The unofficial closing bells put the DJIA down 74 points to 12,368.47 (-0.59%), the NASDAQ fell nearly 35 points (-1.24%) to 2,778.79, and the S&P 500 fell -0.74% or nearly 10 points to 1,295.17.

There were several analyst upgrades and downgrades today, including LinkedIn Corp. (NYSE: LNKD) reiterated as ‘buy’ with a target price of $135 at Canaccord Genuity; Dendreon Inc. (NASDAQ: DNDN) started as ‘sell’ at Maxim; Bank of Ireland (NYSE: IRE) cut to ‘sell’ at Deutsche Bank; Phillips 66 (NYSE: PSX) started as ‘buy’ at UBS; and Sprint Nextel Corp. (NYSE: S) raised to ‘buy’ at Guggenheim.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: ANN Inc. (NYSE: ANN) is up 3.25% at $26.69; Brown Shoe Co. Inc. (NYSE: BWS) is up 21.4% at $10.63 (more coverage here); Progressive Corp. (NYSE: PGR) is down -0.1% at $21.32; and Footlocker Inc. (NYSE: FL) is up 8.9% at $30.50.

Next week we are scheduled to get earnings reports fromTech Data Corporation (NASDAQ: TECD); Urban Outfitters Inc. (NASDAQ: URBN); Autozone Inc. (NYSE: AZO); Best Buy Co. Inc. (NYSE: BBY); Dell Inc. (NASDAQ: DELL); PetSmart Inc. (NASDAQ: PETM); Ralph Lauren Corporation (NYSE: RL); Big Lots Inc. (NYSE: BIG); and Hewlett-Packard Co. (NYSE: HPQ) among others.

Other standouts from today include the following stocks:

Renren Inc. (NYSE: RENN) is down -20% at $4.99. The Chinese Internet company is getting whacked on Facebook’s IPO. More coverage here.

GSV Capital Corp. (NASDAQ: GSVC) is down -18.6% at $13.10. The investment company had a nice hunk of Facebook shares at a very low price — all the value is in today. More coverage here.

Zynga Inc. (NASDAQ: ZNGA) is down -16.3% at $6.92 after posting a 52-week low of $6.90 earlier today. Another stock that climbed on Facebook’s back during the run-up to the IPO, shares were stopped by an automatic trigger shortly after FB shares opened today. More coverage here.

Stay tuned for Monday. Atlanta President Dennis Lockhart is giving a speech. We have also noted the following events on the schedule (all times Eastern):

• 10:00 a.m. – Existing home sales
• 10:00 a.m. – Richmond Fed manufacturing index
• 11:30 a.m. – 3- and 6-month bill auctions

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Paul Ausick

The unofficial closing bells put the DJIA down 156 points to 12,442.49 (-1.24%), the NASDAQ fell more than 60 points (-2.10%) to 2,813.69, and the S&P 500 fell -1.50% or nearly 20 points to 1,304,87.

There were several analyst upgrades and downgrades today, including Dell Inc. (NASDAQ: DELL) raised to ‘neutral’ at Sterne Agee; IntercontinentalExchange Inc. (NYSE: ICE) raised to ‘strong buy’ at Raymond James; SINA Corp. (NASDAQ: SINA) raised to ‘overweight’ at Barclays; Visa Inc. (NYSE: V) reiterated as ‘buy’ but removed from Conviction Buy List at Goldman Sachs; Deere & Co. (NYSE: DE) reiterated as ‘buy’ with target price of $96 at Argus.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Bon-Ton Stores Inc. (NASDAQ: BONT) is down -7.3% at $4.09; Dollar Tree Inc. (NASDAQ: DLTR) is down -5.6% at $95.60; E-Commerce China Dangdang Inc. (NYSE: DANG) is down -16.6% at $6.25 (more coverage here); GameStop Corp. (NYSE: GME) is down -10.1% at $18.72 (more coverage here); Sears Holdings Corp. (NASDAQ: SHLD) is up 3.9% at $52.84; and Wal-Mart Stores Inc. (NYSE: WMT) is up 4.7% at $61.97 (more coverage here).

On Friday we are scheduled to get earnings from ANN Inc. (NYSE: ANN), Brown Shoe Co. Inc. (NYSE: BWS), JA Solar Holdings Co. Ltd. (NASDAQ: JASO), Progressive Corp. (NYSE: PGR), and Footlocker Inc. (NYSE: FL).

Other standouts from today include the following stocks:

Rosetta Genomics Ltd. (NASDAQ: ROSG) is down -17.7% at $4.11. The medical diagnostics firm priced a secondary offering this morning. More coverage here.

Dendreon Inc. (NASDAQ: DNDN) is down -11.3% at $7.65. The company’s prostate cancer drug got another challenge from a competing product from Johnson & Johnson (NYSE: JNJ). More coverage here.

MEMC Electronic Materials Inc. (NYSE: WFR) is down -21.4% at $1.68 after posting a new 52-week low of $1.63. The solar component maker lost its CFO today. More coverage here.

Stay tuned for Friday. We don’t have anything on the schedule for tomorrow, but that doesn’t mean that we’ll have a quiet day.

Paul Ausick

The unofficial closing bells put the DJIA up 14 points to 12,921.94 (0.11%), the NASDAQ rose nearly 18 points (0.6%) to 2,988.34, and the S&P 500 rose 0.36% or nearly 5 points to 1,370.87.

