Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Ticker Shock: J. Crew, Dillards Post Disappointing Results

By

Wednesday's top stories and stocks with potential to move.

PrintPRINT


We made it 3 in a row yesterday. Now let's go for 4!

Turkey day tomorrow!

Asian markets seemed mixed. The Hang Sang rose over 3% while the Nikkei was off more than 1%. Europe, however, was showing me some red. And here in the States we are off to a lower open.

Here's what I'm seeing today…

J. Crew Group (JCG)
After the close on Tuesday the retailer disseminated its third quarter numbers.

The good news was that the company earned 30 cents a share, which was 4 cents north of expectations. However, the bad news is that it's looking for $1.11 to $1.16 a share for fiscal 08'. That's well below the $1.44 to $1.54 guidance it previously offered up in conjunction with its second quarter numbers.

I hate to say it, but I think the stock gets hit pretty hard on this news. And no, I'm not nibbling here. I don't see a reason yet.

I should point out, however, that the insider data on Yahoo Finance seems to show a purchase of 10,000 shares back in August.

Tiffany & Co (TIF)
The ritzy jewelry retailer offered up its third quarter numbers before the open today. The company put up 35 cents a share whereas the Street was at 25 cents – sparkling…

On the flip side, however, management indicated that it's looking for full year EPS of $2.30 to $2.50. And that's an issue because analysts were apparently at $2.58.

Look, I think the stock could see some weakness on this news. However, I do like the company for the long run. I also want to point out that I like its overseas exposure.

Bottom Line: I'd much rather be here than, say, Zale (ZLC).

Deere (DE)
The well-known agricultural equipment maker was out early this morning with its fourth quarter numbers. It earned 81 cents a share in the period. At first blush, however, it looks like the results included a charge for a factory shutdown. The Street was at 99 cents.

I thought the big news was its comments about 09'. In the release, the company said it's looking for net income of about $1.9 billion. According to the AP, "analysts predict 2009 profit of $2.32 billion."

Needless to say, I think the stock gets hit on this news. However, I do want to keep an eye on the shares because I still believe the company has lots of longer-term promise. If they come down to $25, I plan on revisiting the story.

Dillards (DDS)
The Arkansas based retailer put out its third quarter numbers today. The shares have already gotten slammed this year. Unfortunately, I think they could come down some more.

Excluding items by my math, it posted a loss of 64 cents a share. The Street was expecting a loss of 57 cents. Meanwhile its comp store sales were off a pretty hefty 9%.

Long story short, Dillards isn't sitting idle. According to the release:

"Capital expenditures in 2009 are expected to be approximately $120 million compared to approximately $192 million in 2008 primarily as a result of dramatically reduced store opening activity."

The company also announced job cuts.

Still, I'm just not inspired to bottom fish here. Sorry DDS bulls, but I think that there are better opportunities out there.

Have a great day and Happy Thanksgiving!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE