BloggingStocks

Collective Brands walks all over expectations, but I'm ignoring it

Steven Mallas — 2008-06-04T17:25:00+00:00

Filed under: Earnings reports, Wal-Mart (WMT), Kohl's Corp (KSS)

Collective Brands (NYSE: PSS), operator of Payless ShoeSource and owner of the Stride Rite brand, reported Q1 earnings on Wednesday. Revenues increased 28% to $932 million. Pretty cool increase. Adjusting earnings per share for a litigation charge and an inventory issue, net income came in at $0.71 per share versus the $0.59 per share booked a year ago.

That's decent growth, but there are a couple things to consider here. First, the top line wasn't fully organic, as it includes the Stride Rite acquisition (remember that Payless ShoeSource bought out Stride Rite and became Collective Brands). Second, same-store sales did not confirm any sort of underlying healthy trend. Comps declined a nasty 6.5%. So, even though earnings expectations were beat by a wide margin according to MarketWatch (analysts seemed to think the shoe concern would do about $0.56 per share), I'm not fully impressed.

And let's go back to that litigation thing. The earnings release discusses the risk involved with an unfavorable ruling vis-a-vis the retailer's battle with Adidas. That's another strike against the company for me. From a price-action perspective, Collective Brands' stock has been rather weak as of late, and it currently sits much closer to the 52-week low than it does to the 52-week high.

I see no reason to think of Collective Brands as an investment. The economic slowdown will lead to increased competition, and the litigation surrounding this entity is not attractive at all. Consumers have a lot of choices for shoe purchases, they can go to Wal-Mart (NYSE: WMT), Kohl's (NYSE: KSS), Foot Locker (NYSE: FL) and other places. Actually, I use Payless exclusively for my footwear needs. I will not, however, use the company for my investment portfolio.

Disclosure: I don't own any of the companies mentioned here; positions can change at any time.

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Earnings highlights: Deere, Freddie Mac, Applied Materials, Barclay's and others

Trey Thoelcke — 2008-05-17T16:10:00+00:00

Filed under: Earnings reports, Home Depot (HD), Penney (J.C.) (JCP), Applied Materials (AMAT), Amer Intl Group (AIG), Lowe's Cos (LOW), Kohl's Corp (KSS), Toll Brothers (TOL), Deere and Co (DE), Barclays plc ADS (BCS), MBIA Inc (MBI)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Applied Materials Inc. (NASDAQ: AMAT) Q2 profits declined on a glut of flash memory chips.
Bally Technologies Inc. (NYSE: BYI) beat Q3 expectations and offered full-year guidance.
Barclay's (NYSE: BCS) reported a big Q1 loss on credit-related write-downs.
Constant Contact Inc. (NASDAQ: CTCT) saw big increases in Q1 revenues and in its customer base.
Deere & Co. (NYSE: DE) Q2 profits rose on international demand, but results just missed estimates.
Fluor Corp.'s (NYSE: FLR) strong Q1 results are a signal for the energy sector, says Jim Cramer.
Freddie Mac (NYSE: FRE) Q1 loss widened on the housing slump, but not as much as forecast.
IndyMac Bancorp Inc. (NYSE: IMB) narrowed its loss but predicted it wouldn't see a profit in 2008.
LDK Solar Co. Ltd. (NYSE: LDK) Q1 earnings topped forecasts and it raised its outlook.
MBIA Inc. (NYSE: MBI) reported a larger-than-expected Q1 loss due to write-downs.
Mindray Medical International Ltd. (NYSE: MR) beat Q1 expectations and raised its full-year guidance.
Nuance Communications Inc. (NASDAQ: NUAN) Q2 earnings were in line with analysts' expectations.
ON Semiconductor Corp. (NASDAQ: ONNN) beat Q1 expectations and raised its Q2 revenue forecast.
RealNetworks Inc. (NASDAQ: RNWK) beat Q1 estimates and announced share buybacks and a spin off.
Salary.com Inc. (NASDAQ: SLRY) missed Q1 forecasts, leading to analysts' downgrades.
Sykes Enterprises Inc. (NASDAQ: SYKE) beat Q1 estimates and raised its Q2 and full-year forecast.
Syniverse Holdings Inc. (NYSE: SVR) beat Q1 expectations on strength in "messaging and mobil data."
Toll Brothers Inc. (NYSE: TOL) warned of lower Q2 profits and more "challenging times" ahead.
Website Pros Inc. (NASDAQ: WSPI) reported flat earnings despite soaring revenues and operating income.

Also, after AIG's (NYSE: AIG) dismal results, International Lease Finance Corp. wants to be spun off from its parent. Analysts see JC Penney Inc. (NYSE: JCP), Kohl's Corp. (NYSE: KSS) and the rest of the retail sector rebounding in the latter half of the year. Jim Cramer ponders some suprising responses to so-so earnings reports, and looks ahead to Lowe's (NYSE: LOW) and Home Depot (NYSE: HD) as a sign for the housing sector.

