Archive for the ‘Consumer Discretionary Stocks’ Category

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Syms Corp. (SYMS) shares soar as Board seeks options

Thursday, May 26th, 2011

Syms Corp. (Nasdaq: SYMS) saw its shares surge by 25.9% Wednesday afternoon to $9.38, after the operator of Filene’s Basement stores and its own namesake chain said it has hired Rothschild Inc. to explore strategic options for the company. Volume for the stock topped 148,000 shares, or more than 12 times its full-day average.

The company, based out of Secaucus, New Jersey, said its Board of Directors has initiated a process to explore and evaluate various potential strategic alternatives, which may include a possible sale of the Company. The Company has retained Rothschild Inc. as its exclusive financial advisor to assist the Company in connection with the strategic review process.

There is no defined timeline for this strategic review and there can be no assurance that the review of strategic alternatives will result in any specific action or transaction. Syms does not intend to comment further regarding the evaluation of strategic alternatives, unless a specific transaction is approved or review process is concluded, or it otherwise deems further disclosure is appropriate or required by law.

Management was not available for comment.

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Guess Inc. (GES) Q1 numbers send shares skyward

Thursday, May 26th, 2011

Guess Inc. (NYSE: GES) shares rose 12.2% to $44.99 a day after the clothing retailer reported first-quarter earnings that beat analysts forecasts. Volume for the stock was 4.1 million shares or quadruple its full-day average.

Wednesday, the Company reported net earnings of $42.7 million, a 15.2% decrease compared to net earnings of $50.3 million for the first quarter of fiscal 2011. Diluted earnings per share decreased 14.8% to $0.46, compared to $0.54 for the prior-year quarter. The current quarter’s earnings per share include $0.09 in net unrealized mark-to-market charges related to foreign currency contracts and balances, while the prior-year quarter’s earnings per share included a $0.04 charge related to the acceleration of pension cost amortization.

Revenues jumped across all operating sectors, with Asian revenues increasing 24%, European revenues growing 12%, North American retail revenues surging 5%, and North American wholesale revenues spiking 7%. Total net revenue for the first quarter of fiscal 2012 increased 9.8% to $592.2 million from $539.3 million in the prior-year quarter. In constant dollars, total net revenue increased 7.9%.

Guess CEO Paul Marciano commented, “We are pleased with our first quarter performance, with all of our businesses delivering earnings within or beyond our previous expectations. We continued to expand the global presence of the Guess? brand, with each of our segments growing in the quarter.

“Europe and Asia continued to drive that expansion, individually delivering double digit revenue increases, which combined to represent almost two-thirds of the Company’s top line growth. Our team executed well, managing costs and inventories tightly, which produced an operating margin that was two full points stronger than our previous expectations.”

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Zale Corp. (ZLC) proves a jewel as shares hike

Wednesday, May 25th, 2011

Zale Corp. (NYSE: ZLC) shares jumped 21% to $5.35, after the diamond and jewelry retailer reported third-quarter revenue that beat analysts’ expectations. Volume for the stock was 4.3 million shares, or more than 10 times its daily average.

Zale announced that for the third fiscal quarter ended April 30, 2011, it had a net loss from continuing operations of $10 million, or $0.31 per share, compared to a net loss from continuing operations of $15 million, or $0.46 per share, in the comparable quarter last year.

Revenues for the quarter were $412 million, an increase of $52 million, or 14.5%, compared to $360 million in the same period last year. Comparable store sales during the quarter increased 15.2%, compared to a decrease of 2.2% during the same period last year. At constant exchange rates, which exclude the effect of translating Canadian currency denominated sales into U.S. dollars, comparable store sales increased 14.2% for the quarter.

Zale CEO Theo Killion commented, “We continue to make progress in our multi-year initiatives to return the Company to profitability. Our results validate that the work we’ve done to improve our marketing, our product and our guest experience is beginning to take hold.”

“This quarter marked the second consecutive quarter of positive same store sales,” concurred CAO/CFO Matt Appel. “We are pleased with the trend of improved financial performance resulting from our turnaround initiatives.”

Irving, Texas-based Zale Corporation is a leading specialty retailer of diamonds and other jewelry products in North America, operating approximately 1,845 retail locations throughout the United States, Canada and Puerto Rico, as well as online.

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California Pizza Kitchen Inc. (CPKI) picks up on buyout news

Wednesday, May 25th, 2011

California Pizza Kitchen Inc. (Nasdaq: CPKI) shares rose 9.9% to $18.36 after the Los Angeles-based company said it would be purchased by an affiliate of Golden Gate Capital for $18.50 a share in cash. The deal is valued at $470 million. Volume for the stock Wednesday morning was 14.7 million shares, towering over an all-day average of less than 192,000.

The purchase price represents a 32% premium to the 30-day average price prior to the Company’s Board of Directors authorizing management to begin exploring strategic and financial alternatives on February 23, 2010, and a 15% premium to the 30-day average price prior to the announcement of the transaction. The transaction is currently expected to close in the third quarter of this year.

Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, said, “This announcement represents a very positive outcome for our stockholders and we believe it is also a great development for our employees, guests and business partners.

“We are very excited as we open a new chapter in the very successful history of CPK. Golden Gate Capital is a leading investor in the restaurant industry, with a proven track record as a value-added partner to its portfolio companies, and we believe that its significant commitment and experience in the sector will benefit all of our stakeholders.”

California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain featuring an imaginative line of hearth-baked pizzas, including the original BBQ Chicken Pizza, and a broad selection of distinctive pastas, salads, appetizers, soups, sandwiches and desserts.

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DSW Inc. (DSW) share prices off on right foot

Tuesday, May 24th, 2011

DSW Inc. (NYSE: DSW) shares gained 17.6% to $50.78 after the shoe retailer boasted a stronger quarterly bottom line. Volume for the stock surmounted 235,000 shares, nosing out a daily average around 223,181.

The Columbus, Ohio-based footwear specialty retailer reported net sales increased 12.0% to $503.6 million from $449.5 million in the first quarter of 2010. Net income was $38.4 million, or $0.85 per diluted share on 45.3 million weighted average shares outstanding.

This included charges associated with the pending merger with Retail Ventures Inc. (NYSE: RVI) that impacted first quarter earnings per diluted share by approximately $0.02. This compares to net income of $30.2 million, or $0.67 per diluted share on 44.8 million weighted average shares outstanding, in the first quarter of 2010.

“We have had a strong start to the year, recording double-digit gains in net sales and comparable sales and a 29% increase in operating profit as compared to the first quarter last year, continuing our stellar performance from 2010,” according to CEO Mike MacDonald.

“We attribute our ongoing strength to the successful execution of our key growth initiatives, and the increasing importance and attachment to the DSW brand by consumers. During the quarter, DSW achieved balanced growth across categories and genders with accessories and men’s leading the way. Our new stores performed well and we were also pleased with the growth in our leased business division, which generated its highest quarterly sales in over four years.”

DSW Inc. is a leading branded footwear specialty retailer that offers a wide selection of brand name and designer dress, casual and athletic footwear for women and men, as well as accessories.

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