Consumer Biz Roundup: General Mills Cuts Guidance, Heinz Earnings
Citing “weak performance across U.S. retail food categories in December and January”, General Mills (NYSE:GIS) cuts FQ3 guidance, FQ3 EPS now expected at $0.54-$0.56. FY2012 EPS revised to $2.53-$2.55 from $2.59-$2.61.
Subsequent to complaints over the dosing system, Johnson & Johnson (NYSE:JNJ) is recalling about 574K bottles of its grape-flavored liquid infant Tylenol in the U.S. Although there have been no adverse effects, it’s the most recent in a series of recalls involving Tylenol and other over-the-counter medications.
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Upscale retailer Nordstrom (NYSE:JWN) guides same-store growth lower and investors decide 12.5% Q4 sales growth isn’t sufficient. However, KeyBanc is remaining confident long term: “Nordstrom looks to accelerate its already extensive multi-channel investments… investing to maintain its leadership and relevance in an increasingly e-commerce focused retail environment.”
Las Vegas Sands (NYSE:LVS) continues to see strong trends in Macau, and believes that investor expectations of 8%-10% Singapore revenue and profit growth over the next few years are indeed realistic. Because of this, and the Las Vegas market’s slow but steady improvement, Goldman Sachs comes away from its meeting with confidence in its bullish stance.
Shoemaker K-Swiss’ (NASDAQ:KSWS) Q4 miss and soft 2012 revenue guidance ($240M-$250M vs. consensus of $269.8M) show the uphill battles it faces in competing with larger rivals Nike (NYSE:NKE) and Adidas (ADDYY.PK). K-Swiss’ Q4 gross margin, at 25.6%, is down 680 bps Y/Y and well below Nike’s FQ2 gross margin of 42.7%.
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Heinz (NYSE:HNZ) reports that FQ3 sales in the U.S. rose just 1.3 % and trailed strong international results from Russia, China and Brazil. HNZ raised prices on its frozen potatoes, sauces and ketchup, causing volume to slip 2% in North America. In contrast revenue abroad spiked 20% and made up 20% of all sales.
Raymond James and RBC both upgrade P.F. Chang’s China Bistro’s (NASDAQ:PFCB) shares, and one reason named was that the operating chief of Kona Grill (NASDAQ:KONA) has agreed to take the same spot at PFCB. Also appreciated by the analysts is PFCB’s efforts to scale its chains down to meet cost-conscious consumers, and they expect to see real results in H2 of this year.
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