Other upcoming results to watch for include Campbell Soup (NYSE: CPB), Autozone (NYSE: AZO), Hewlett-Packard (NYSE: HPQ), Intuit (NASDAQ: INTU), Staples (NASDAQ: SPLS), Target (NYSE: TGT), Limited Brands (NYSE: LTD) The Gap (NYSE: GPS) and Barnes & Noble (NYSE: BKS).

Visit AOL Money & Finance for more earnings coverage.

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Earnings highlights: Wal-Mart, Macy's, Sony, Sprint, Sirius, Whole Foods and others

Trey Thoelcke — 2008-05-17T09:40:00+00:00

Filed under: Earnings reports, Wal-Mart (WMT), Home Depot (HD), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Sprint Nextel Corp (S), Sony Corp ADR (SNE), Penney (J.C.) (JCP), Blockbuster Inc 'A' (BBI), Whole Foods Market (WFMI), Tiffany and Co (TIF), Amer Intl Group (AIG), Lowe's Cos (LOW), Kohl's Corp (KSS), Electronic Arts (ERTS), Nordstrom, Inc (JWN), Liz Claiborne (LIZ), Nissan Motors (NSANY)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

AnnTaylor Stores Corp. (NYSE: ANN) sees Q1 profits beating estimates but reaffirmed the full-year outlook.
Blockbuster Inc. (NYSE: BBI) beat Q1 earnings expectations but fell short of revenue estimates.
Electronic Arts Inc. (NASDAQ: ERTS) posted strong Q4 and full-year results on titles such as Rock Band.
Fossil Inc. (NASDAQ: FOSL) forecast Q1 earnings just a penny below analysts' estimates.
IMAX Corp. (NASDAQ: IMAX) doubled its Q1 loss and missed Wall Street's expectations.
JC Penney Co. Inc. (NYSE: JCP) profits fell 50%, and it predicted trouble would continue through the year.
Kohl's Corp. (NYSE: KSS) posted a smaller-than-estimated Q1 profit decline and cut its full-year outlook.
Liz Claiborne Inc. (NYSE: LIZ) swung to a Q1 loss on restructuring but beat analysts' expectations.
Lumber Liquidators Inc. (NYSE: LL) posted strong Q1 results despite the housing slump.
Macy's (NYSE: M) beat low Q1 expectations despite weak same-store sales.
Nissan Motor Corp. (NASDAQ: NSANY) Q4 profit surged but it warned of lower profits this year.
Nordstrom Inc. (NYSE: JWN) posted smaller-than-estimated Q1 profit decline and cut its full-year outlook.
Priceline.com Inc. (NASDAQ: PCLN) beat Q1 expectations due to increased bookings.
Sirius Satellite Radio Inc. (NASDAQ: SIRI) posted a narrower Q1 loss in line with expectations.
Sony Corp. (NYSE: SNE) swung to a Q4 profit but fell short of Wall Street estimates.
Sprint Nextel Corp. (NYSE: S) beat low Q1 estimates as its loss widened on charges and lost subscribers.
Tiffany & Co. (NYSE: TIF) projected beating Q1 earnings forecasts and raised its dividend.
Wal-Mart Stores Inc. (NYSE: WMT) posted Q1 profits up on international growth and bargain shoppers.
Whole Foods Market Inc. (NASDAQ: WFMI) Q2 profits fell due to the Wild Oats acquistion.
XM Satellite Radio (NASDAQ: XMSR) reported a bigger-than-expected Q1 loss and a surge in subscribers.

Also, after AIG's (NYSE: AIG) dismal results, International Lease Finance Corp. wants to be spun off from its parent. Analysts see JC Penney, Kohl's and the rest of the retail sector rebounding in the latter half of the year. Jim Cramer ponders some suprising responses to so-so earnings reports, and looks ahead to Lowe's (NYSE: LOW) and Home Depot (NYSE: HD) as a sign for the housing sector.

Visit AOL Money & Finance for more earnings coverage.

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Nordstrom and Kohl's post smaller-than-expected Q1 profit declines

Trey Thoelcke — 2008-05-16T15:15:00+00:00

Filed under: Earnings reports, Kohl's Corp (KSS), Nordstrom, Inc (JWN)

On Thursday, Nordstrom Inc. (NYSE: JWN) and Kohl's Corp. (NYSE: KSS) both reported smaller-than-expected first-quarter profit declines as consumers continued to pull back their spending.

Luxury retailer Nordstrom said its profit fell 24% from the same quarter of last year to $119 million, or 54 cents per share. Revenue fell 4% from a year ago to $1.88 billion. Analysts surveyed by Thomson Financial had predicted Nordstrom would earn 49 cents per share on sales of $1.9 billion.

The company said same-store sales fell 6.5% for the quarter, below the expected 3% to 5% drop. The retailer said it expects same-store sales to fall 5% to 7% in the quarter, and 4% to 6% in the year.

For the current quarter, Nordstrom forecast a profit of 65 to 70 cents per share; analysts' forecast earnings of 69 cents per share. For the full year, Nordstrom cut its earnings outlook to $2.65 to $2.89 per share, from an earlier forecast for $2.75 to $2.90 per share. Analysts predict earnings of $2.76 per share.

