BloggingStocks

Before the bell: CAL, DAL, LCC, LTD, RIMM, ETFC, BA

Melly Alazraki — 2008-06-05T08:25:00+00:00

Filed under: Before the bell, Apple Inc (AAPL), Boeing Co (BA), Research in Motion (RIMM), US Airways Group (LCC), Limited Brands (LTD), Delta Air Lines (DAL)

Before the bell: Futures up on oil, Verizon's possible deal, retail sales

Starting with an aggregate of recent airlines news:

Continental Airlines (NYSE: CAL) said it would cut 3,000 of its 45,000 jobs, about 6.5%, and cut capacity 11% in the fourth quarter. The company will eliminate 67 planes and the company's chief executive and president say they will not take a salary for the rest of this year and will decline bonuses.

Delta Airlines (NYSE: DAL) May traffic rose 4.2% from the year-earlier month to 10.51 billion revenue passenger miles. Delta's May capacity increased 1.5% to 12.67 billion available seat miles. Load factor, or the percentage of seats filled with passengers, in May rose to 82.9% from 80.9%.

US Airways Group Inc. (NYSE: LCC) said its May mainline traffic rose 0.6% to 5.39 billion revenue passenger miles from last year. May mainline capacity was flat at about 6.54 billion available seat miles. Mainline load factor in May rose to 82.3% from 81.9% a year ago. It also said Wednesday it is cutting up to 1,100 more jobs, about 3% of its workforce.

Limited Brands Inc. (NYSE: LTD) May same-store sales fell 6%. Analysts, on average, had expected same-store sales to fall 5.5%, according to Thomson Reuters.

E*Trade Financial Corp. (NASDAQ: ETFC) is adding a mobile application -- the first of its kind -- to Research in Motion's (NASDAQ: RIMM) BlackBerry, giving its account holders the ability to see real-time stock quotes and trade on their phones. Again we see the BlackBerry being considered as a more business application, even Apple (NASDAQ: AAPL)'s iPhone tries to be considered as such as well.

Boeing (NYSE: BA) said it received an order for three 737-900ER jets from the Romanian low-cost carrier Blue Air. The order is list-priced at $238.5 million.

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Victoria's Secret trips over 'sexy'

Gary E. Sattler — 2008-05-28T18:00:00+00:00

Filed under: Competitive strategy, Marketing and advertising, Limited Brands (LTD), Small business

If the current rash of courtroom events surrounding Victoria's Secret is what CEO Sharen Turney had in mind when she indicated that the company might have become "too sexy", I think there may be trouble in store for that flagship name of Limited Brands Inc. (NYSE: LTD). I don't know about you, but I find courtroom litigation anything but sexy. Unless of course, we're talking about the assistant district attorneys they cast for Law and Order.

First, Victoria's Secret pulled an 'Atomic Wedgie" on Kentucky couple, Victor and Cathy Moseley, by gaining a court order to block the couple from using a truncated version of The Victoria's Secret name. It's no big deal really because it was fairly obvious that the names "Victor's Secret" and "Victor's Little Secret" were pretty flagrant abuses of a trademarked name which deserves secure protection. The one little triumph which came out of that decade-long legal tussle was that the court determined that plaintiffs in trademark infringement cases do not need to show that the infringement actually cost them money, as revealed in a decidedly not sexy Associated Press news blurb.

Next, we find out that Juicy Couture has grabbed Victoria's Secret by the seat of the pants, regarding alleged product marketing infringement. It seems that Juicy thinks that Vicky has infringed on various aspects of packaging, color schemes and logo placement, as explained by blogger Bruce Watson. Personally, I haven't analyzed the claimed offenses. I'll leave that to the courts. I do however find the whole thing to be a bit blown out of proportion -- and very un-sexy.

Finally, an MSNBC report briefly examines a trademark complaint against Victoria's Secret by Sexy Hair Concepts. In that fight, Victoria's Secret has now launched a challenge against a federal Trademark Trial and Appeal Board ruling in favor of Sexy Hair Concepts LLC. The whole matter centers around the word "sexy" and who has the right to use that word for advertising purposes and/or how it may be used. Victoria's Secret claims that the word sexy does not attach to brand recognition in the minds of but a few consumers, and the company cites a study it conducted of 308 hair product purchasers. Victoria's Secret states that only 5 of the 308 individuals studied, associated the word sexy with a specific company's products. So, I guess "sexy" is fair game for anyone, in a manner of speaking.

