Consumer
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News and Views
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Macro/Technicals
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Cantor Flows
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News and Views
On the desk Consumer Staple buying outpaced Retail buying 4-1.
JNY beats on EPS and Revs. It had a good move into earnings but the stock should continue higher. It should be positive for LIZ and NWY.
PEP PepsiCo to make major push for oatmeal business -- WSJ ($65.69)
The company will put more money into it North American oatmeal business, which had almost $2B in yearly sales. The problems are twofold, store brands are winning over frugal customers but also, fewer people are eating breakfast. The company admits it has not invested enough in product innovation at its Quaker Oats unit but will launch new products for both children and adults in the coming months.
ELY Callaway Golf announces restructuring of global operations ($6.82)
Over the next 18 months, the company will reorganize the manufacturing and distribution in California and Canada, third party logistics sites will be created and a new production site will be established in Mexico. The redesign is part of the previously announced Global Operations Strategy.
AMZN Amazon.com is out of stock on Kindles -- Barron's ($117.13)
The website does not give specifics as to when the devices will be back in stock. The posting notes speculation that there has either been a surge in demand or a newer model is coming.
WTSLA Wet Seal CEO Edmond Thomas will step down; effective 8-Oct ($3.54)
The company will conduct a seach for a new CEO.
Macro/Technicals
SP Futures: 1009.90; -1.00SPX: 113.84; -.10
RLX: 407.72; -1.91
RTH: 89.93; -1.33
XLY: 31.61; -1.28
XLP: 227.39;
VIX: 23.19; +2.02
Leaders: PTRY, OWW, NLS, FACE (In Da FACE!!!!), HAIN, POOL
Laggards: LF, CHS, ODP, GES, WSM, KCP, ANN, LIZ, ZLC
Cantor Flows
Consumer Staples: CAG, IPAR, GMCR, IPAR, NWL, RAH, SFD
Consumer Discretionary: AMZN, MIDD
Consumer Services: ABTL, CECO
Earnings
JNY Jones Apparel reports Q2 EPS $0.45 ex-items vs Reuters $0.34 ($16.68)
Company reports revenues of $860.0M vs Reuters $837.2M.
DEST Destination Maternity reports Q3 EPS $1.48 ex-items vs 8-Jul guidance of top half of $1.29-1.47 range ($28.50)
Company previously reported revenues of $142.0M.
- Full year guidance
- revenues $530-533M vs Reuters $538.0M
- comps (3.1%)-(3.7%)
- EPS ex-items $3.09-3.23 vs prior guidance of $2.93-3.28
- GAAP EPS $2.30-2.45 vs prior guidance of $2.15-2.50.
WINN Winn-Dixie reaffirms fiscal 2010 (Jun) guidance; to close 30 underperforming stores ($10.22)
- Guidance: company says it expects to achieve the low end of its $140-160M EBITDA target through effective management of promotional activity and cost control, despite a deteriorating sales environment in Q4 (Jun).
- Store closures: company will close 30 non-remodeled storesand will also consolidated its four operating regions into three. In addition to the staffing reductions related to the closings, company will also eliminate 120 positions in its corporate and field support stsaffs. Annual savings are expected to be $12-17M, which should begun to be realized after the end of Q1. Closures and reductions are expected to be compated by the end of Q1 (Sep). Related charges will total $35-50M in Q1, including lease-related costs of $30-45M and severance of $5M.
BGS B&G Foods reports Q2 EPS $0.19 ex-items vs Reuters $0.19 ($11.25)
- Company reports revenues of $121.1M vs Reuters $128.4M.
- For Q2 of 2010, EBITDA increased 10.1% to $28.0M from $25.5M for Q2 of 2009 and vs. Reuters $27.9M.
- Company now expects EBITDA for fiscal 2010 to be approximately $109.0 to $112.0M vs. prior $108.0 to $111.0M and Reuters $111.8M.
RCKY Rocky Brands reports Q2 EPS $0.17 ex-items ($7.29)
- Reuters estimate is ($0.10) and unclear if comparable
- Company reports revenues of $55.2M vs Reuters $55.0M.
- Gross margin in Q2 of 2010 was $19.1M, or 34.6% of sales compared to $17.7M, or 34.6% for the same period last year.
EK Eastman Kodak reports Q2 EPS ($0.51) vs Reuters ($0.32) ($4.93)
Company reports revenues of $1.57B vs Reuters $1.67B.
- Revenue from digital businesses totaled $1.103B, a 6% decrease from $1.173B in the prior-year quarter.
- Cash generation, before restructuring payments, reflected a use of $170M. This compared with cash usage on the same basis of $136M in the year-ago quarter
- Guides f10 revenues to $7.5-$7.7B vs Reuters $7.60B, and the company expects full-year digital revenue at the high end of its previous forecast and full-year traditional revenue slightly below the previous forecast.
- Kodak continues to forecast 2010 GAAP loss from continuing operations in the range of $50M to $150M, including the impact of the $102M net charge for early extinguishment of debt, related to the company's financing transactions in Q1 of 2010.
TBL Timberland reports Q2 EPS ($0.44), including $13.2M non-cash, pre-tax charge ($18.21)
Unclear if comparable to Reuters consensus of ($0.34). Company reports revenues of $189.0M vs Reuters $189.5M. Revenue breakdown:
- Footwear $131.6M vs year ago $127M, +3.7%
- Apparel and Accessories $52.1M vs year ago $47.2M, +10.2%
- Royalty and Other $5.3M vs year ago $5.5M, (3.8%)