By mid day Friday, shares of Nordstrom had gained $1.35, or 3.5%, from the open on Thursday. Shares have fallen 28.7% in the past year.

The Menomonee Falls, Wis.-based Kohl's department store chain said it earned $153 million, or 49 cents per share, during the quarter that ended May 3. That's down nearly 27% from the same period a year ago. Analysts surveyed by Thomson Financial, on average, expected earnings of 44 cents per share.

Sales rose 1.5% in the quarter to $3.6 billion, in line with analysts' estimates. However, same-store sales fell 6.7%.

Kohl's predicted earnings for the year would fall to a range of $2.95 to $3.15, compared to previously forecast earnings per share of $3.15 to $3.50. For the second quarter, Kohl's expects earnings per share to fall in a range of 70 cents to 74 cents, in line with analysts' expectations.

Shares of Kohl's fell to $49.50 in after-hours trading Thursday, and by mid day Friday had slipped to $48.30. Shares have fallen 32.9% in the past year.

Visit AOL Money & Finance for more earnings coverage.

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Analyst downgrades: Department store sector, SNDK and CNET

Eric Buscemi — 2008-05-16T11:38:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, Penney (J.C.) (JCP), Regions Financial (RF), Kohl's Corp (KSS), Nordstrom, Inc (JWN), SanDisk Corp (SNDK)

MOST NOTEWORTHY: The Department store sector, SanDisk and CNET Networks were today's noteworthy downgrades:

Goldman downgraded the department store sector to Neutral from Attractive after raising its 2008 oil forecast to $149 from $115, as it believes higher gas prices will impact consumer discretionary spend and sentiment. Goldman downgraded JC Penney (NYSE: JCP) and Nordstrom (NYSE: JWN) to Neutral and also removed Kohl's (NYSE: KSS) from its Conviction Buy List.
JMP Securities downgraded SanDisk (NASDAQ: SNDK) to Underperform from Market Perform based on increased competition in NAND, a potential decline in royalty income, valuation, and lack of catalysts from flash-based solid state drives.
CNET Networks (NASDAQ: CNET) was cut to Neutral from Buy at Banc of America following the tender offer from CBS (NYSE: CBS).

OTHER DOWNGRADES:

Merrill downgraded Regions Financial (NYSE: RF) to Sell from Neutral.
B. Riley downgraded Exar (NASDAQ: EXAR) to Neutral from Buy.
Albermarle (NYSE: ALB) was lowered to Neutral from Overweight at JP Morgan.

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Before the bell: JCP, WMT, AAPL, GM, GOOG, MSFT ...

Melly Alazraki — 2008-05-16T08:14:00+00:00

Filed under: Before the bell, Analyst reports, Analyst upgrades and downgrades, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Wal-Mart (WMT), General Motors (GM), Toyota Motor Corp. (TM), Penney (J.C.) (JCP), Kohl's Corp (KSS), Nordstrom, Inc (JWN)

Before the bell: Futures higher ahead of housing data

Goldman Sachs cut its view of U.S. department stores to Neutral from Attractive. Specifically, the broker downgraded J.C. Penney (NYSE: JCP) and Nordstrom Inc. (NYSE: JWN) to Neutral from Buy after its commodity team upped 2008 oil price forecasts to $149 a barrel.
Still, Goldman upgraded TJX Cos. (NYSE: TJX) to Buy from Neutral and removed Kohl's Corp. (NYSE: KSS) from its conviction-buy list in favor of Wal-Mart Stores Inc. (NYSE: WMT).

By now I'm getting confused with all the deals Apple Inc. (NASDAQ: AAPL) is signing with wireless operators to sell the iPhone in different countries around the world. I believe the past two weeks we heard of at least two deals, including one with a S.Korean company. Today, French wireless operator Orange said it has signed a deal to sell its iPhone in the Middle East, Africa and several European countries. Orange will be the exclusive iPhone provider in Belgium and Romania. It seems that by now Apple's got the world covered.

General Motors Corp. (NYSE: GM) is apparently considering launching its Chevrolet brand in South Korea. In its attempt to stay ahead of fast growing Toyota (NYSE: TM), GM will try to capture a larger share of S.Korea's growing market for imported cars.

As Yahoo! (NASDAQ: YHOO) is trying to keep Icahn off its board back, it keeps talking about a search advertising partnership with Google Inc (NASDAQ: GOOG), according to a Reuters source.

And Microsoft (NASDAQ: MSFT) also keeps to other business these times. The software giant joined The One Laptop Per Child project as the green-and-white "XO" computers now can run Windows in addition to their homegrown Linux-based interface. This could further the cause of the organization.

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Before the bell: Futures higher ahead of housing data

Melly Alazraki — 2008-05-16T07:35:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), Market matters, Kohl's Corp (KSS), Abercrombie and Fitch (ANF), Economic data, Nordstrom, Inc (JWN), Housing

U.S. stock futures were higher this morning, looking to extend their rally, even though investors will likely not like the upcoming housing data, which probably isn't going to signal a bottom for the housing recession.