I'll tell you my friends, the whole thing is not very sexy to me. If Victoria's Secret's Turney wanted to reduce the company's level of sexiness, she sure got her wish without even trying. All this bickering and finger wagging has really turned me off of the company. In a consumer environment where frilly, lacy and high end garments are low on the priority list, this just isn't the best time for Victoria's Secret to have legal briefs be the only briefs the company is making news with. If Victoria's Secret wants my opinion, right about now a good dose of real sexy is exactly what the company needs. All this courtroom banter is just leaving me out in the cold.

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Earnings highlights: Ford, Hormel, Limited Brands, Intuitive Surgical, PetSmart and others

Trey Thoelcke — 2008-05-25T09:10:00+00:00

Filed under: Earnings reports, Ford Motor (F), Hormel Foods (HRL), Limited Brands (LTD), salesforce.com inc (CRM), Intuitive Surgical Inc (ISRG)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Aeropostale Inc. (NYSE: ARO) posted strong Q1 results on increased same-store sales.
Analog Devices Inc. (NYSE: ADI) reported solid Q2 results and raised its Q3 guidance.
BMC Software Inc. (NYSE: BMC) Q4 results beat estimates and it raised its full-year guidance.
Charming Shoppes Inc. (NASDAQ: CHRS) posted a Q1 loss its worst sales decline in years.
Ford Motor Co. (NYSE: F) warned that it doesn't expect 2009 profit despite some strength overseas.
Gymboree Corp. (NASDAQ: GYMB) reported strong Q1 results due to higher retail sales.
Hormel Foods Corp. (NYSE: HRL) posted solid Q2 results that beat Wall Street estimates by a penny.
Intuitive Surgical Inc. (NASDAQ: ISRG) warned that it might not meet expectations for 2008.
Limited Brands Inc. (NYSE: LTD) disappointing Q1 results were offset by a one-time sale of an asset.
PetSmart Inc. (NASDAQ: PETM) posted weak Q1 results that beat estimates, and offered weak guidance.
Salesforce.com Inc. (NYSE: CRM) reported strong Q1 results that led to analyst upgrades.
Talbots Inc. (NYSE: TLB) restructuring costs and soft same-store sales dragged down Q1 earnings.
Toro Co. (NYSE: TTC) Q2 profits and revenues declined but beat low expectations of analysts.

Additional earnings highlights:
Home Depot, Gap, Lenovo, Air France, Activision, Suntech and others
Hewlett-Packard, Target, Barnes & Noble, Campbell, Staples and others

Upcoming results to watch for include Borders (NYSE: BGP), Polo Ralph Lauren (NYSE: RL), TiVo (NASDAQ: TIVO), Big Lots (NYSE: BIG), Costco (NASDAQ: COST), Dell (NASDAQ: DELL), HJ Heinz (NYSE: HNZ), Sears (NASDAQ: SHLD), Lions Gate (NYSE: LGF), and Tiffany (NYSE: TIF).

Visit AOL Money & Finance for more earnings coverage.

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Wednesday's retail apparel Q1 earnings were mixed

Trey Thoelcke — 2008-05-21T18:40:00+00:00

Filed under: Earnings reports, Limited Brands (LTD)

First quarter results for apparel retailers reporting earnings on Wednesday were mixed, as consumers continue to scale back their spending.

Talbots Inc. (NYSE: TLB) first-quarter profit dropped 69% to 3 cents per share, hurt by noncore operations and restructuring charges. Same-store sales fell 9.8% during the quarter, and revenue fell 5% to $542.4 million, which missed the estimates of analysts polled by Thomson Financial. Shares rose 6% Wednesday to $7.88.

Hot Topic Inc. (NASDAQ: HOTT) first-quarter loss widened to 3 cents per share due to a 2.8% drop in same-store sales. Revenue rose 1.1% to $159 million. Analysts had expected a loss of 4 cents per share on $159.3 million in revenue. Shares fell 13 cents, or 2.6%, to $4.84.

Tween Brands Inc. (NYSE: TWB) first-quarter profit declined on a hefty charge, but results still topped Wall Street expectations. Adjusted earnings per share were 21 cents, and revenues rose to $251.7 million. Analysts had expected 16 cents in earnings per share and sales of $242 million. Total same-store sales decreased 1%. Shares fell more than 10% to $19.20, but rebounded 7.5% in after-hours trading.

Ross Stores Inc. (NYSE: ROST) first-quarter profit grew 19% on growth in same-store sales and a real estate settlement. Adjusted earnings came to 58 cents per share and revenue rose 10% to $1.56 billion; results were in line with analysts' expectations. Same-store sales rose 3%. Shares fell 80 cents to $34.12, before rising 59 cents after hours.

Charming Shoppes Inc. (NASDAQ: CHRS) reported a first-quarter loss of $34.46 million, or 30 cents per share, on its worst sales drop in at least four years. Results included charges related to streamlining of operations and advisory and legal fees. Net sales fell 8% to $641.3 million; analysts had forecast sales of $725.2 million. Same-store sales fell 13%. Shares fell 27 cents, or almost 5%, to $5.37.

Gymboree Corp. (NASDAQ: GYMB) first-quarter net income rose 20%, to 86 cents per share, due to higher retail sales. Revenue rose 16% to $242.1 million. Analysts, on average, had predicted a profit of 84 cents per share on revenue of $240 million. Same-store sales rose 4%. Shares fell 1.5% to $43.77, and continued to fall after hours.

Limited Brands Inc. (NYSE: LTD) first-quarter earnings nearly doubled, to 28 cents per share, on an undisclosed asset sale. Revenue fell 17% to $1.9 billion, in line with analysts' expectations. Same-store sales declined 8%. Shares closed at $18.71, and rose 29 cents in after-hours trading.

Visit AOL Money & Finance for more earnings coverage.

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Before the bell: GM, BKS, LTD, CRM, MSFT, GPS

Melly Alazraki — 2008-05-21T08:35:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), General Motors (GM), Gap Inc (GPS), Limited Brands (LTD), salesforce.com inc (CRM)

General Motors (NYSE: GM) reached an agreement with workers at its Kansas City, Kan., assembly plant Tuesday that could help it end a string of labor problems. The deal could end the strike of 2,500 workers at the factory, which makes the hot-selling Chevrolet Malibu as well as the Saturn Aura, since May 5.

Barnes & Nobel (NYSE: BKS) is exploring a possible bid for rival Borders (NYSE: BGP), according to a report in the Wall Street Journal.

Reporting today: Limited Brands Inc. (NYSE: LTD) which is forecast to post earnings of 8 cents a share in the first quarter and Salesforce.com Inc. (NYSE: CRM), which is forecast to post earnings of 7 cents a share in the first quarter among other companies.

This plan may have been in place long before Yahoo (NASDAQ: YHOO) has rejected Microsoft (NASDAQ: MSFT), but it seems that after that failed too, the software giant is set to announce a new program Wednesday, the Live Search Cashback where it will return money to online users who find and buy selected products through its Live Search engine. Only a portion of the purchase price, of course, between 2-30%. Silicon Alley Insider say it's a great idea that won't work.

Gap Inc. (NYSE: GPS) will introduce its Gap and Banana Republic brands in Russia through a partnership with Fiba Holding AS.

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The week in preview: Smooth sailing ahead

Andrew Horowitz — 2008-05-18T12:10:00+00:00

Filed under: Earnings reports, Google (GOOG), Campbell Soup (CPB), Limited Brands (LTD), salesforce.com inc (CRM)

If you were paying close attention to this column last week, you would have sidestepped some of the pain and misery investors in many of the stocks discussed have suffered lately. Of late, we have seen the general direction of the markets turn positive, even in the face of news to the contrary.

Perhaps it is because investors have an appetite for stocks, since there seems to be few investment alternatives. Real estate is off limits and the yield on bonds and other fixed-income investments is pathetically low.

