Investing.com - Pizza chain Papa John's slumped on Friday, adding further pressure on consumer discretionary stocks after it put a stake of itself up for sale after failing with M&A bids.
Papa John's International (NASDAQ:) said the buyout offers received from private equity firms did not match its valuation, Reuters reported, citing people familiar with the matter. Its shares fell 8%.
The update comes just a week after rumors swirled that former CEO John Schnatter, who owns 30% of the company, 3G Capital and Restaurant Brands were reportedly looking to join forces and make a buyout offer for the company.
The transaction, which reportedly could be structured as a private investment in public equity, would shore up Papa John’s finances, which were hurt by low franchisee profitability.
But as it stands, there is no certainty that any deal will be agreed.
A surge in Deckers Outdoors, meanwhile, did its part to lift the consumer discretionary sector, which had already come under pressure thanks to slump in Amazon (NASDAQ:).
Deckers Outdoor (NYSE:), best known for its UGG brand, posted earnings that beat estimates on both the top and bottom lines, sending its shares 12% higher.
The outerwear retailer earnings of $6.59 a share on $873.8 million in revenue, easily surpassing estimates for earnings of $5.30 a share on $819.63 million in revenue.
The company also delighted investor by launching an additional $261 million share buyback program, taking the total program to $350 million.
The index fell 1.4%.
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