Posts for Ticker ‘SHLD’

The Hardest Working Brands for 2009: The Year Of The Dog

A look at the “hardest working” major brands for 2009 shows that a number of them belong to companies which have done poorly and, in at least one case, may file Chapter 11. This is due to the definition of a hard-working brand, which is based on the ratio of its value to the market capitalization of its parent company.

CoreBrand reviewed the top 100 hardest working brands for the final quarter of 2009.  Their researchers point out that “the food industry moves to the top of the list, reflecting the economy and the general improvement of consumer staples businesses. Hershey’s (HSY), Campbell Soup (CPB), and Kellogg (K) make it into the top 5.” On the other hand “troubled industries like financial services and auto manufacturers have seen dramatic decline.”

Harley-Davidson (HOG) is in the top 10 among the hardest working brands. Before rumors of a buy-out, the motorcycle firm’s stock languished at $25, down from $42 less than two years ago. Harley’s stock trades for a low 1.2 times sales. Also near the top of the list is crippled book retailer Barnes & Noble (BKS), which trades for .3 times sales. Blockbuster (BBI) is in the top 25, with a ratio of .1x sales. The firm said in its 10-K that it is at risk for filing Chapter 11.

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Brand Value And Stock Value: Soft Drinks, Candy, Soap, And Soup

Large consumer companies spend a great deal of marketing money on creating, preserving, and increasing the image of their brands. If a product has problems, the process does not always work. Toyota (NYSE:TM) has found that out the hard way.

A new study by CoreBrand sets values on  the relationships between brand equity and market cap among large American companies and the research points to two conclusions. The first is that iconic brands are critical to the stock market value of the firms that own them. Hershey (NYSE:HSY) ranked first in the CoreBrands study followed by Coca-Cola (NYSE:KO) and Campbell Soup (NYSE:CPB) have spent billions of dollars to build brands which are universally recognized. The second is that weak companies with low market caps may find that their tattered brands make up an especially large part of their fallen share prices. This is probably because their companies are worth so little. Blockbuster (NYSE:BBI) and Harley-Davidson (NYSE:HOG) fall into this category.

The list:

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Wal-Mart (WMT) To Cut Over 11,000 Workers

It is cause for worry when the world’s largest retailer cuts 11,200 people right after a rough holiday sales season. Wal-Mart will fire that many people at its Sam’s Club division.

The warehouse club says it will hire an outside firm, Shopper Events, to handle product demonstrations in the stores. Many of the people who will be fired are part-time workers. Read More »

America’a Most Beloved And Hated CEOs

Glassdoor keeps tabs on employee impressions of management and work conditions at major companies. The survey site has more than one million users who review over 70,000 firms. These companies represent all industries, 100% of the Dow Jones Industrials, and 98% of the Fortune 500.

Glassdoor recently completed a survey which creates what it calls its “CEO Watch List”. It is not surprising that among the firms with detested CEOs are operations that have a history of bad management, layoffs, and investor frustration. Many of the companies also get low marks from the Glassdor corporate rating system.

Dillard’s (NYSE:DDS) has had a history of same store sales declines and layoffs. CEO Bill Dillard II is disliked by his employees. So is Glenn Tilton of United (NASDAQ:UAUA) and Julian Day at Radio Shack (NYSE:RSH), another faltering retailer. In the same category, W. Bruce Johnson at Sears (NASDAQ: SHLD) is held in remarkably low esteem.

The top of the list is filled with companies that have had long successful runs as business and are often led by inspirational CEOs; Steve Jobs at Apple (NASDAQ:AAPL), Gary Kelly at Southwest (NYSE:LUV), and Eric Schmidt at Google (NASDAQ:GOOG). The biggest surprise at the top end of the highest rated CEO list is Lloyd Blankfein of Goldman Sachs (NYSE:GS). He does make his employees a lot of money.

The rest of the list: Read More »

Media Digest 1/15/2010 Reuters, WSJ, NYTimes, FT, Bloomberg

Reuters:   China says there are ways to resolve problems with Google (NASDAQ:GOOG), but the US is uncertain.

