Why Duluth Holdings, Argan, and LendingClub Slumped Today

Wall Street had a good session on Thursday, as the Dow Jones Industrials and other major benchmarks all managed to see gains of as much as half a percent. Overall comfort with the status of the U.S. economy helped make most investors optimistic about the prospects for stocks, and continued froth in the bitcoin market made the gains that stocks have posted in recent years look modest by comparison. Still, some companies suffered bad news that sent their shares lower, and Duluth Holdings (NASDAQ: DLTH), Argan (NYSE: AGX), and LendingClub (NYSE: LC) were among the worst performers on the day. Below, we'll look more closely at these stocks to tell you why they did so poorly.

Shares of Duluth Holdings dropped 17% after the company released its third-quarter financial results. The workwear and accessories retailer said that revenue for the quarter climbed 25%. Yet rising costs associated in part with the expansion of the company's retail store base led to higher overall operating expenses and contributed to a net loss for the quarter. The transformation in Duluth's business has been impressive, with retail store revenue doubling from year-ago levels and making the company much more balanced between direct-to-consumer and brick-and-mortar operations. Yet investors want to see greater profits, and until Duluth provides them, the stock could remain under pressure.

Image source: Duluth Holdings.

Source: Fool.com