(By Arun - iStockAnalyst Writer) The very first sector to sneeze when the flu begins has already shown enough signs of weakening in the weeks that have passed by, but we have a few more of them who are waiting to sink in more bad news in an already ailing market in the coming days. Here is a closer look at a few retailers reporting this week.
Pacific Sunwear of California (NASDAQ: PSUN) is due to report its third quarter earnings after market close today. The stock has plummeted more than 90% this year, and has provided a guidance to be in the red this quarter. Total PacSun sales for the fiscal third quarter of 2008 were $323.6Mn, a decrease of 5% from total PacSun sales of $341.8Mn during the same period last year. PacSun same store sales decreased seven% during the same period. This quarter the company rejected a takeover offer from apparel and equipment maker Adrenalina. The company expects to post a loss of 7 cents to 8 cents per share, including a non-cash impairment charge of 6 cents per share, in the quarter ended Nov. 1. The company also said the result would be hurt by 3 cents per share due to a change in its estimated tax rate. As of November 1, 2008, the Company operated 815 PacSun stores and 125 PacSun Outlet stores for a total of 940 stores in 50 states and Puerto Rico.
Earnings Estimates
Current Estimates: ($0.01)
Number of Estimates: 11
High Estimate: $0.02
Low Estimate: ($0.08)
Last Year EPS: $0.16
Percentage Growth: -109.00 %
Phillips-Van Heusen Corporation (NYSE:PVH) too is reporting its third quarter this evening. Here is another in the lot for whom it has been a very disappointing quarter. There hasn’t been any remarkable moves the company made in the quarter. The management has decided to tap on e-commerce. In late August Calvin Klein, Inc., a wholly owned subsidiary of Phillips-Van Heusen announced the launch of the much-anticipated e-commerce component to the company's existing branded website at calvinklein.com. The on-line store will be supported with integrated on-line and off-line advertising programs that are customer-centric, and innovative, and will include the web address on all future print advertising. Additional marketing and promotional efforts will be implemented seasonally to drive traffic to the site and engage consumers. The management also announced some promotions in Calvin Klien- Tom Murry, who has been with the company for more than 11 years, has served as the company's President & Chief Operating Officer for the last six years and will now serve as the President & Chief Executive Officer of Calvin Klein, Inc. Melisa Goldie has been promoted to the position of Executive Vice President & Chief Creative Officer, CRK Advertising. The guidance as was provided in its last quarter for the third quarter, Revenues were expected to be $730Mn to $740Mn in 2008, or an increase of 5% to 6% over the third quarter of 2007.
Earnings Estimates
Current Estimates: $1.06
Number of Estimates: 7
High Estimate: $1.12
Low Estimate: $0.97
Last Year EPS: $1.05
Percentage Growth: 1.00 %
La-Z-Boy (NYSE:LZB) is set to report its right-sized earnings reports this evening. The company recently announced that they are undertaking a restructuring activity, as a part of a 10% staffing reduction that will cut 850 employees companywide due to slumping business. Other measures include closing 15 to 20 La-Z-Boy Furniture Galleries stores, primarily dealer-owned, over the next 90 to 120 days, due to tightening of the credit markets; reducing capital expenditures from about $27Mn to $18Mn to $20Mn, and cutting overall operating expenses and inventories.
