Market Overview

Earnings Expectations for the Week of November 28


The holiday shopping season is officially off and running. Though things will be pretty quiet on the earnings front this week, a handful of retailers are scheduled to share the results of their most recent quarters. These include Aeropostale (NYSE: ARO), American Eagle Outfitters (NYSE: AEO), Big Lots (NYSE: BIG), Krispy Kreme (NYSE: KKD), Talbots (NYSE: TLB) and Ulta Salon (NASDAQ: ULTA). But the week's highest profile earnings reports will come from Tiffany (NYSE: TIF) and Kroger (NYSE: KR).


Analysts are looking for purveyor of fine jewelry and other luxury items Tiffany, scheduled to report Tuesday, to post per-share earnings that are 24.6% higher year over year, or $0.61. And for the fiscal third quarter during which the company announced it would increase funding of diamond mines as well as expansion plans into Eastern Europe, revenues are expected to total $802.1 million. That would be an 17.7% increase from a year ago. Analysts so far predict sequential and year-over-year EPS and revenue growth in the current quarter as well. Note that EPS have bested consensus estimates in the past six quarters, by 18.6% in the second quarter. The share price declined more than 7% in the past week but is still about 13% higher year to date. But the stock has outperformed competitors Blue Nile (NASDAQ: NILE) and Zale (NYSE: ZLC) over the past six months.


During the three months that ended in October, Kroger acquired Memphis area Schnucks stores and it approved $1 billion in share buybacks. On Thursday, the Cincinnati-based supermarket operator and food processor is expected to post $0.32 per share earnings for the fiscal third quarter. That would be the same as in the year-ago quarter. Revenues are forecast to be up 9.0% to $20.4 billion. And analysts expect sequential and year-over-year EPS and sales growth in the current quarter. Kroger missed consensus EPS estimates in the second quarter but did not fall short in the previous six months. And it has a long-term EPS growth forecast of 10.2%. Shares have pulled back in recent weeks and the share price is now a couple of bucks higher than the 52-week low. Over the past six months, the stock has outperformed competitors Safeway (NYSE: SWY) and Supervalu (NYSE: SVU) but underperformed Walmart (NYSE: WMT).

Other Retailers

As for other retailers, Express (NYSE: EXPR) is expected to post Wednesday EPS of $0.35 (up 14.3%) on revenue of $487.9 million (up 8.3%). Also on Wednesday, Krispy Kreme Doughnuts is expected to report EPS doubled from a year ago to $0.06 and sales totaled $99.3 million (up 10.9%), while Rue 21 (NASDAQ: RUE) sales are forecast to have surged 20.2% to $197.0 million and EPS rose four cents to $0.33.

Aeropostale and American Eagle Outfitters also are scheduled to report on Wednesday, but analysts anticipate that per-share earnings will be lower than a year ago. The forecast for the former is for EPS down 58.2% to $0.28 and sales down 4.4% to $576.4 million. And for the latter, EPS two cents lower but revenues 4.2% higher to $783.2 million. And for Guess? (NYSE: GES), EPS are also expected to be two cents lower to $0.73 with revenues up 6.7% to $655.2 million.

Ascena Retail (NASDAQ: ASNA), formerly known as Dress Barn, is on deck Thursday. Analysts expect to see EPS of $0.64, which is about the same as a year ago, but revenues that increased 6.9% to $762.2 million. Sporting goods retailer Zumiez's (NASDAQ: ZUMZ) EPS are expected to come to $0.42, two cents higher than a year ago. Its sales forecast is $153.0 million, which is 12.7% higher. Ulta Salon Cosmetics also reports Thursday, and its EPS are predicted to be 39.5% higher to $0.38, while sales rose 19.7% to $406.1 million. And Talbots is forecast to post a $0.16 per share net loss and revenues that declined 9.2% to $271.5 million.

Closeout retailer Big Lots is expected to say in its Friday report that EPS tumbled 60.9% from a year ago to $0.09. Yet, revenues are forecast to be 6.9% higher to $1.1 billion.

And Others

Other companies expected to post year-over-year earnings growth this week include Avago Technologies (NASDAQ: AVGO), Beacon Roofing Supply (NASDAQ: BECN), Copart (NASDAQ: CPRT), La Z Boy (NYSE: LZB) and PVH (NYSE: PVH).

Lower earnings are forecast for OmniVision Technologies (NASDAQ: OVTI), SeaDrill (NYSE: SDRL) and Shanda Interactive Entertainment (NASDAQ: SNDA), while a seasonal net loss is expected from H&R Block (NYSE: HRB).

Posted-In: Aeropostale American Eagle OutfittersEarnings Long Ideas Short Ideas Previews Pre-Market Outlook Trading Ideas Best of Benzinga


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