The theme for the week ahead is SMOOTH SAILING. In this week's column, we delve into some stocks that will be announcing earnings, and that may benefit from the changing tide of investor sentiment. To be sure, there will be several areas of choppiness as we continue to be bombarded by the stormy realities of a turbulent economy.

Monday, May 19

The chart for Campbell Soup (NYSE: CPB) looks M'm M'm good. Sporting a smooth line with nary a ripple over the past 12 months, management has done a great job at keeping both company earnings and share price up, even in the face of significant food inflation. While shares have been condensing during the past few months, recently they have been rising with a series of higher highs and higher lows. Be on the outlook for earnings of 44 cents per share on revenue expectations of $1.89 billion. Now that I think of it. That's a lot of soup wrapped in tin-plated steel -- one of many materials that has seen its price almost double in the past six months.

Excel Maritime Carriers (NYSE: EXM) is part of the shipping industry that has been cruisin'. Shares are up from a September 2006 low of $8 to a recent level of $52. After floating down violently during the first quarter of 2008, shares have made a turnaround, as there are high expectations for the dry-shippers. It is curious how a company with such a massive fleet of ships maintains such extreme profitability with oil prices above $120. Monday will set the course as earnings are estimated to be $1.79 per share for the quarter, up from 61 cents in the year-ago period. This is on revenues of only $61 million for a company that now has a market cap of $1.1 billion. If shares do not meet or beat, watch out below!!

While we are out at sea with the shippers, the big daddy DryShips (NASDAQ: DRYS) will be coming in with its quarterly numbers after the close. Expectations are running high, and First Call is estimating $4.05 per share, which is a 400% increase from the same period a year ago. The shares have a classical chart formation of a double-bottom with a break above the mid-term resistance. This bullish pattern has had all the makings of a solid run but may hit overhead resistance at this level. (Sorry I can't go into more depth on chart pattern recognition here, but if you're interested in learning more, you could read Chapter 3 of my book, The Disciplined Investor: Essential Strategies for Success.)

Tuesday, May 20

On the sundeck, silicon wafers are drawing in the sun's energy and converting it to a more usable form by products made by China Sunergy (NASDAQ: CSUN). Analysts do not predict that the company will be profitable this quarter, but that does not seem to matter these days as shares are being bid up 50% from a recent consolidation point of $8. Look for an announcement showing a loss of 5 cents per share on $73 million of revenue.

After coming back from a long cruise, many people have thought of going back to living in a factory-built, modular home but did not know where to go for that special touch. Good news, as Palm Harbor Homes (NASDAQ: PHHM) might actually have the answer. Yet, shares have been watered down of late as the housing market has been difficult on all components within the sector. Yes, even the luxury modular home companies. Interestingly, analysts are seeing a loss approaching 34 cents per share on $123 million of revenues.

Wednesday, May 21

When the economy enters a time of recession, shoppers look for bargains. BJ's Wholesale Club (NYSE: BJ) may have just the right bait to bring in the fish as they have 177 warehouse shopping stores in 15 states with a total of 8.8 million members. Sales have been consistent and earnings growth has been strong. With little debt and a chart that is showing a strong base, this could be a winner during this wave of the economic cycle. Watch the earnings release for clues as to the near-term direction. First Call is showing a 27 cents EPS for the period on huge revenue of $2.26 billion.

Ever since Google (NASDAQ: GOOG) announced a partnership with Salesforce.com (NYSE: CRM), the tide has been rising for shares. Making new highs on a regular basis, Salesforce has one of the best online contact management solutions available for companies of any size. In the ultimate battle for the desktop over the webtop, Salesforce is a force to reckon with. The company has quarterly earnings expectations of 7 cents, which is sevenfold higher than last year, and revenue that is expected to grow to $235 million for the period. I suppose that is what happens when a company has no competition and a great product.

