For its latest quarter, Coach (COH) posted a profit of $238.9 million, or 84 cents per share, compared with $225.0 million, or 77 cents a share, a year earlier. While the company is known for its handbags, its first quarter was all about shoes.
The results topped Wall Street forecasts by 4 cents per share. Revenue rose 7% to $1.19 billion, just ahead of the $1.18 billion Wall Street consensus.
The company's conference call certainly confirmed that shoes were selling well. North American Retail President Michael Tucci said, "In March, we relaunched shoes in 170 retail stores in North America."
Tucci explained, "The response from consumers has been extremely positive as the business in these footwear locations went from about 3% to almost 12% of the business."Advisors' Opinion:
- [By Sy_Harding]
My second retail value stock is clearly a value stock: Family Dollar Stores (FDO -0.20%, news). Operating in the intensely competitive discount retail segment at a time when its customer base was feeling the brunt of the slow recovery, Family Dollar managed to grow same-store sales 4.8% in fiscal 2011, with a 5% to 7% increase projected for fiscal 2012 and to improve its market position by shifting its merchandise mix and moving into urban neighborhoods. The stock trades at about 18 times trailing 12-month earnings per share and just about 13 times forward projected earnings. Wall Street analysts are looking for 23.6% earnings growth in the quarter that ends in February 2012.
- [By Stockpickr]
Dollar General (DG), which is set to release numbers on Tuesday before the market open. This company operates as a discount retailer of general merchandise in the southern, southwestern, midwestern, and eastern U.S. Wall Street analysts, on average, expect Dollar General to report revenues of $3.54 billion on earnings of 48 cents per share.
A company like Dollar General that offers discounted good should be thriving and succeeding easily in this current economic environment of slow growth and anemic job growth. This company missed Wall Street estimates last quarter after beating estimates during the prior two quarters. Net income has been trending up for the past three quarters and revenues have trended higher for the past four quarters.
If this company sees a move back into a recession for the U.S., then expect them to guide higher and for the stock to surge post-earnings as the shorts cover their bets. The current short interest as a percentage of the float for Dollar General is a notable 7.7%. That means that out of the 99.06 million shares in the tradable float, 7.66 million are sold short by the bears.
From a technical standpoint, this stock is currently trading above both its 50-day and 200-day moving averages, which is bullish. The stock has also just today started to break out above some near-term overhead resistance at around $33.30 a share.
One way to play this stock is to buy some out-of-the-money call options ahead of the quarter if you think this company is going to guide higher and attract some buyers. Since the stock is trending strong and not far off its 52-week high of $35.09, an options bet could pay off here. By playing the call options you risk will be defined to whatever you decide to put into the trade.
Another less risky way to play this is to simply wait until after they report and only buy the stock if it breaks out on solid volume. I would be a buyer once it trades above $35.09 on volume tracking close to or greater than its three-month aver! age volume of 1.7 million. Keep in mind that $34 to $35 a share on this stock has marked tough resistance all year, so a breakout above those levels would be significant for the bulls.
I would only short this name if you see it drop below its 50-day moving average of $32.71 a share following their earnings report. I would add to any shorts if it then takes out its 200-day moving average of $31.30 a share, and target $29 or lower if the bears knock this lower post-earnings.
Top 5 Gold Stocks To Watch Right Now: Nordstrom Inc.(JWN)
Nordstrom, Inc., a fashion specialty retailer, offers apparel, shoes, cosmetics, and accessories for women, men, and children in the United States. It offers a selection of brand name and private label merchandise. The company sells its products through various channels, including Nordstrom full-line stores, off-price Nordstrom Rack stores, Jeffrey? boutiques, treasure & bond, and Last Chance clearance stores; and its online store, nordstrom.com, as well as through catalog. Nordstrom also provides a private label card, two Nordstrom VISA credit cards, and a debit card for Nordstrom purchases. The company?s credit and debit cards feature a shopping-based loyalty program. As of September 30, 2011, it operated 222 stores, including 117 full-line stores, 101 Nordstrom Racks, 2 Jeffrey boutiques, 1 treasure & bond store, and 1 clearance store in 30 states. The company was founded in 1901 and is based in Seattle, Washington.
