Consumer
| Today's Consumer Stories | |
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News and Views
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Macro/Technicals
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Earnings
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Sector News, M&A, Capital Raises
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Research Away
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Top Events/Earnings Calendar
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Cantor Flows
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News and Views
M & A activity had the markets up early. Consumer Staples outperformed with the help of CPB reportedly having interest in a unit of Britain's United Biscuits. Consumer Discretionary was worse than the overall market but had some bright spots from Discounters like COST and WMT. LOW received an upgrade for GSCO and was still unable to hold onto gains as it was down nearly 2 % after being up a like amount early and we will be sellers of LOW and HD. BIG beat and raised guidance and that should help BJ, TGT, and FRED.
Macro/Technicals
SPX: 1067.36; -.40%RLX: 405.91; -.99%
RTH: 88.67; -.36%
XLY: 30.62; -.91%
XLP: 26.79; +.22%
VIX: 25.66; +.67%
Leaders: DLIA, RUE, AVP, DMND, SVU, WMT
Laggards: FLWS, ACAT, NLS, BBW, BC, SFN, KIRK, ZLC
Earnings
BIG Big Lots reports Q2 EPS $0.48 ($31.75) . Net income from discontinued operations was $0.1M in Q2. Reuters $0.47. Company reports revenues of $1.14B. BIG reported Q2 revenues of $1.13B on 5-Aug. Q2 comps. +3.8% were previously reported on 5-Aug. Guides full year EPS to $2.82-$2.90, above prior $2.75-$2.85 vs Reuters $2.85. BIG reiterates f10 guidance for $220M of cash flow. F10 comps. guided to 3.5-4.5%, unchanged from prior. BIG purchased $83.8M of it stock during Q2, has repurchased $68M during Q3 through 23-Aug, and has $98.2M remaining under its Mar-10 repurchase program.
Sector News, M&A, Capital Raises
BGP Borders Group says CFO Mark Bierley has resigned to pursue another employment opportunity ($1.19). Company has named Vice President Glen Tomaszewski as Interim CFO. Bierley will assist Borders in the transition process as it initiates the search for a new CFO.
DF Dean Foods names COO Joseph Scalzo to additional role of president, effective immediately ($10.03)
RSH RadioShack enters into $300M accelerated share repurchase agreements with Bank of America (BAC), Wells Fargo (WFC) ($18.48). The repurchases are being made under the $500M program previously authorized by the board. When the board raised the size of the repurchase program 18-Aug, it directed that a significant portion of the repurchase program commence as soon as practicable.
JWN Inventory management has been key to Nordstrom's recent success - NYT ($31.23). The article does not break any news. In the 11 months since Nordstrom has changed its inventory management to be more like its website's and less like a traditional retailer's, comps have been better than its peers. The company says higher sales have more than paid for the few extra shipping employees it has had to hire.
Research Away
Janney Capital initiates:
- Abercrombie & Fitch (ANF) initiated buy with $42 target
- Ann Taylor (ANN) initiated buy with $19 target
- J. Crew Group (JCG) initiated buy with $41 target
- Talbots (TLB) initiated buy with $14 target
- Urban Outfitters (URBN) initiated buy with $40 target
- Zumiez (ZUMZ) initiated buy with $19 target
- American Eagle (AEO) initiated neutral with $12 target
- Aeropostale (ARO) initiated neutral with $25 target
- Bebe Stores (BEBE) initiated neutral with $6 target
- Chico's FAS (CHS) initiated neutral with $10 target
- Coldwater Creek (CWTR) initiated neutral with $4 target
- Gap (GPS) initiated neutral with $19 target
- Gymboree (GYMB) initiated neutral with $44 target
- Hot Topic (HOTT) initiated neutral with $5 target
- Pacific Sunwear (PSUN) initiated neutral with $4 target
- The Buckle (BKE) initiated sell with $21 target
DG Dollar General mentioned as long Research Tactical Idea at Morgan Stanley ($28.15)
Top Events/Earnings Calendar
Events
WOOF-- Morgan Keegan w/VCA Antech
Earnings
PRE: BIG
POST: PSUN, RUE
Cantor Flows
Flows
Consumer Staples: DMND, GMCR, JJSF, MJN, NWL, PG, SLE
Consumer Discretionary: FLWS, FRED, FTAR, HIBB, PBY
Consumer Services: ABTL, COCO, TIVO
Pre-Market Movers
UP— BIG +7%
DOWN— BGP -1.5%;