U.S. stocks had a nice rally Thursday as oil prices fell, several deals were announced, mainly CBS buying CNet, and Icahn moving forward with his proxy fight for Yahoo's board. The Dow industrials rose 94 points, or 0.73%, the S&P 500 added 14 points, or 1.06%, and the Nasdaq Composite rose 37 points, or 1.48%. Thursday marked the fourth day of gains for the Nasdaq.

This morning, investors will be waiting for the housing data to roll in. Housing starts and building permits figures for April will be reported at 8:30 a.m. EDT. Both are expected to show further declines.
Also at 10:00 a.m. EDT, May University of Michigan's consumer confidence gauge for May is due. Economists expect it to decline marginally.

Meanwhile, Goldman Sachs helped lift oil prices this morning after it raised its forecast for oil to $141 a barrel. The forecast was raised 32% from $107 a barrel and is for the second half of 2008. Oil prices were back above $125 a barrel.

Yahoo! (NASDAQ: YHOO) will continue to be in the spot light after it responded late Thursday to Icahn's nomination of board members. Billionaire investor Carl Icahn is trying to gain control of the internet company's board so it could resume takeover talks with Microsoft (NASDAQ: MSFT). In response, Yahoo! said it would fight Icahn's attempts.

Abercrombie & Fitch (NYSE: ANF) is due to report quarterly results. Other retailers in focus this morning are Kohl's Corp. (NYSE: KSS) and Nordstrom (NYSE: JWN). Both reported after the close Thursday, posting double- digit declines in fiscal first-quarter net income and cut their earnings forecasts for the fiscal year.

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Before the bell: Futures higher as investors await data

Melly Alazraki — 2008-05-15T07:37:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), General Electric (GE), Market matters, Penney (J.C.) (JCP), Blockbuster Inc 'A' (BBI), Kohl's Corp (KSS), Economic data, Nordstrom, Inc (JWN), Blackstone Group L.P (BX)

U.S. stock futures were marginally higher early Thursday morning as once again investors await data on the economy to give them direction. Several deals and earnings are also in the spot light this morning.

U.S. stocks received a boost Wednesday from lower-than expected inflation numbers, given extra credence by the fall in crude-oil prices. While most companies reporting earnings Wednesday didn't proved good news, a smaller-than-forecast loss for Freddie Mac helped lift sentiment. The Dow industrials rose 66 points, or 0.52%, the S&P 500 rose 6 points, or 0.40%, and the Nasdaq Composite edged up more than a point, or 0.06%.

This morning, more inflation data is due out. Consumer level inflation reported Wednesday managed to surprise the Street, but can the economic releases today do the same?
At 8:30 a.m., weekly initial jobless claims will be released, as well as May NY Empire State Index.
At 9:00 a.m., March Net Foreign Purchases will be reported to be followed some time later with April capacity utilization and industrial production.
At 10:00 a.m., after the market opens, the Philadelphia Fed index is due and is expected to show another decline.
Finally, a housing index is also due today.

Meanwhile, despite recent signs of a global slowdown, in Europe, economic growth accelerated more than forecast in the first quarter thanks to the strongest German expansion in 12 years. This data would seem to support the European Central Bank more hawkish stance and its decision to keep rates unchanged in an attempt to stall inflation, which Trichet, the ECB president, more than once mentioned as a global risk.

On the corporate side, The Wall Street Journal reported late Wednesday that General Electric (NYSE: GE) plans to sell its appliance division for between $5 billion and $8 billion

Meanwhile, billionaire activist investor Carl Icahn decided to try and overtake Yahoo Inc. (NASDAQ: YHOO)'s board, to at least scare it into action and revive negotiations with Microsoft Corp. (NASDAQ: MSFT). Icahn has lined up a slate of 10 directors to nominate as replacements.

Among companies reporting today are Blackstone Group (NYSE: BX), Blockbuster (NYSE: BBI) and several retailers: Nordstrom (NYSE: JWN), Kohl's Corp. (NYSE: KSS) and J.C. Penney (NYSE: JCP).

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Second half may bring a recovery for JCP, KSS

Eliza Popescu — 2008-05-12T15:33:00+00:00

Filed under: Forecasts, Consumer experience, Penney (J.C.) (JCP), Kohl's Corp (KSS), Economic data, Housing, Federal Reserve, Recession

I know that what you probably wanted to hear most is that the economy's slowdown is at an end so that some of your beaten-down stocks could enjoy a nice recovery. When the stock markets started declining towards the end of last year, SmartMoney tells us that analysts began to place bets on when we might see stocks rebound. Back then, many fund managers had expected a rally in the second half of 2008.

The Federal Reserve's decision to slash interest rates several times certainly gave a temporary boost to stocks -- not enough for a long-term rally, though. Daily concerns such as the deep housing slump and the rising inflation today give the impression that a second-half comeback is but a dream; it that would be quite hard to accomplish.