Reuters:   Oil fell to $79 over concerns about the US economy.

Reuters:   Intel (NASDAQ:INTC) earnings beat expectations.

Reuters:   Citigroup (NYSE:C) bonuses were similar to 2008 Read More »

Lampert’s Surprise For Sears Holders (SHLD)

Sears Holdings Corporation (NASDAQ: SHLD) has been a significant winner lately even though it has been a very poor retailer for most of its recent history.  But Eddie Lampert’s surprises was that he not only proved to meet our call of “retail stocks to double” from early 2008 double, but it is now a triple after the company disclosed its comparable store sales figures for December that has allowed it to raise earnings guidance.  The strong sales in toys, home and apparel categories, as well as the impact of assuming the operations of its footwear business from a third-party all contributed.
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The 15 Most Hated Companies In America

Customers, employees, shareholders, and taxpayers hate large corporations for many reasons. 24/7 Wall St. has looked at many of these issues to choose the 15 most hated companies in America. We evaluated each company based on five criteria.  First, employee impressions, using research firm Glassdoor and other services, were reviewed.  Second,  we considered total return to shareholders from these companies over one-year, two-year and five-year periods, compared to the broad market and other companies within the same sector. Several firms on our list are not public. Third, customer satisfaction numbers and reputation figures were analyzed from a broad array of sources, including Consumer Reports, JD Power, the MSN/Zogby poll, Vanno, and the University of Michigan American Customer Satisfaction Index were examined. Fourth, brand valuation changes were also reviewed based on data from Corebrands, Interbrand, and Brand Z.  Finally, the views of taxpayers, Congress and the Administration of these companies were considered where applicable. Read More »

Neiman Marcus And Sears Crushed In New E-Commerce Survey

Customer satisfaction with the e-commerce operations at Neiman Marcus and Sears (NASDAQ:SHLD) was particularly bad this shopping season based on research covering the 40 largest US retailers based on internet revenue. The poll results come from a survey of 10,000  respondents who visited the websites in November and December, according to research firm ForeSee.

The e-commerce satisfaction index ForeSee created has a maximum score of 100. Read More »

The Problem With Late Research, Or No Research At All

comScore, which measures online consumer behavior, is among the best companies at analyzing traffic to websites.  comScore also decodes what people do when they get to their online destinations. The value of the data is fleeting, though. The internet is forever changing as the habits of people and businesses using the web move in new directions every day. Some websites lose popularity while others gain it.

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The Renaissance Of E-Commerce (M)(JWN)(AMZN)(WMT)(TGT)

There are bits of research that say holiday e-commerce sales rose in the double digits over the Thanksgiving weekend and did even better on Monday. E-commerce sales have risen as a total percentage of retail revenue since 1995, the year Amazon.com (NASDAQ:AMZN) was founded. Online sales are about 10% of total retail sales at this point. The rumors that growth was dying in the e-commerce industry began to circulate late last year when it became clear that both internet and bricks-and-mortar holiday sales numbers would drop from 2007. Online holiday buying activity had to keep a better pace than store-based sales for the theory of its bright future to hold. The internet has not changed anything meaningful about the American consumer’s basic buying habits otherwise.

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Amazon (AMZN) And Apple (AAPL) Big Black Friday Online Winners

Most people would guess that Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL) would do well this holiday season–better than their respective competitors.

Thanksgiving e-commerce traffic is that the online sales site and consumer electronics paragon have behaved as expected.

According to online research firm Hitwise, “The top visited Retail Website on Black Friday 2009 was Amazon receiving  13.55 % of U.S. visits among the top 500 Retail Web sites.” The Apple Store had the largest increase in visits among the Top Twenty sites, up 110%. Mac, iPhone, and iPod sales may be better than most analysts expect. Read More »

Thursday Earnings Retail Bonanza (DKS, FL, GPS, ROST, SHLD, BKE, PLCE, WTSLA, WSM, ZUMZ)

The earnings season is mostly winding down, but we still have a slew of retail earnings in the apparel and home categories.  On Thursday alone, we have earnings from Dick’s Sporting Goods Inc. (NYSE: DKS), Foot Locker Inc. (NYSE: FL), Gap Inc. (NYSE: GPS), Ross Stores, Inc. (NASDAQ: ROST), Sears Holdings Corporation (NASDAQ: SHLD), The Buckle (NYSE: BKE), The Children’s Place Retail Stores, Inc. (NASDAQ: PLCE), Wet Seal Inc. (NASDAQ: WTSLA), Williams-Sonoma (NYSE: WSM), and Zumiez, Inc. (NASDAQ: ZUMZ).

