatives. Yet even as major benchmarks failed to move far from breakeven, some stocks still managed to post solid gains. Dollar Tree, Inc. (NASDAQ: DLTR), Abercrombie & Fitch Co. (NYSE: ANF), and The Michaels Companies, Inc. (NASDAQ: MIK) were among the best performers on the day. Below, we'll look more closely at these stocks to tell you why they did so well.

Shares of Dollar Tree rose 5.6% after the company announced financial results that exceeded investors' expectations. The dollar-store retailer reported sales grew 5.7% over the prior-year period, led by same-store sales that improved 3.9% at its Dollar Tree-branded stores, and a 1% increase at Family Dollar locations. Progress in cost-cutting measures contributed to a 36.1% jump in profits.

CEO Bob Sasser commented on the quarter: "Both Dollar Tree and Family Dollar produced positive same-store sales, our enterprise operating margin improved 80 basis points and earnings per share exceeded the high end of our guidance range. Consumers continue to view Dollar Tree and Family Dollar as stores that provide great value and convenience." The results seemed to temporarily allay investors' fears about the ongoing challenges in the retail environment.

Source: Fool.com