Shares in footwear retailer RCG Corporation Ltd (ASX: RCG) are up 4% to 80 cents today and up 30% over the past two months despite the company releasing no price sensitive news to the market.
Back in June the stock sold for as little as 59 cents after petrified investors dumped the stock over news headlines around Amazon entering Australia and soft retail spending growth on the back of flat wages growth.
RCG is the business behind popular footwear brands like The Athlete's Foot and Hype DC and is due to hand in its full year profit result within two weeks. In May it blamed weak consumer spending over March and April for a downgrade to its profit guidance and it now expects full year underlying EBITDA to come in between $74 million to $80 million.
Given this guidance was provided just two months before the end of the financial year it's unlikely to miss it, with many investors likely looking to any guidance it will give as to performance in FY 2018.
The stock boasts a trailing fully franked dividend yield of 7.5% and trades on 13x trailing earnings per share.