We have compiled data and analysis here using Thomson Reuters consensus estimates, recent metrics offered by the companies, relative performance, and more.  As with what we have seen at most retail and apparel earnings this week and last, many of these are richly valued and probably cannot just hope to please the bulls by meeting estimates on cost cutting and inventory management and then giving cautious guidance.
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Retail & Apparel Earnings Dominate Next Week (SKS, BJ, GYMB, ANN, DKS, FL, GPS, SHLD, PLCE, WTSLA, ZUMZ)

Bull and Bear ImageIt seems that earnings season is winding down, but next week we have many of the key retail and apparel players reporting earnings.  Saks Incorporated (NASDAQ: SKS), BJ’s Wholesale Club Inc. (NYSE: BJ), Gymboree Corp. (NASDAQ: GYMB), and Ann Taylor Stores Corp. (NYSE: ANN) are all reporting next week.  Next Thursday may feel like a retail and apparel earnings bonanza as we have Dick’s Sporting Goods Inc. (NYSE: DKS), Foot Locker Inc. (NYSE: FL), Gap Inc. (NYSE: GPS), Sears Holdings Corporation (NASDAQ: SHLD), The Children’s Place Retail Stores, Inc. (NASDAQ: PLCE), Wet Seal Inc. (NASDAQ: WTSLA), and Zumiez, Inc. (NASDAQ: ZUMZ) all reporting earnings in one day.

We have provided estimates from Thomson Reuters, recent sale store sales data, share performance, and added color on what else to consider where applicable.
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Media Digest 11/3/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   The value of the yuan could cause a trade war between the US and China.

Reuters:   Executive pensions rose despite drops in stock prices.

Reuters:   Lloyds will make a large stock offering.

Reuters:   Stanley Works (NYSE:SWK) bought Black & Decker (NYSE:BDK) for $3.46 billion.

Reuters:   CIT’s (NYSE:CIT) exit from bankruptcy is not clear.

Reuters:   UBS (NYSE:UBS) posted a loss and wealth management clients continued to leave.

Reuters:   Ford (NYSE:F) posted a surprise profit.

Reuters:   Manufacturing and pending home sales both rose.

Reuters:   Volker said the economy could not rely on consumer spending.

Reuters:   The commercial real estate business is still in deep trouble.

WSJ:   Toyota (NYSE:TM) expects a monthly sales decline.

WSJ:   IllyCaffè SpA will work with local coffee shops to compete with Starbucks (NASDAQ:SBUX).

WSJ:   The head of the IMF says financial firms are going back to old practices.

WSJ:   Blu-ray makers are becoming more involved with web video.

WSJ:   Research-in-Motion (NASDAQ:RIMM) is the focus of a number of bearish comments.

WSJ:   Schwab (NASDAQ:SCHW) is making a push into ETFs.

WSJ:   GM’s board will revisit the Opel sale.

WSJ:   Microsoft (NASDAQ:MSFT) Office faces inexpensive versions of similar software.

WSJ:   Sears (NASDAQ:SHLD) may need to get cash from its Canadian operation which presents challenges.

WSJ:   Problems are beginning to appear in the financials of Chinese banks.

WSJ:   Business bankruptcies rose 7% in October.

NYT:   The US will allow GM to use federal money to put into Delphi.

NYT:   The Supreme Court is looking at fees advisors charge mutual funds.

NYT:   The Senate is pushing insurance companies on the amount of premiums they actually spend on care.

NYT:   Goldman Sachs (NYSE:GS) may buy tax credits from Fannie Mae (NYSE:FNM)

FT:   The Fed has asked banks to adopt it new pay rules early to cover 2009 compensation.

