About Us | Contact Us
May 23, 2012 6:52 PM EDT
Updated: Aug 26, 2010 1:59 PM EDT  

Consumer

Leohner, Ahern, Anastasi (212) 829-5484

News and Views

Consumer Discretionary stocks were lower with Department stores taking it on the chin as a group.  GES was down 10% on poor guidance is was the biggest loser in retail.  Retailers should not get hit too much today as shorts may take a little off on a light trading day ahead of the weekend.



Macro/Technicals

SPX: 1047.42; -.75%
RLX: 401.29; -.96%
RTH: 88.17; -.94%
XLY: 30.20; -.69%
XLP: 26.52; -.75%
VIX: 27.20; -1.87%

Leaders: JAS, GAP, FRZ, HAIN, BGP, BBW, NFLX, BEBE
Laggards: GES, CWTR, ZLC, TRLG, TPX, ODP, LZB

Earnings

TIF Tiffany & Company reports Q2 EPS $0.53 cont ops vs Reuters $0.53 ($42.04).  Company reports revenues of $668.8M vs Reuters $690.0M.

  • Q2 comps 5% vs SA consensus7.5
  • Guides full year EPS to $2.60-2.65 vs prior 2.55-2.60 vs Reuters $2.63.
  • Reaffirms full year revenue increase of ~11%, implying $3.01B. Reuters consensus is $3.04B


Sector News, M&A, Capital Raises

TZOO Travelzoo surpasses 1M subscriber milestone in Germany ($15.58).  TZOO announced that it now has more than 1M unduplicated subscribers to its German publications, including the Travelzoo Top 20 and Newsflash email alert service. The number of German subscribers has grown by 385,964 over the past 12 months, an annual increase of 62%. In the first six months of 2010, average weekly clicks to the German edition of the Top 20 were 303,572, up 112% over the prior year period and almost twice the rate of new subscribers.

 

NESN.VX  Nestle embarks on $487M coffee binge – WSJ.  The company is spending the money over ten years to raise the quality and volume of coffee it produces. Having decided it should get involved upstream, Nestle plans to provide lessons and 220M new coffee trees to farmers, who will not be locked into long-term contracts. A coffee-coop organizer in Mexico says 60% of his producers intend to sell their beans to Nestle, because of the attention and commitment the company has shown. The article lists Unilever (UN), Kraft (KFT), and LVMH Moët Hennessy Louis Vuitton (MC.FP) as other companies that are seeking better control of their ingredients.

 

BLOKA Blockbuster plans bankrutpcy filing next month - LA Times ($0.11).  People who have been briefed on the matter tell the LA Times that Blockbuster is preparing to file for bankruptcy in September. Executives and debt holders met with studios last week to present the process as the most likely course of action, though not a definite one, explaning that the company would enter a pre-planned bankruptcy in the middle of the month. Blockbuster hopes that bankruptcy will allow it to restructure its debt and get out of leases on 500-800 of its doors. If the film studios approve -- and the article says most of them are supportive -- the company will maintain its supply of new DVDs duyring the process. Avoiding bankruptcy would involve finding a new investor or getting debtholders to reduce its interest payments for some time.



 


Top Events/Earnings Calendar

Earnings

PRE:  TIF

POST:  


Cantor Flows

Flows

Consumer Staples:  GMCR, HI, TSN

Consumer Discretionary:  FRED, JJSF, KSWS, PBY, PSUN, RSH

Consumer Services:  LANC, LOV

 


Disclaimer: Prepared by staff of Cantor Fitzgerald & Co. ("Cantor") and is for information purposes only. It is not intended to form the basis of any investment decision, should not be considered a recommendation by Cantor or any other person and does not constitute an offer or solicitation with respect to the purchase or sale of any investment nor is it a confirmation of terms. Any calculations and valuations presented herein are intended as a basis for discussion. Sources of information are believed to be reliable but Cantor makes no representation and gives no warranty that the information contained herein is accurate or complete. Any opinions or estimates given may change. Cantor undertakes no obligation to provide recipients with any additional information or any update to or correction of the information contained herein. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. Cantor, its officers, employees, affiliates and partners shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in the information contained herein or any reliance on that information. Cantor may have positions in financial instruments mentioned, may have acquired such positions at prices no longer available, and may have interests different or adverse to your interests. No liability is accepted by Cantor for any loss that may arise from any use of the information contained herein or derived here from. This product may not be reproduced or redistributed outside the recipient's organization. Sources: Cantor Fitzgerald & Co., Reuters, Bloomberg, CNBC, Dow Jones, Marketwatch, Trade-Alert, and the Wall Street Journal. ***All eco data from Bloomberg and DJ