There will be plenty of other announcements today in the retail sector that will be watched carefully for further clues on the consumer and the general economy. Take note of the following as there has been a good deal of negative sentiment towards this sector:

Dillards (NYSE: DDS) $0.21 EPS on $1.71 billion of revenue
Hot Topic (NASDAQ: HOTT) -$0.04 EPS on $159 million of revenue
Limited Brands (NYSE: LTD) $0.08 EPS on $1.90 billion of revenue
Charming Shoppes (NASDAQ: CHRS) -$0.06 EPS on $725 million of revenue
Ross Stores (NASDAQ: ROSS) $0.58 EPS on $1.55 billion of revenue
Saks (NYSE: SKS) $0.16 EPS on $840 million of revenue

Thursday, May 22

The day is loaded with more retail announcements. The ones to watch include:

AnnTaylor (NYSE: ANN) $0.46 EPS on $593 million of revenue
Bon-Ton (NASDAQ: BONT) -$2.25 on $715 million of revenue
Stein Mart (NASDAQ: SMRT) -$0.04 EPS on $366 million of revenue
Aeropostale (NYSE: ARO) $0.25 EPS on $327 million of revenue
Gap Inc. (NYSE: GPS) $0.31 EPS on $3.43 billion of revenue
Pacific Sunwear (NASDAQ: PSUN) -$0.10 EPS on $265 million of revenue
Zumiez (NASDAQ: ZUMZ) $0.03 EPS on $78 million of revenue

Also look for the earnings from poultry producer Sanderson Farms (NASDAQ: SAFM). The company has been doing well, even into rising corn and feed prices. Estimates are for a loss of 7 cents on $435 million of revenue. Investors may get chicken if they see that the margins have been watered down this quarter. Even so, the balance sheet is strong and the outlook is stable.

Disclosure: Horowitz & Company clients may hold positions in some of the stocks mentioned as of the publish date.

Andrew Horowitz is a money manager and author of The Disciplined Investor: Essential Strategies for Success.

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Before the bell: UL, COST, WMT, LTD, CROX, HANS, MSFT ...

Melly Alazraki — 2008-05-08T08:25:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Wal-Mart (WMT), Hansen Natural (HANS), Costco Wholesale (COST), Amer Intl Group (AIG), Limited Brands (LTD), Crocs Inc (CROX), Unilever ADR (UL)

Before the bell: Stocks could bounce back; retail sales, TM, BBY on tap

Unilever (NYSE: UL) is the world's second-largest maker of food and detergent, so you would expect the company to hurt with rising commodity prices. But Unilever has been proactive and has raised prices 4.8% in the quarter to offset its rising costs. In fact, the company said revenue will beat its forecast for the first time in six years on increased prices and sales of Dove soap, Hellmann's mayonnaise and Lipton tea. First-quarter net income climbed 33%, exceeding analysts' estimates.

As expected, April retail sales have so far indeed been strong, although there are some ares weakness is seen.

Costco (NASDAQ: COST) shares are up 1.2% in premarket trading after the warehouse club retailer said April same-store sales increased 8%, beating analysts' expectations of 6.1%.
Wal-Mart Stores Inc. (NYSE: WMT) shares are also higher in premarket trading, up 1.8%, after the world's largest retailer, said same-store sales climbed 3.2%, beating the 2.1% forecast by analysts. Staying with Wal-Mart for a moment, it said it plans to invest millions in Canada and open more supercenters.
The more luxurious items, though, such as lingerie sold at Limited Brands (NYSE: LTD) have seen a slowdown as the company said that April same-store sales fell 5%, falling short of the 2.3% sales decline analysts had anticipated.

There was also some good news from Crocs Inc. (NASDAQ: CROX), which reported better-than-expected quarterly results after the close Wednesday with revenue climbing 40%. The plastic shoe maker affirmed its second-quarter and 2008 outlook and seen its shares jump 16% in premarket trading.

Meanwhile, as Microsoft Corp (NASDAQ: MSFT) keeps telling us it has no plans to make another approach for Yahoo Inc (NASDAQ: YHOO) after it pulled the plug on its $47.5 billion bid earlier this month, some say it could be interested in increasing its stake in Facebook.

In more earnings news: AIG (NYSE: AIG) is expected to report a first-quarter loss of 76 cents a share, when it reports after the close today. But Hansen Natural (NASDAQ: HANS) has already reported disappointing results after Wednesday's close and is seeing its shares fall 18% in premarket trading.

And Apple? That company isn't resting and Wednesday it signed a deal with America Movil SAB to bring the iPhone to Latin America.