While analysts on Wall Street mostly believe a long-term rally is not too realistic now, they believe a moderate boost, stemming from the Fed's rate cuts and the $117 billion in tax rebates going into banks' accounts, is likely. On the other hand, looking at corporate profits, Citigroup analysts believe that predictions related to stocks' earnings figures are too high when taking the challenging market conditions into account.

There is some good news, though. Citi analysts said they see one sector outperforming: retailing. Retailers have a good chance to overcome the weak economy, they say, helped in part by the tax-rebate checks. They picked J.C. Penney Inc. (NYSE: JCP) and Kohl's Corp. (NYSE: KSS) as they have already slashed their first-quarter earnings estimates so that "the bad news is priced in."

But, despite all of this, analysts agree that the economy is still in bad shape. April's Federal Reserve Beige Book report was quite disappointing, showing an economy in worse shape compared with the beginning of the year. This was the result of continued concerns about consumer spending, soft labor markets and soaring prices for food and energy.

But don't be too scared. Only a few analysts expect times to get too much worse. So there still is a chance to see a recovery faster than expected.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

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Earnings expectations for JC Penney, Nordstrom, Macy's, Abercrombie and others

Trey Thoelcke — 2008-05-10T13:40:00+00:00

Filed under: Earnings reports, Forecasts, Wal-Mart (WMT), Penney (J.C.) (JCP), Kohl's Corp (KSS), Abercrombie and Fitch (ANF), Nordstrom, Inc (JWN), Urban Outfitters (URBN)

The earnings season continues to roll on, and next week's results offer a peek at the state of fashion retailing, as a variety of companies -- from the discount to the upscale, from the hip to the pedestrian -- are scheduled to report earnings.

Analysts surveyed by Thomson Financial expect earnings growth, compared to the same period in the previous year, from Urban Outfitters (NASDAQ: URBN) to be 22.7% to 22 cents per share, from Wal-Mart Stores (NYSE: WMT) to be 9.3% to 75 cents per share, and from TJX Companies (NYSE: TJX) to be 7.5% to 40 cents per share.

Analysts expect earnings declines from the previous year from JC Penney (NYSE: JCP) by 52.9% to 49 cents per share, from Kohl's (NYSE: KSS) by 34.4% to 42 cents per share, and from Nordstrom (NYSE: JWN) by 18.3% to 49 cents per share.

In the case of Abercrombie & Fitch (NYSE: ANF), analysts expect earnings to remain flat, year over year, at 65 cents per share.

And then there's Macy's (NYSE: M), which is expected to swing to a loss of 2 cents per share, compared to a profit of 16 cents a year ago.

The sample size may be too small to define any significant trends, but the numbers do suggest that analysts expect profit declines to be deeper than profit growth, and that consumers may be more likely, given the current state of the economy, to buy clothes at Wal-Mart or TJ Maxx than at Nordstrom or Abercrombie.

The coming results will reveal if those expectations are correct.

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Kohl's scales back expansion plans

Brian White — 2008-05-05T11:47:00+00:00

Filed under: Bad news, Kohl's Corp (KSS)

Kohl's Corp. (NYSE: KSS) recently said that it would scale back its plans for opening new locations in the U.S. in 2008 and for the next few years, citing a "squeeze-play on consumers." Instead of the announced 90 new stores this year, Kohl's now expects to open 70 to 75 new stores this year. The retailer is still on track to open its 1,000th store later in 2008, however.

Although the "mall store outside the mall" has identified about 400 sites for potential locations in the near future, it said that kind of expansion may not happen until 2014. Last year, the retailer opened 112 stores nationwide, ending up with a total of 943 stores total in 57 states.

Kohl's is right when it said that its customers are "under a lot of pressure" due to higher fuel, grocery and health care costs. The good news, from what I have seen in the past, is that Kohl's has very low prices for much of its "Croft & Barrow" apparel items, its private-label brand. If it can fight the good fight with Target Corp. (NYSE: TGT) and Wal-Mart Stores, Inc. (NYSE: WMT) in terms of prices and clothing selection, it may yet have decent sales on those items as expensive housewares and related items sink this year.

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12 ways to profit from the middle class recession diet

Peter Cohan — 2008-04-26T17:26:00+00:00

Filed under: Forecasts, Consumer experience, Wal-Mart (WMT), Starbucks (SBUX), Marketing and advertising, Money and Finance Today, Domino's Pizza (DPZ), Kohl's Corp (KSS), Ruth's Chris Steak House (RUTH), Economic data, Stocks to Buy, Stocks to Sell, Recession

The New York Times reports that Americans in the economic middle are eating pasta instead of meat and staying at Hampton's Inn instead of Hilton as they try to keep their families together in the face of flat income and skyrocketing costs. As a result, some companies are suffering and others are benefiting. Let's look at two that are benefiting and 10 that are hurting:

Here are two companies that are doing better thanks to their lower prices:

TJX Co.'s (NYSE: TJX)
Wal-Mart Stores, Inc. (NYSE: WMT)

Here are 10 that are hurting because people can't afford to go out to restaurants and buy expensive clothes:

