The Running of the Retailers: Earnings To Watch This Week

It’s no secret that I consider the U.S. consumer to be the primary growth driver for the economic recovery. And following last week’s strong retail sales data, I’ve been keeping an even closer eye on the comings and goings of the nation’s biggest retailers. And while last week a few big names like eBay Inc. (EBAY) and Mattel Inc. (MAT) announced earnings last week, the action really heats up this week for consumer-driven stocks.

Take today for example. Before the opening bell, we saw:

  • Shares of PetMed Express Inc. (PETS), the operator of 1-800-PetMeds, surged 12% after the company announced a 5.5% jump in second-quarter orders and earnings that trumped estimates by nearly 18%.
  • Advanced Auto Parts Inc. (AAP) consolidated nearly 6% after the auto parts retailer lowered its earnings guidance for the third quarter.
  • Hasbro Inc. (HAS) reported a 3.6% drop-off in net earnings due to slower sales in its boys and preschool categories; meanwhile, toy sales in the girls’ category advanced 17%.

While this is just a snapshot of today’s earnings, it doesn’t take much to show that some companies are emerging as winners this earnings season while others will need to go back to the drawing board and do better next time. If you own any big name retail stocks, I don’t want you to get caught up in any potential earnings fallout, so below I’ve listed this week’s high-profile earnings announcements. You’ll see that I’ve included the latest sales and earnings estimates from the analyst community as well as my current recommendation (you can click on the links to take you to each stock’s Portfolio Grader page).

 

Company (Ticker)

Sales Growth Estimate

Earnings Growth Estimate

Industry Average Earnings

Total Grade

Tuesday

Coach Inc. (COH)

10.30%

4.10%

15.90%

Sell

 

Hanesbrands Inc. (HBI)

-0.50%

16.50%

15.90%

Buy

 

RadioShack Corp. (RSH)

-58.30%

-206.70%

28.80%

Strong Sell

 

Tempur-Pedic (TPX)

-5.00%

-23.30%

94.10%

Sell

 

United Parcel Service Inc. (UPS)

1.00%

-2.80%

13.40%

Hold

Wednesday

Crocs Inc. (CROX)

10.00%

30.30%

15.90%

Hold

 

O’Reilly Automotive (ORLY)

5.40%

15.50%

18.20%

Buy

 

Skechers USA Inc. (SKX)

3.80%

47.10%

15.90%

Hold

Thursday

1-800-Flowers.Com Inc. (FLWS)

2.40%

12.50%

28.80%

Buy

 

Aaron’s Inc. (AAN)

9.00%

19.40%

28.80%

Sell

 

Amazon.com Inc. (AMZN)

28.00%

-157.10%

28.80%

Sell

 

Apple Inc. (AAPL)

28.20%

25.50%

46.40%

Buy

 

Cabela’s Inc. (CAB)

10.90%

20.00%

28.80%

Strong Buy

 

Columbia Sportswear (COLM)

-4.50%

-16.70%

15.90%

Hold

As always, I will be covering several of these earnings announcements through this week’s blog posts and Stock of the Day entries. So be sure to stay tuned to this website (and, for my smart phone users, the Stock of the Day app!) as the news breaks on these important announcements.

Sincerely,

Louis Navellier

Louis Navellier

P.S. If you live around Sacramento or Woodland Hills, California, please join me for a free seminar in a few weeks. I’ll be speaking at the Sacramento Marriott Rancho Cordova on October 23, and I’ll be at the Warner Center Marriott on October 24. I will review where investors can achieve the highest yields in both bonds and stocks, as well my current market outlook, favorite stock picks and have an extensive question and answer session. To reserve your spot, please call 800-454-1395 or email [email protected]. For more information, please visit my events calendar here. I hope to see you there!

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