COST EPS Q3 FY 2011 - Costco Trouble Passing Prices Through

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Costco

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

COST EPS Q3 FY 2011

Costco (Nasdaq: COST) shares were down 1% in Wednesday trading, after the company reported its third quarter profit up 5.9%. Revenue gained 16%, benefiting from U.S., Canadian and Mexican growth. COST’s EPS of $0.73 though, fell short of the consensus view for $0.77, based on Factset data. Costco’s revenue growth benefited from higher gasoline and food prices, but its gross margin was pressured. It appears many companies are having trouble passing price increases completely through. When a discounter's cost of goods sold is pressured, and it competes on price, its margins are getting squeezed. So while a tough economy and rising prices send people to the discounters, driving up their volumes, it also contracts their variable cost margins.



Article interests investors in: S&P Retail ETF (NYSE: XRT), Wal-Mart (NYSE: WMT), Pier 1 Imports (NYSE: PIR), Ethan Allen (NYSE: ETH), Hooker Furniture (Nasdaq: HOFT), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Apple (Nasdaq: AAPL), Best Buy (NYSE: BBY), The Limited (NYSE: LTD), Chicos (NYSE: CHS), Ann Taylor (NYSE: ANN), The Gap (NYSE: GPS), Macy’s (NYSE: M), JC Penney (NYSE: JCP), Nordstrom (NYSE: JWN), TJX Company (NYSE: TJX), Kohls (NYSE: KSS), Costco (Nasdaq: COST), Target (NYSE: TGT), Wet Seal (Nasdaq: WTSLA), Hot Topic (Nasdaq: HOTT), American Eagle Outfitters (NYSE: AEO), Aeropostale (NYSE: ARO), Abercrombie & Fitch (NYSE: ANF), Saks (NYSE: SAK), Tiffany (NYSE: TIF), Talbots (NYSE: TLB), Lumber Liquidators (NYSE: LL), Builders Firstsource (Nasdaq: BLDR), Fortune Brands (NYSE: FO), Leggett & Platt (NYSE: LEG), Tempur-Pedic International (NYSE: TPX), Acuity Brands (NYSE: AYI), La-Z-Boy (NYSE: LZB), Select Comfort (Nasdaq: SCSS), Sleepy’s (NYSE: ZZ), Furniture Brands (NYSE: FBN), Natuzzi (NYSE: NTZ), Sears (Nasdaq: SHLD), Dillard’s (NYSE: DDS), Bon-Ton (Nasdaq: BONT), Cost Plus (Nasdaq: CPWM), Baker’s Footwear (Nasdaq: BKRS.OB), Bebe Stores (Nasdaq: BEBE), The Buckle (NYSE: BKE), Cache (Nasdaq: CACH), Casual Male (Nasdaq: CMRG), Cato (Nasdaq: CATO), Christopher & Banks (NYSE: CBK), Citi Trends (Nasdaq: CTRN), Collective Brands (NYSE: PSS), Destination Maternity (Nasdaq: DEST), Dress Barn (Nasdaq: DBRN), DSW (NYSE: DSW), Finish Line (Nasdaq: FINL), Footlocker (NYSE: FL), Gymboree (Nasdaq: GYMB), Guess (NYSE: GES), J. Crew (NYSE: JCG), Jones New York (NYSE: JNY), Jos. A Banks (Nasdaq: JOSB), New York & Co. (NYSE: NWY), Men’s Wearhouse (NYSE: MW), Syms (Nasdaq: SYMS), The Children’s Place (Nasdaq: PLCE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

RL EPS Q4 FY 2011 - Polo Ralph Lauren Offers Complexity

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Polo Ralph Lauren

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

RL EPS Q4 FY 2011

Polo Ralph Lauren (NYSE: RL) shares were down 11% Wednesday, after it reported 36% lower fiscal fourth quarter net income. The $0.74 a share it earned was short of the $0.79 forecast by analysts. The company said the prior year included an extra week, costing it perhaps $0.13 this year. RL also blamed a shift in the Easter holiday, but investors were not listening, since the analysts’ forecasts would have included those factors. Same-store sales increased 7%, and the company forecast first quarter revenue climbing in the mid-20% range. Same-store sales are seen slipping though to a low double-digit rate. RL experienced a narrowing gross margin, as "unprecedented inflationary pressure" plagued it. The entire industry is seeing higher raw materials costs and also increased wage demands in China. This complex report shows that managing volatile supply, i.e. wildly rising cotton prices, offers an uncertainty that can cost investors.