Bob Evans Farms (NYSE: BOBE)
Denny's (NASDAQ: DENN)
Domino's Pizza (NYSE: DPZ)
J.C. Penney (NYSE: JCP)
Kohl's (NYSE: KSS)
Macy's (NYSE: M)
Morton's Restaurant Group (NYSE: MRT)
Ruby Tuesday (NYSE: RT)
Ruth's Chris Steak House (NYSE: RUTH)
Starbucks (NASDAQ: SBUX)

Investors may want to consider whether to invest in the winners and sell short or simply avoid the losers. And if you're among the pasta eaters -- you'll need to find an inexpensive way to exercise more. Comment below if you want help analyzing these stocks.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

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Ross Stores (ROST): Shares cycle in bullish 'flag'

Larry Schutts — 2008-04-15T13:05:00+00:00

Filed under: Analyst upgrades and downgrades, Good news, Target Corp. (TGT), Kohl's Corp (KSS), Technical Analysis, Stocks to Buy

Ross Stores (NASDAQ: ROST) is a leading U.S. off-price retailer of name brand apparel, accessories, footwear and home fashions. The firm operates 854 Ross Dress for Less stores and 54 dd's Discounts locations, in 27 states and Guam. Target (NYSE: TGT) and Kohl's (NYSE: KSS) are major competitors.

The company pleased investors last week, when it announced March same-store sales figures that easily topped Wall Street estimates. Management also said it expected Q1 EPS of 56-58 cents, versus analyst consensus of 53 cents. The CEO attributed success to solid performances in the dress, shoe and home categories. JP Morgan subsequently upgraded the stock to "overweight" and CL King reiterated its "strong buy".

ROST shares popped on the news and have since been consolidating the gain in a bullish "flag" pattern. Equities frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Altogether, brokers now recommend the issue with three "strong buys", three "buys" and eight "holds". Analysts see a 15% average annual growth rate, through the next five years. The stock's P/E ratio (16.41), PEG ratio (1.11), Price to Sales ratio (0.70), Price to Cash Flow ratio (10.93), Return on Assets (11.04%), Return on Investment (19.81%) and Return on Equity (27.76%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 95% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $21.23 and $35.17. A stop-loss of $27.65 looks good here. Note that the company is expected to report Q1 results in late May.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Biggest brains in business, incredible shrinking city & big names owe big-time on taxes - Today in Mondy 4/14

Allan Halprin — 2008-04-14T08:56:00+00:00

Filed under: Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Time Warner (TWX), Starbucks (SBUX), JPMorgan Chase (JPM), Penney (J.C.) (JCP), Blockbuster Inc 'A' (BBI), Circuit City Stores (CC), Goldman Sachs Group (GS), Kohl's Corp (KSS), Wachovia Corp (WB), News Corp'B' (NWS), AMR Corp (AMR), salesforce.com inc (CRM), Delta Air Lines (DAL)

In the News:

· Wachovia Posts Surprising Loss, to Raise $7 Billion in Capital; Stock Drops

· Blockbuster Bids Over $1 Billion to Buy Circuit City

· Google & Salesforce.com Join to Fight Microsoft

· Yahoo Board Agrees to Hold Further Meetings This Week With Microsoft, AOL

· American Airlines Finally Returns All Jets to Service

· Report: Delta-Northwest Very Close to Merger; Would Create World's Largest Airline

· U.S. Retail Sales Struggle to Rise Slightly in March

Why Starbucks' Logo Changed
The coffee chain is temporarily using a retro brown look to evoke its beginnings and restore some goodwill for the brand.
Starbucks' Retro Logo - BusinessWeek

Big Names Owe Big-Time on Taxes
The IRS estimates that 21% of federal individual income taxes go unpaid each year - about $300 billion last year. As Tuesday's tax deadline approaches, Americans are settling accounts on $1.5 trillion in federal and state income taxes for 2007. But what about those who don't pay? Who are they? Do they get away with it? Hundreds of seemingly wealthy people - company presidents, former soap opera stars, top-selling real estate agents - live in multimillion-dollar homes yet have huge tax problems. Many tax delinquents live openly and prosperously for years, even decades, while owing millions of dollars in taxes. These include singer Dionne Warwick, comedian Sinbad, Bill Clinton's former political advisor, Dick Morris, former U.S. treasurer Catalina Vásquez Villalpando and infamous celebrity OJ Simpson to name a few.
Big names owe big-time on taxes - USATODAY.com

73 Biggest Brains in Business
Who really are the smartest folks in the room? Condé Nast Portfolio talked to scores of C.E.O.'s, economists, and power players for a look at who's influencing the influencers. They include rebels like Tina Fey and Steven Spielberg and designer Marc Jacobs, game changers like News Corp.'s Rupert Murdoch, Goldman Sachs' Lloyd Blankfein and JP Morgan Chase's Jamie Dimon and tastemakers like Oprah Winfrewy and Karl Lagerfeld.
The-Brilliant-Issue - Portfolio.com