Advisors' Opinion:- [By Kevin1977]
Director of Nordstrom Inc., Felicia D Thornton, bought 1,140 shares on 9/09/2011 at an average price of $47.89. Nordstrom, Inc. is one of the nation's fashion specialty retailers, with stores located in a number of states, including full-line stores, Nordstrom Racks, Faconnable boutiques, and free-standing shoe stores. Nordstrom Inc. has a market cap of $10.44 billion; its shares were traded at around $47.89 with a P/E ratio of 15.7 and P/S ratio of 1.1. The dividend yield of Nordstrom Inc. stocks is 2% Nordstrom Inc. had an annual average earnings growth of 27.3% over the past 10 years. GuruFocus rated Nordstrom Inc. the business predictability rank of 3.5-star.
On August 11, Nordstrom Inc. reported net earnings of $175 million, or $0.80 per diluted share, for the second quarter ended July 30, 2011. This represented an increase of 20 percent compared with net earnings of $146 million, or $0.66 per diluted share, for the same quarter last year.Second quarter same-store sales increased 7.3 percent compared with the same period in fiscal 2010. Net sales in the second quarter were $2.72 billion, an increase of 12.4 percent compared with net sales of $2.42 billion during the same period in fiscal 2010.
Last week, Director Felicia D Thornton bought 1,140 shares of JWN stock.
Executive Vice President Ken Worzel and Director Philip G Satre bought shares in August.
- [By James K. Glassman]
Shares of the luxury handbag maker Coach (symbol: COH) fell 7% in 2012, mainly because of sluggish sales in North America. But skittish investors overlooked Coach's overseas business. In the July–September quarter, foreign sales rose 15% from the same period in 2011, driven by nearly 40% growth in China. Coach pulls in average sales of $2,500 per square foot per year from its more than 800 stores worldwide, 25% more than rival Tiffany. Coach has significantly raised its dividends every year since 2009; its stock yields 2.1%.
Hot Retail Stocks To Invest In Right Now: AutoZone Inc.(AZO)
AutoZone, Inc. retails and distributes automotive replacement parts and accessories. The company?s stores offer various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Its automotive hard parts product line includes A/C compressors, batteries and accessories, belts and hoses, carburetors, chassis, clutches, CV axles, engines, fuel pumps, fuses, ignition, lighting, mufflers, starters and alternators, water pumps, radiators, and thermostats. The company?s maintenance items include antifreeze and windshield washer fluid; brake drums, rotors, shoes, and pads; chemicals, including brake and power; steering fluid, oil, and fuel additives; oil and transmission fluids; oil, air, fuel, and transmission filters; oxygen sensors; paint and accessories; refrigerant and accessories; shock absorbers and struts; spark plugs and wires; and windshield wiper s. Its discretionary product line comprises air fresheners, cell phone accessories, drinks and snacks, floor mats and seat covers, mirrors, performance products, protectants and cleaners, sealants and adhesives, steering wheel covers, stereos and radios, tools, and wash and wax products. The company also offers commercial sales program that provides the delivery of parts and other products to local, regional, and national repair garages, dealers, service stations, and public sector accounts. In addition, it sells the ALLDATA brand automotive diagnostic and repair software through the Website, alldata.com; and automotive hard parts, maintenance items, accessories, and non-automotive products through the Website, autozone.com. As of May 7, 2011, the company operated 4,467 stores in the United States and Puerto Rico, and 261 stores in Mexico. AutoZone, Inc. was founded in 1979 and is based in Memphis, Tennessee.
Advisors' Opinion:- [By Paul]
Timothy W Briggs, who is a Senior Vice President at AutoZone Inc. (NYSE:AZO), sold 12,830 shares on Sep 26 at $324.83 per share for a total value of $4,167,574. About the company: AutoZone, Inc. is a specialty retailer of automotive replacement parts and accessories. The Company offers an extensive product line for cars, sport utility vehicles, vans and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories and non-automotive products. Autozone operates in United States and Puerto Rico, and Mexico.
- [By Curtis Hesler]
AutoZone Inc. (NYSE: AZO ) has now been on the Top 5 List for seven consecutive months! and on July 14, AZO broke through its 52-week high. The company also remains remarkably steady in terms of financial health and it receives top marks for buying pressure. Earnings will be released in mid-September and should be impressive. As Americans drive their older cars longer and delay big ticket purchases like new autos, AZO is a good buy.
No comments:
Post a Comment