Article should interest American Apparel (NYSE: APP), Carter’s (NYSE: CRI), Cherokee (Nasdaq: CHKE), China Xiniya Fashion (NYSE: XNY), Columbia Sportswear (Nasdaq: COLM), Crown Crafts (Nasdaq: CRWS), Delta-Apparel (AMEX: DLA), Ever-Glory International (AMEX: EVK), Frederick’s of Hollywood (AMEX: FOH), G-III Apparel (Nasdaq: GIII), Gildan Activewear (NYSE: GIL), Hampshire Group (OTC: HAMP.PK), Hanesbrands (NYSE: HBI), Jaclyn (OTC: JCLY.PK), JLM Couture (OTC: JLMC.PK), Joe’s Jeans (Nasdaq: JOEZ), Liz Claiborne (NYSE: LIZ), lululemon (Nasdaq: LULU), Maidenform Brands (NYSE: MFB), Oxford Industries (NYSE: OXM), Perry Ellis (Nasdaq: PERY), Phillips-Van Heusen (NYSE: PVH), Polo Ralph Lauren (NYSE: RL), Quiksilver (NYSE: ZQK), Superior Uniform (Nasdaq: SGC), Tefron (OTC: TFRFF.PK), Warnaco Group (NYSE: WRC), Triumph Apparel (OTC: TRUA.PK), True Religion (Nasdaq: TRLG), Under Armour (NYSE: UA), V.F. Corp. (NYSE: VFC), Wacoal (Nasdaq: WACLY), Zuoan Fashion (NYSE: ZA).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

AEO Q1 FY 2012 EPS - American Eagle Faces Tight Environment

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American Eagle

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

AEO Q1 FY 2012 EPS

American Eagle Outfitters (NYSE: AEO) shares were down about 5% Wednesday, after the company reported revenues fell 6% in its fiscal first quarter. Cost cuts still allowed AEO to nearly triple EPS to $0.14, which was in line with the analysts’ consensus, according to Factset. Revenues missed consensus though by nearly $30 million. Same-store sales fell 8%. While the company indicated sales were a bit better in the second quarter so far, and that it would be making some inventory changes to help sales along, its EPS guidance of $0.10 to $0.13 a share was disappointing against the analysts’ consensus for $0.13.