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Cheeky! Juicy Couture slaps Victoria's Secret with a lawsuit

Bruce Watson — 2008-05-07T18:16:00+00:00

Filed under: Law, Limited Brands (LTD)

A few years back, The Onion ran a spoof article in which it claimed that Microsoft was trying to copyright ones and zeros, in an attempt to corner the market on binary code. Of course, the problem with satire is, just when you think you've hit the jackpot on ridiculousness, reality trumps you.

Recently, Juicy Couture Inc. filed a lawsuit against Victoria's Secret, claiming that the lingerie giant had stolen many of its marketing gimmicks and design features. Among other things, Juicy stated that Victoria's Secret had copied:

Juicy's packaging, which resembles candy (Lingerie disguised as candy?!? Didn't Spencer's Gifts come up with this idea somewhere around 1978?).
Juicy's most popular color scheme, which revolves around the color pink (Pink? For girls? Clearly, Juicy's designers are underappreciated revolutionaries!).
Juicy's most popular design, in which its logo is emblazoned across the backside of the wearer (I wonder if Juicy's next step will be to go after all the lower-back tattoo wearers out there. Tramp-stampers, beware!).

While Victoria's Secret (a subsidiary of Limited Brands, Inc.: NYSE: LTD) may well be guilty of plundering the ideas of others (in particular, Katerina Plew, whose lawsuit seems to have a little more merit), it seems like Juicy is getting a little ridiculous. Intellectual property is all well and good, but is it legitimate to copyright the color pink?

Still, as a luxury item, lingerie is probably not selling all that well right now. Maybe Juicy needs the dough?

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Sunday Funnies: World awash in supermodels

Sheldon Liber — 2008-03-09T13:10:00+00:00

Filed under: Wal-Mart (WMT), Limited Brands (LTD), Sunday Funnies

One of our more commented-on stories, We're too sexy ... per Victoria's Secret's CEO, received some very funny ones. The best one, that I thought showed the wildest mis-characterization of the worlds population, was "supermodels only make up 7% of the world."

Obviously a few decimal places were left out, otherwise we would have 500 million supermodels. I'm not sure anyone has an exact count, but the number is likely less than a hundred, perhaps two. However, this might explain the rash of UFO sightings -- beings from other planets surely would be eager to travel from light years away to do 'meet and greets' in a world where better than 1 in 15 people were supermodels!

I don't know how our readers are doing with their investments, but there are some that clearly need to get a grip on percentages. The following gem of a coment was sent to my colleague Zac Bissonnette's after his post: Congress grills overpaid executives:

"I personally do not feel that any CEO of publicly traded company should receive more than 300% of the lowest paid permanent employee. Private companies they should receive what ever they can."

This well-thought-out comment would have Wal-Mart's CEO, who manages a $100 billion dollar company, earn $60,000 per year, since some clerks are earning in the neighborhood of $20,000. Of course that would be less than some store managers are now making. But at least we would be confident that Wal-Mart does truly have the cheapest prices. And think of the private company CEO who made $1 million pre-IPO finding out what the new pay scale would be like. This might slow the rush to go public just a tad.

If you have come for true amusement, you should hear and see: Ode to TECH-bubbles: YouTube at its best!

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money.

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Wal-Mart, other retailers report better-than-expected same-store sales

Eliza Popescu — 2008-03-06T09:57:00+00:00

Filed under: Wal-Mart (WMT), Costco Wholesale (COST), Economic data, Limited Brands (LTD)

With recession fears, housing market worries and credit concerns, retailers have been facing tough times, especially during the holiday winter season of December and January when sales came with weak numbers. But on the heels of these disappointing results, retailers got a beam of hope as February's sales numbers showed a surprising increase.

Encouraging news for retailers showing a rebound in consumer spending during the past month came after world's largest retailer Wal-Mart Stores Inc. (NYSE: WMT) announced a rise of 2.6% for its February same-store sales. The company said that its same-store sales during the period were helped by strong gains from gas, food and flat-panel TVs. Analysts were expecting the retailer show an increase of 1.1% for its same-store sales, according to Thomson Financial.