The Incredible Shrinking City
Youngstown, Ohio, has seen its population shrink by more than half over the past 40 years, leaving behind huge swaths of empty homes, streets and neighborhoods. Now, in a radical move, the city - which has suffered since the steel industry left town and jobs dried up - is bulldozing abandoned buildings and tearing up blighted streets, converting entire blocks into open green spaces. More than 1,000 structures have been demolished so far.
The incredible shrinking city - CNNmoney

Big Retailers Seek Teens (and Parents)
Having lost shoppers to hip specialty shops, department stores are reinventing themselves to attract both adults and their style-minded children. J.C. Penney, Macy's, Bloomingdale's, Saks Fifth Avenue and Kohl's are all adopting approaches - from celebrity-designed fashions to mobile marketing to better fitting rooms - to try to lure young shoppers without turning off their parents.
Big retailers seek teens (and parents) - USATODAY.com

Choking on Food Prices
The cost of food has become a headline story the world over, from food-related riots in Haiti and Egypt to some Asian governments mulling whether to restrict rice exports. In the U.S., grocery bills are surging: Nearly every food staple has seen a double-digit percentage increase over the past year, including a 38% hike for a dozen eggs, to $2.16, and a 19% jump, to $1.78, for a loaf of white bread, according to American Farm Bureau data. With Americans spending 15% of their household income on food and drinks, rising prices in the grocery aisles have spurred consumers to hunt savings.
Squeezed by Rising Food Costs- BusinessWeek

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Cramer on BloggingStocks: The market's new pattern-making

Jim Cramer — 2008-04-10T10:02:00+00:00

Filed under: Wal-Mart (WMT), Columns, Target Corp. (TGT), Kohl's Corp (KSS)

TheStreet.com's Jim Cramer says yesterday didn't deliver a giant down close, just profit-taking. It may signal a new bullish pattern to watch.

You just want it to close down, get clocked, remove the water torture. But what's really happening is we are working off the overbought condition in a fine fashion.

It's a natural thing in this market, after a big move, to give it all back and then some. However, that has not happened this time. We have had a series of small declines, nothing monumental and we may have to recognize that we are in a new pattern where we have profit-taking but no more.

I was over at Stockpickr.com yesterday -- I try to check in a couple of times a day -- and was not surprised to see questions in the Answers section about what is wrong with the steel stocks. To me, the steels are exhibiting classic bullish behavior, a great run followed by a small pullback -- true bull market behavior.

Now, here's the test: the comp sales. We had some bad numbers, especially from outfits like Target (NYSE: TGT) (Cramer's Take) and Kohl's (NYSE: KSS) (Cramer's Take), and I don't think it will matter! Wal-Mart (NYSE: WMT) (Cramer's Take) guided up, and I think it could power over $55.

I have been negative on this market, but I like the way it bounces off when it is down big. Have to recognize a new, more bullish pattern when you see one.

Market highlights for next week: Alcoa to report earnings

Eric Buscemi — 2008-04-04T17:25:00+00:00

Filed under: Earnings reports, Conventions and conferences, Annual meetings, Wal-Mart (WMT), Target Corp. (TGT), Alcoa Inc (AA), Bed Bath and Beyond (BBBY), Bristol-Myers Squibb (BMY), Gap Inc (GPS), Kohl's Corp (KSS), Abercrombie and Fitch (ANF), Genentech Inc (DNA)

Monday, April 7

PDUFA date for Bristol-Myers Squibb Co. (NYSE: BMY)'s supplemental Biologics License Application for Orencia for the treatment of Juvenile Rheumatoid Arthritis.
Alcoa Inc. (NYSE: AA) to report Q1 earnings; conference call at 5pm.

Tuesday, April 8

Chattem Inc. (NASDAQ: CHTT) to report Q1 earnings; conference call at 9:00am.
FOMC to release minutes of the March 18th meeting at 2:00pm.
Embraer-Empr Bras Aeronautica (ADR) (NYSE: ERJ) conference call to announce new midsize & midlight executive jet concepts at 6:00pm.

Wednesday, April 9

2-Day House Financial Svcs Committee: Hearing on Economic, Mortgage and Housing Rescue Bill.
Dallas Federal Reserve Bank President Richard Fisher to deliver a speech in San Antonio at 1:30pm.
Hot Topic, Inc. (NASDAQ: HOTT) to report March sales at 4:00pm.
Bed Bath and Beyond, Inc. (NASDAQ: BBBY) to report Q4 earnings; conference call at 5:00pm.

Thursday, April 10

2-Day House Financial Svcs Committee: Hearing on Economic, Mortgage and Housing Rescue Bill.
The Gap Inc. (NYSE: GPS) and Wal-Mart Stores, Inc. (NYSE: WMT) to report March sales at 8:00am, Abercrombie & Fitch Co. (NYSE: ANF) to report March sales at 8:15am, Kohl's Corporation (NYSE: KSS) and Target Corporation (NYSE: TGT) to report March sales at 8:30am.
Genentech, Inc. (NYSE: DNA) to report Q1 earnings; conference call at 4:45pm.

Friday, April 11

Fastenal Company (NASDAQ: FAST) to report Q1 earnings; conference call at 10:00am.
Shaw Communications Inc. (NYSE: SJR) to report Q2 earnings; conference call at 11:00am.