FT:   Ebay’s (NASDAQ:EBAY) PayPal has opened doors to outside developers.

Bloomberg:   The next head of Bank of America (NYSE:BAC) may be based in NYC.

Douglas A. McIntyre

 

Wal-Mart (WMT): More Toy Price Cuts And Big City Dreams

WMTWal-Mart (NYSE:WMT) becomes more aggressive in soliciting new customers and undercutting rivals as each week passes. It has the balance sheet and retail locations to do those things.

The world’s largest retailer recently cut the prices of 100 toys below $10 and brought the price that it charges for popular e-books under $10 to take market share from Amazon (NASDAQ:AMZN).

Wal-Mart knows that this holiday retail season will probably be very weak because of unemployment and lack of access to credit for many consumers, so it is not finished offering bargains to bring in customers. Read More »

Martha Stewart & Kmart Get a Divorce (MSO, SHLD, HD)

Martha Stewart ImageMartha Stewart Living Omnimedia Inc. (NYSE: MSO) has just released a headline titled “Martha Stewart Living Omnimedia Issues Statement.”  Unfortunately, this ’statement’ is that the relationship between Martha and Sears Holdings Corporation (NASDAQ: SHLD) in Kmart is not being renewed.  We suspected something of this magnitude when the The Home Depot, Inc. (NYSE: HD) pact was signed, and that now appears to have been the last straw.
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Retail Job Picture For Holidays Worsens

AnnThere has been some hope that with a modest recovery from the recession that holiday retail sales would pick up this year. Those hopes appear to be premature. The high levels of unemployment and lack of consumer access to credit may make this Christmas season even worse than last.

The difficulties in the retail sector are going to hurt the jobs market, particularly between now and the end of the year. Read More »

Martha Stewart Lands at Home Depot (MSO, HD, SHLD, M)

Martha Stewart ImageHD LogoMartha Stewart Living Omnimedia Inc. (NYSE: MSO) has a new exclusive product lineup partner. We still want to know where Martha will end up after the K-Mart deal she has with Sears Holdings (NASDAQ: SHLD) expires, although a new partnership unveiled today does not specifically address that question and does not sound  “exclusive” despite the term being used.

The Home Depot Inc. (NYSE: HD) announced an agreement today with Martha Stewart Living Omnimedia to develop an exclusive Martha Stewart Living brand of home improvement products.  It was not noted that this will have any impact on the K-Mart agreement and it still notes that Macy’s Inc. (NYSE: M) is one of the many retailers where Martha Stewart products will be available.
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Media Digest 9/7/2009 Reuters, WSJ, NYTimes, FT, Bloomberg

newspaperReuters:   Markets in Asia and Europe were mostly higher with many up over 1%. Cadbury rose on an offer from Kraft (KFT). Rio Tinto (RTP) rose.

Reuters:   Kraft (KFT) bid $16.7 billion for Cadbury.

Reuters:   China Trust bid $2.4 billion for AIG’s (AIG) Taiwasn unit. Read More »

Top Day Trader Alerts (AMD, ARIA, SIRI, SBGI, CHIC, SHLD)

We are seeing several key stocks trading very activiely and at key levels this morning.  These are this morning’s top day trader and active trader alerts, and more detailed price and volume data has been linked to on each stock over at VSInvestor.com:

Advanced Micro Devices Inc. (NYSE: AMD) is up about 5% on this morning’s upgrade from Citigroup.

Ariad Pharmaceuticals Inc. (NASDAQ: ARIA) is running up over 10% after confirming some news in its patent case after this was one of the more active gainers after the close on Friday.

SIRIUS XM Radio Inc. (NASDAQ: SIRI) is trying to make its rally continue for a fifth straight day.

Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) is now up almost 50% in two days if this morning’s gain hold.

Charlotte Russe Holding Inc. (NASDAQ: CHIC) is up 26% on exponential volume after a private equity merger finally came to its front door.

Sears Holdings Corporation (NASDAQ: SHLD) is taking out last week’s lows after Barron’s panned the stock as “Washed Out” on poor earnings.

-The 24/7 Wall Street Team

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