Article interests investors in: S&P Retail ETF (NYSE: XRT), Wal-Mart (NYSE: WMT), Pier 1 Imports (NYSE: PIR), Ethan Allen (NYSE: ETH), Hooker Furniture (Nasdaq: HOFT), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Apple (Nasdaq: AAPL), Best Buy (NYSE: BBY), The Limited (NYSE: LTD), Chicos (NYSE: CHS), Ann Taylor (NYSE: ANN), The Gap (NYSE: GPS), Macy’s (NYSE: M), JC Penney (NYSE: JCP), Nordstrom (NYSE: JWN), TJX Company (NYSE: TJX), Kohls (NYSE: KSS), Costco (Nasdaq: COST), Target (NYSE: TGT), Wet Seal (Nasdaq: WTSLA), Hot Topic (Nasdaq: HOTT), American Eagle Outfitters (NYSE: AEO), Aeropostale (NYSE: ARO), Abercrombie & Fitch (NYSE: ANF), Saks (NYSE: SAK), Tiffany (NYSE: TIF), Talbots (NYSE: TLB), Lumber Liquidators (NYSE: LL), Builders Firstsource (Nasdaq: BLDR), Fortune Brands (NYSE: FO), Leggett & Platt (NYSE: LEG), Tempur-Pedic International (NYSE: TPX), Acuity Brands (NYSE: AYI), La-Z-Boy (NYSE: LZB), Select Comfort (Nasdaq: SCSS), Sleepy’s (NYSE: ZZ), Furniture Brands (NYSE: FBN), Natuzzi (NYSE: NTZ), Sears (Nasdaq: SHLD), Dillard’s (NYSE: DDS), Bon-Ton (Nasdaq: BONT), Cost Plus (Nasdaq: CPWM), Baker’s Footwear (Nasdaq: BKRS.OB), Bebe Stores (Nasdaq: BEBE), The Buckle (NYSE: BKE), Cache (Nasdaq: CACH), Casual Male (Nasdaq: CMRG), Cato (Nasdaq: CATO), Christopher & Banks (NYSE: CBK), Citi Trends (Nasdaq: CTRN), Collective Brands (NYSE: PSS), Destination Maternity (Nasdaq: DEST), Dress Barn (Nasdaq: DBRN), DSW (NYSE: DSW), Finish Line (Nasdaq: FINL), Footlocker (NYSE: FL), Gymboree (Nasdaq: GYMB), Guess (NYSE: GES), J. Crew (NYSE: JCG), Jones New York (NYSE: JNY), Jos. A Banks (Nasdaq: JOSB), New York & Co. (NYSE: NWY), Men’s Wearhouse (NYSE: MW), Syms (Nasdaq: SYMS), The Children’s Place (Nasdaq: PLCE).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

HRL Q2 2011 EPS - Hormel Faces Challenging Pricing Dynamics

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Hormel Foods

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

HRL Q2 2011 EPS

Hormel (NYSE: HRL) shares were down 5% Wednesday, as the company is having issue managing its pricing along with its rising costs. HRL grew EPS 41% to $0.40, but analysts were looking for $0.41 a share. Meanwhile, the company earned less income on stronger revenues than analysts had anticipated. It looks as though Hormel has not matched its rising costs perfectly, but the cure for its ailment may not be higher prices in a competitive environment. Hormel did raise its guidance, but analysts were already expecting that. The consensus view now for the full year is $1.71, sitting above the center of the company’s guidance for $1.67 to $1.73. In my view, Hormel seems to be executing rather well considering a difficult and dynamic environment, but it appears investors are worried about the environment more than Hormel’s execution.



Article should interest Smithfield Foods (NYSE: SFD), Brasil Foods SA (Nasdaq: BRFS), Tyson Foods (NYSE: TSN), Hormel (NYSE: HRL), Seaboard (NYSE: SEB), Pilgrim's Pride (NYSE: PPC), Sanderson Farms (Nasdaq: SAFM), Industrias Bachoco (NYSE: IBA), Balchem (Nasdaq: BCPC), Zhongpin (Nasdaq: HOGS), Bridgford Foods (Nasdaq: BRID), Sara Lee (NYSE: SLE), Pepsico (NYSE: PEP), Unilever NV (NYSE: UN), Unilever plc (NYSE: UL), General Mills (NYSE: GIS), Kellogg (NYSE: K), Campbell Soup (NYSE: CPB), ConAgra Foods (NYSE: CAG), Mead Johnson Nutrition (NYSE: MJN), J.M. Smucker (NYSE: SJM), McCormick (NYSE: MKC), Green Mountain Coffee (Nasdaq: GMCR), Ralcorp (NYSE: RAH), Del Monte (NYSE: DLM), Corn Products (NYSE: CPO), Flowers Foods (NYSE: FLO), Treehouse Foods (NYSE: THS), Gruma S.A.B. (NYSE: GMK), American Italian Pasta (Nasdaq: AIPC), Diamond Foods (Nasdaq: DMND), J&J Snack Foods (Nasdaq: JJSF), Lance (Nasdaq: LNCE), B&G Foods (NYSE: BGS), Seneca Foods (Nasdaq: SENEB), Smart Balance (Nasdaq: SMBL), Farmer Brothers (Nasdaq: FARM), John B. Sanfilippo (Nasdaq: JBSS), China Marine Food (Nasdaq: CMFO), MGP Ingredients (Nasdaq: MGPI), China Nutrition (Nasdaq: CNGL), Overhill Farms (AMEX: OFI), Omega Protein (NYSE: OME), Key Technology (Nasdaq: KTEC), Tasty Baking (Nasdaq: TSTY), Inventure Foods (Nasdaq: SNAK), Golden Enterprises (Nasdaq: GLDC).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.