Among other retailers that showed a rebound in February sales were Costco Wholesale Corp. (NASDAQ: COST) and Saks Inc. (NYSE: SKS), both of which reported stronger-than-expected gains. Apparel retailers Pacific Sunwear of California Inc. (NASDAQ: PSUN) also reported earnings results exceeding estimates of 6% sales growth last month.

For Limited Brands Inc. (NYSE: LTD), though, February didn't come with positive results. The company stated that higher energy and food prices put pressure on consumers who focused on necessities.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

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Before the bell: WMT, LTD, TMA, GSK, DIS, BBI ...

Melly Alazraki — 2008-03-06T08:18:00+00:00

Filed under: Before the bell, Apple Inc (AAPL), Wal-Mart (WMT), Walt Disney (DIS), Blockbuster Inc 'A' (BBI), Limited Brands (LTD)

Before the bell: Futures decline with the dollar (HRB, MOT, UBS)

Wal-Mart Stores Inc. (NYSE: WMT) shares are trading over 1.1% higher in premarket trading after the discount retailer reported that same-store sales rose 2.6% in February due growth in grocery, electronics and health items. Analysts expected a 1.1% increase according to Thomson Financials. The overall weak sales trend, however, continued into February and shows no sign of improvement.

While discount retailers and wholesale clubs expected to do better, most retail stores were expected to do worse. For example, specialty retailer Limited Brands Inc. (NYSE: LTD) reported that same-store sales fell 9% in February, a smaller drop than the 11% analysts were expecting. While sales fell 10% at Victoria's Secret, they rose 1% at La Senza. Total sales fell 16% and the company expects March to show much the same results.

Meanwhile, Thornburg Mortgage Inc. (NYSE: TMA) is dropping over 58% in premarket trading after it disclosed Wednesday that it failed to meet a $28 million margin call, causing a series of cross-defaults.

Walt Disney Co. (NYSE: DIS) will team up with Toei Animation Co.and several other Japanese companies to produce animation for television in Japan, a leading market, according to unnamed sources at Disney.

GlaxoSmithKline (NYSE: GSK) earned a slap on the wrist, but nothing more, after Britains' Medicines and Healthcare products Regulatory Agency declined to press criminal charges against the drugmaker for "not quickly releasing data on increased suicidal risk in patients under 18 who used its Seroxat antidepressant drug."

Blockbuster Inc. (NYSE: BBI) is expected to report earnings of 17 cents a share in the fourth quarter. BBI should report before the market opens Thursday.

A new Apple Inc. (NASDAQ: AAPL) iPhone rumor has surfaced, as Robert Scoble posted on this: Apparently, despite Steve Jobs saying otherwise, some claim to have worked Adobe Flash on their iPhones.

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We're too sexy ... per Victoria Secret's CEO

Sheldon Liber — 2008-02-28T16:20:00+00:00

Filed under: Major movement, Management, Rants and raves, Marketing and advertising, Limited Brands (LTD)

In a short story in the Wall Street Journal [subscription required], Sharen Turney, chief executive of of Victoria's Secret, confided during a conference call that the lingerie chain may have gotten off track at some point and may now be just too sexy.

Can there be such a thing as too sexy? There are times you can be too trashy, or too slutty, but can you be too sexy? I think not!

It may be that some of the advertisements on television are inappropriate for the time-slot. It may be that at times the ads are viewed like soft porn and teenage boys are the first to peruse the monthly mailing. But too sexy? That is a very strange comment coming from a company that has made a reputation for itself and pushed sales growth for years based on a foundation of sex appeal.

The Victoria's Secret chain is a division of the Limited Brands Inc. (NYSE: LTD) and Turney said she wants to bring a more sophisticated image back to the product line - hmm. I wonder if this is just a smoke screen to avoid criticism by conservatives in an election year.

I can just hear the discussion in the board room: "There are some folks that think we have gone too far, and that we present an image that is just too darn sexy. All those in favor of being less sexy raise your hands"

This just does not seem possible, does it? LTD closed yesterday at $17.82 but is down over 9% in midday trading. Maybe Wall Street traders prefer more sexy, not less?

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UPDATE: LTD closed at $15.85 down $1.87.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I do not own shares of LTD.

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