BOOM! Why the OrotonGroup Limited share price soared 27% today

The local share market is enjoying a return to form today, but few shares are rising as strongly as OrotonGroup Limited (ASX: ORL). The handbag and fashion accessory retailer’s share price has surged 27.3% higher today to trade at $2.61.

The shares are still trading 8.4% below the highs they achieved late last year and are a long way off the levels around $9.50 achieved early in 2014, but shareholders will at least be relieved that they’ve rebounded from their low of $2.01 last month.

Source: Yahoo! Finance

Source: Yahoo! Finance

Notably, shares of Myer Holdings Limited (ASX: MYR) have also soared 12.7% today to $1.24. The gains for both companies came after they released their half-year earnings results to the market.

Myer’s report was upbeat, including comparable store sales growth of 7.1% across 12 Victorian and New South Wales Flagship and Premium stores, while OrotonGroup lifted its net profit by 73% to $3.8 million during the half.

That’s a lot better than what some analysts were expecting and could well explain the soaring share price today.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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