Posts Tagged ‘consumer discretionary’

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Jakks Pacific Inc. (JAKK) jacks price on takeover bid

Wednesday, September 14th, 2011

Jakks Pacific Inc. (Nasdaq: JAKK) shares rose 22.5% to a price of $19.60, a day after Oaktree Capital Management Funds sent a letter to the toy manufacturer offering to acquire it for $20 a share. Volume for the stock measured 3.2 million shares near Wednesday’s close, compared to a daily average of less than 197,000.

A news release dated Sept. 13 stated that the offer represents a 25% premium over the Company’s closing stock price as of September 13, the 30-day average closing price of the Company’s stock leading up to September 13, and the average closing price of the Company’s stock over the preceding 24 months.

Jakks CEO Stephen Berman notified Oaktree this morning that the company board of directors is mulling over the offer.

The Malibu-based Jakks Pacific, Inc. is a leading designer and marketer of toys and consumer products, with a wide range of products that feature some of the most popular brands and children’s toy licenses in the world.

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Conn’s Inc. (CONN) jumps on earnings estimates

Wednesday, September 7th, 2011

Conn’s Inc. (Nasdaq: CONN) shares leapt 33.6% to $7.27 after the electronics and furniture seller projected 2012 earnings above estimates. Volume for the stock topped 926,000 shares, more than triple its daily average.

A news release dated September 7 revealed that the company’s total revenues were $184.4 million, down 13.5% from the same period in the prior fiscal year, on a same store sales decline of 12.8%; However, retail segment retail gross margin increased 320 basis points to 28.9%.

What’s more, adjusted diluted earnings per share were $0.17 for the second quarter of fiscal 2012, excluding the impact of the term loan payoff and store closings, as compared to adjusted diluted earnings per share of $0.06 for the same period in the prior fiscal year, on a higher number of shares outstanding in the current year period.

The Company initiated earnings guidance, for the fiscal year ending January 31, 2012, of adjusted diluted earnings per share of $0.65 to $0.75.

The release quoted Conn’s chairman Theodore Wright as saying, “We are pleased with our progress on improving margins and reducing our cost of capital. While softer industry conditions resulted in sales slightly below our expectations, the changes made to date position us to drive improved profitability.”

The Company is a specialty retailer currently operating 71 retail locations in Texas, Louisiana and Oklahoma: with 23 stores in the Houston area, 18 in the Dallas/Fort Worth Metroplex, eight in San Antonio, three in Austin, five in Southeast Texas, one in Corpus Christi, four in South Texas, six in Louisiana and three in Oklahoma.

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Temple Inland Inc. (TIN) jumps on International buyout

Tuesday, September 6th, 2011

Temple Inland Inc. (NYSE: TIN) shares rallied 25.5% to $30.91 a piece Tuesday after International Paper Co. (NYSE: IP) raised its raised its offer for the shipping-box maker. Volume for Temple topped 27.6 million shares, nearly eight times its daily average.

A news release out September 6 noted that the Memphis-based Temple and International announced that they have entered into a definitive merger agreement under which International Paper will acquire all of the outstanding common stock of Temple-Inland for $32.00 per share in cash, plus the assumption of $600 million in Temple-Inland’s year-end debt. The total transaction value is approximately $4.3 billion.

The combination, which has been approved by the Boards of both companies, offers numerous benefits for the shareholders and customers of both companies, and is consistent with International Paper’s focus on achieving and sustaining cost of capital returns throughout the cycle. The transaction is expected to be accretive to International Paper’s shareholders in year one after closing. It is expected to close in the first quarter of 2012.

Temple-Inland Chairman and Chief Executive Officer Doyle R. Simons was quoted in the release as saying, “this transaction creates value for both Temple-Inland and International Paper shareholders. The combined company will be positioned to be a leader in providing high quality products for its customers.”

Temple-Inland Inc. is a manufacturing company focused on corrugated packaging and building products. The fully integrated corrugated packaging operation consists of seven mills and 59 converting facilities.

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Movado Group Inc. (MOV) moves on profit picture

Thursday, September 1st, 2011

Movado Group Inc. (NYSE: MOV) shares gained 8.5% to $14.93 after the watch manufacturer reported second-quarter profit that topped Wall Street’s expectations. Share volume for the company totaled more than 142,000, nosing out its all-day average of 121,000 shares before noon ET Thursday.

A news release dated Sept. 1, noted that the company, based out of Paramus, N.J., announced net sales in the second quarter of fiscal 2012 increased 32.6% to $113.2 million, compared to $85.4 million in the second quarter of fiscal 2011, driven by growth in every brand category. On a constant dollar basis, net sales increased 25.5% compared to the prior year period.

Gross profit in the second quarter of fiscal 2012 was $60.9 million, or 53.8% of sales, compared to $44.4 million, or 52.0% of sales, in the second quarter last year. The increase in gross margin percentage is primarily the result of leverage gained on certain fixed costs as well as a favorable shift in channel and product mix.

The same release quoted Movado CEO Efraim Grinberg as saying, “We are very pleased with our second quarter and year-to-date performance. Our strategic initiatives coupled with solid execution have continued to benefit our results as we recorded another period of double-digit sales growth while also increasing our profitability.

Grinberg  continued, “While we experienced broad-based sales growth across all of our brand categories, our results continue to be driven by particularly strong performances in Movado and licensed brands both domestically and internationally.”

Movado Group, Inc. designs, sources, and distributes MOVADO®, EBEL®, CONCORD®, ESQ® by Movado, COACH®, TOMMY HILFIGER®, HUGO BOSS®, JUICY COUTURE® and LACOSTE® watches worldwide, and operates Movado company stores in the United States.

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Collective Brands Inc. (PSS) ponders options, stock rockets

Thursday, August 25th, 2011

Collective Brands Inc. (NYSE: PSS) shares rose 19.8% to $12.32 after the parent of Payless and Stride Rite shoe stores said it would explore strategic options. Volume for the stock surmounted 4.8 million shares, or more than double its full-day average.

A news release out August 24 reported that the company, based out of Topeka, Kansas, said that as part of its efforts to optimize the performance of its Payless and Stride Rite store fleet, it would close approximately 475 under-performing and low-volume, non-strategic stores in the next three years with more than 300 of those closings coming by the end of this fiscal year.

The Company estimated that the costs for lease terminations, severance, and other exit costs related to closing these stores could be in the range of $25 million to $35 million.

The release also quoted CEO Michael Massey as saying, “While the second quarter was challenging for the company, we are taking aggressive actions to improve the business.

“In Payless Domestic, we are gaining a much greater understanding of our customers and their needs and expectations. With this clarity, we are taking short term actions to improve our performance, accelerating key initiatives, and adjusting our longer term strategies. At the same time, we will continue to invest for growth and profitability in our Performance + Lifestyle Group and international businesses.”

In the same release, investors could also see that net sales for the quarter ending July 30 increased 4.9% to $882.4 million. The second quarter 2011 net loss attributable to Collective Brands, Inc. was $35.0 million or $0.58 per diluted share. Excluding certain impairment and severance charges, adjusted net earnings attributable to Collective Brands were $9.9 million, or $0.16 per diluted share.

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