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Retail sales, especially Nordstrom, as economic barometer

Joseph Lazzaro — 2008-03-31T12:06:00+00:00

Filed under: Penney (J.C.) (JCP), Kohl's Corp (KSS), Nordstrom, Inc (JWN), Recession

What's a tell-tale sign of a recession, and conversely, an indicator investors/readers should monitor to spot when the recovery has started? Retail sales -- particularly at department stores.

Most retailers will report March 2008 same-store sales this week, and Wall Street is bracing for the worst. In January 2008 and February 2008, same-store sales declined at nearly every major department store, including JC Penney (NYSE: JCP), Macy's (NYSE: M), Kohl's (NYSE: KSS), Dillard's (NYSE: DDS) and Nordstrom (NYSE: JWN).

Further, investors should watch Nordstrom's same-store sales carefully. The reason? Upscale retailer Nordstrom is a type of quick-reference, or an economic-barometer-in-a-snapshot, of the depth of a recession. If retail sales decline at broader-demographic retailers for several consecutive months, that points to a recession. But if sales decline at upscale retailer Nordstrom, that's a sign that even those with higher incomes and substantial assets are cutting back, which is a bad sign for the economy.

Nordtstrom's customers include professionals, executives and business owners -- including people who make hiring decisions. If they're cutting back, that may indicate they will not be hiring in the period ahead, which is never good news for the economy. Invariably, it means the recession's end is not near.

In Q4 2007, Nordstrom's sales fell 4.4% and earnings per share fell for the first time in more than five years to 92 cents per share. If Nordstrom's same-store sales decline again in March, that's a sign of continued belt-tightening by upper-middle and upper-income adults, and a sign that an economic recovery is not near.

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Maidenform Brands (MFB): Shares cycling in bullish 'flag' consolidation pattern

Larry Schutts — 2008-03-12T12:34:00+00:00

Filed under: Earnings reports, Penney (J.C.) (JCP), Kohl's Corp (KSS), Technical Analysis, Stocks to Buy

Maidenform Brands (NYSE: MFB) designs and sells a range of intimate apparel products in the United States and Canada. Offerings include bras, panties and shapewear, marketed under the brand names Maidenform, Flexees, Lilyette, Sweet Nothings, Rendezvous, Subtract, Bodymates and Self Expressions. The company sells its products through department stores, specialty retailers, company-operated outlet stores and a Web site. Kohl's (NYSE: KSS) and J.C. Penney (NYSE: JCP) are major customers.

The firm pleased investors last week, when it reported Q4 EPS of 27 cents and revenues of $95.8 million. Wall Street analysts had been looking for 20 cents and $89.8 million. The CEO attributed success in the quarter to sourcing initiatives and growth of the wholesale branded business.

The share price popped through 30-day, 50-day and 90-day moving average resistance on the news and has since been defining a bullish "flag" consolidation pattern. Stocks frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the issue with one "strong buy" and four "holds". The MFB P/E ratio (9.53), PEG ratio (1.00), Price to Sales ratio (0.72), Price to Book ratio (3.05), Price to Cash Flow ratio (7.86), Price to Free Cash Flow ratio (8.92), EPS Growth rate (102.47%), Return on Assets (13.04%), Return on Investment (15.86%) and Return on Equity (39.20%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $11.03 and $24.49. A stop-loss of $11.90 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Can Avril Lavigne help Kohl's sell clothes?

Zac Bissonnette — 2008-03-05T17:15:00+00:00

Filed under: Marketing and advertising, Kohl's Corp (KSS)

Punk-pop princess Avril Lavigne has signed a deal with Kohl's Corporation (NYSE: KSS) to introduce a line of junior fashions to be sold exclusively at Kohl's stores.

The brand will be called Abbey Dawn -- after the singer's childhood nickname. Lavigne said the collection will consist of "a lot of hot pinks and blacks and stars and purple and zebra. Basically, everything I wear." Kohl's says that Abbey Dawn is "a rock collection with a feminine edge." Lavigne says she will be designing the products herself and wearing them on her tour.

Kohl's seems like an interesting choice for a partner for this -- a little too clean-cut for the image she has cultivated throughout her career. Hot Topic, Inc. (NASDAQ: HOTT) would have been a more obvious choice -- and judging from the stock price, they could really use the help.

But I think it's a good career move for Lavigne as she looks to move beyond her early success as a pseudo-edgy "punk rocker" for pre-teen girls. So far, that move has been a success with her 2007 album selling well and receiving solid reviews.

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Option update: Kohl's volatility elevated as comparable Q4 store sales decline 4%

Paul Foster — 2008-02-29T09:43:00+00:00

Filed under: Kohl's Corp (KSS), Options

Kohl's (NYSE: KSS) closed at $45.24 Thursday.

Goldman Sachs says: "expect shares to trade flat to modestly higher following an in-line quarter and setting of an achievable F08 earnings bar."

KSS April option implied volatility of 46 is above its 26-week average of 40 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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