Consumer Business Recap: Avon’s C-Suite Change, AT&T Delivers Lumia When No One’s Looking
Disney (NYSE:DIS) sees its price target raised by Deutsche Bank from $48 to $53. The company’s strong positions relative to competitors is noted by analysts, who also point out that Disney trades at a slimmer premium to the S&P 500 price to equity than normal.
Don’t Miss: Is Avon’s Latest Appointment a Major Misstep?
Avon (NYSE:AVP) names Sherilyn McCoy as its new CEO to replace Andrea Jung, and shares slump, but not because of her appointment. McCoy, a veteran of 30 years at Johnson and Johnson, served on its executive committee with oversight over 60 percent of its $65 billion in revenues, and was in charge of consumer brands including Neutrogena, Aveeno, Lubriderm, Clean & Clear and ROC. However, investors might be wary because the timing of her being chosen comes a week following Avon’s turning down a $10 billion takeover bid from Coty. Bernstein opines that this is “a clear sign” that the board “is actively resisting” the offer, and analysts are concerned that Avon “rushed into the decision”.
Sears Holdings (NASDAQ:SHLD) is in the midst of licensing its classic brands Kenmore, Craftsman, and DieHard, and to help the process along hires Leveraged Marketing Corporation of America as its exclusive global licensing agent.
Don’t Miss: AT&T’s Latest Decision a Boon For Rivals.
For reasons that remain unclear, AT&T (NYSE:T) launched Nokia’s (NYSE:NOK) Lumia 900 phone on Easter Sunday. The New York Times made calls to the 39 AT&T stores around Times Square, and found that almost all of them were either closed for the holiday, or didn’t answer their phones, and that the few open stores did not have the phone in stock. Sales of the Lumia 900 were quite weak on Sunday – who would have thought?
Shares of cleaning products manufacturer Zep (NYSE:ZEP) jump on the news that its fiscal second quarter net income increased by 9 percent on strong sales in its retail and distribution channels, and are projected to continue the trend during the first half. Also, Zep beat the nine cents consensus and one of ten cents in the 2011 period, with its earnings of 11 cents per share.
Investing Insights: Zep Cleaned Up in Second Quarter.