TOL Q2 2011 EPS - Toll Brothers Produces Positive Indicators

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Toll Brothers

Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.

TOL Q2 2011 EPS

Toll Brothers (NYSE: TOL) shares were up about 2.3% through late-day trading, after being alone among homebuilders on the positive side in Tuesday’s trade. TOL reported positive data with regard to contract signings, home deliveries and home sales pricing. That forward looking information helped stave off concern about its EPS miss, as the company reported a $0.12 loss per share, against analyst expectations for a $0.04 loss. Based on my experience as an analyst, the operating figure was probably closer to the analysts’ view, especially considering that revenues came in about in line with the analysts’ view. However, the positive indicators were more than enough to support the shares today. Contract signings rose 8%; home deliveries rose 9%; and the average price of newly signed contracts improved 1%. The company also upped its delivery expectations for the year to 2,300 to 2,800, up from the 2,200 it previously said was possible. This verifies much of what we've been writing on the blog regarding our positive outlook for homebuilders this year, despite only marginal growth seen for real estate.

Article should interest investors in Investors Title (Nasdaq: ITIC), Freddie Mac (OTC: FMCC.OB), Fannie Mae (OTC: FNMA.OB), Hovnanian (NYSE: HOV), D.R. Horton (NYSE: DHI), Beazer Homes (NYSE: BZH), Lennar (NYSE: LEN), K.B. Homes (NYSE: KBH), Pulte Homes (NYSE: PHM), NVR Inc. (NYSE: NVR), Gafisa SA (NYSE: GFA), MDC Holdings (NYSE: MDC), Ryland Group (NYSE: RYL), Meritage Homes (NYSE: MTH), Brookfield Homes (NYSE: BHS), Standard Pacific (NYSE: SPF), M/I Homes (NYSE: MHO), Orleans Homebuilders (AMEX: OHB), Vanguard REIT Index ETF (NYSE: VNQ), PNC Bank (NYSE: PNC), J.P. Morgan Chase (NYSE: JPM), Hooker Furniture (Nasdaq: HOFT), Ethan Allen (NYSE: ETH), Pier 1 Imports (NYSE: PIR), Williams Sonoma (NYSE: WSM), Home Depot (NYSE: HD), Lowes (NYSE: LOW), Nasdaq: XNFZX, Nasdaq: FSAZX, Avatar Holdings (Nasdaq: AVTR), Apartment Investment & Management (NYSE: AIV), Equity Residential (NYSE: EQR), Avalonbay Communities (NYSE: AVB), UDR Inc. (NYSE: UDR), Essex Property Trust (NYSE: ESS), Camden Property Trust (NYSE: CPT), Senior Housing Properties (NYSE: SNH), BRE Properties (NYSE: BRE), Home Properties (NYSE: HME), Mid-America Apartment (NYSE: MAA), Equity Lifestyle Properties (NYSE: ELS), American Campus Communities (NYSE: ACC), Colonial Properties (NYSE: CLP), American Capital Agency (Nasdaq: AGNC), Sun Communities (NYSE: SUI), Associated Estates (NYSE: AEC), PennyMac Mortgage (NYSE: PMT), Two Harbors (AMEX: TWO), Simon Property Group (NYSE: SPG).

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.