There were several analyst upgrades and downgrades today, including Johnson & Johnson (NYSE: JNJ) started as ‘hold’ at Jefferies; Kohl’s Corp. (NYSE: KSS) raised to ‘buy’ at Jefferies; Weight Watchers International Inc. (NYSE: WTW) started as ‘overweight’ (!) at Barclays; D.R. Horton Inc. (NYSE: DHI), Lennar Corp. (NYSE: LEN), and Toll Brothers Inc. (NYSE: TOL) all raised to ‘outperform’ at Credit Suisse; and Arch Coal Inc. (NYSE: ACI) cut to ‘market perform’ at BMO.

Earnings reports since markets closed last night have led to some price changes as of the last half hour of trading today: Alimera Systems Inc. (NASDAQ: ALIM) is down -3.4% at $4.00; Zumiez Inc. (NASDAQ: ZUMZ) is up 5.7% at $34.16 after posting a new 52-week high of $34.44 earlier today; Aeropostale Inc. (NYSE: ARO) is up 2.6% at $19.45; Ann Inc. (NYSE: ANN) is up 6% at $27.36; Carnival Corp. (NYSE: CCL) is down -1.2% at $30.57 (more coverage here); Ferrellgas Partners LP (NYSE: FGP) is down -2.6% at $16.80; Halozyme Therapeutics Inc. (NASDAQ: HALO) is down -1.8% at $11.30; and Uranium Resources Inc. (NASDAQ: URRE) is up 3.1% at $1.00.

Other standouts from today include the following stocks:

Coffee Holding Co. Inc. (NASDAQ: JVA) is up nearly 38% at $10.81. The integrated coffee roaster and distributor posted better-than-expected quarterly results this morning.

Quest Software Inc. (NASDAQ: QSFT) is up more than 24% at $24.09. The firm has agreed to be acquired at $23/share. More coverage here.

Aastrom Biosciences Inc. (NASDAQ: ASTM) is up more than 21% at $2.21. The biotechnology company has completed a private placement of $40 million in Series B convertible preferred stock. More coverage here.

Dynegy Inc. (NYSE: DYN) is down more than -38% at $0.72 after posting a new 52-week low of $0.59 earlier today. A Delaware court ruled that the company had engaged in a “fraudulent transfer” of assets prior to its bankruptcy filing.

Zogenix Inc. (NASDAQ: ZGNX) is down nearly -18% at $2.05. The drug maker posted a wider than expected loss after the markets closed yesterday.

Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) is down nearly -16% at $52.61. The company is being hit hard by yesterday’s announcement from Starbucks Inc. (NASDAQ: SBUX) that it will launch a single-cup espresso and coffee machine to compete with the Keurig products from Green Mountain. More coverage here and here.

Stay tuned for Monday. We have noted the following events on the schedule (all times Eastern):

• 11:30 a.m. – 3- and 6-month Treasury bill auction
• 1:00 p.m. – 3-year Treasury note auction
• 2.00 p.m. – US Treasury budget report

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Paul Ausick

AeroVironment, Inc. (NASDAQ: AVAV) Raised to Buy at Goldman Sachs.
Aetna, Inc. (NYSE: AET) named Bull of the Day at Zacks.
Alcatel-Lucent S.A. (NYSE: ALU) Cut to Sell at S&P Equity Research.
Ann Inc. (NYSE: ANN) Cut to Underperform at Barclays.
Cardinal Health Inc. (NYSE: CAH) Reiterated Buy with $52 price target at Argus.
Comerica Inc. (NYSE: CMA) Raised to Outperform at RBC.
Corning Inc. (NYSE: GLW) Raised to Overweight at Piper Jaffray.
FedEx Corporation (NYSE: FDX) Raised to Buy at BofA/ML.
JAKKS Pacific, Inc. (NASDAQ: JAKK) named Bear of the Day at Zacks.
Macy’s Inc. (NYSE: M) named as value stock of the day at Zacks.
PNC Financial Services Group, Inc. (NYSE: PNC) Cut to Market Perform at BMO.
Polypore International Inc. (NYSE: PPO) Raised to Outperform at Baird.
Royal Dutch Shell (NYSE: RDS-A) Cut to Neutral at Credit Suisse.
Skechers U.S.A., Inc. (NYSE: SKX) Raised to Neutral at Stern Agee.
Teva Pharmaceutical Industries (NASDAQ: TEVA) Cut to Equal-weight at Morgan Stanley.
Under Armour Inc. (NYSE: UA) Reiterated Buy with $90 target at Argus.
Weyerhaeuser Company (NYSE: WY) Cut to Sell at UBS.

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JON C. OGG

Founded in 1983 as a small boutique selling Mexican folk art and cotton sweaters on Sanibel Island in Florida, Chico’s now operates more than 1,200 outlets and boutiques throughout the U.S., selling casual-to-dressy apparel and related accessories under the Chico’s brand, White House/Black Market and Soma Intimates names, catering mostly to women over the age of 35.

Although net sales for the third quarter ended October 29 increased 11.5% year-over-year to $539 million, the Fort Myers, Fla.-based retailer posted quarterly earnings of 16 cents per share, lower than the consensus analyst estimate of 20 cents. Absent traffic, the company was forced to increase promotional activities and offer aggressive discounts to move merchandise, especially at its namesake stores. Gross margin fell 100 basis points to 56% and inventory increased 38% to $247 million.

Though gross margin is forecast to fall 100 to 200 basis points in the fourth quarter (reflecting a need to push-out end-of-year merchandise through discounting), management insists the decline is not related to execution problems. Chief executive officer David Dyer pointed out on the third-quarter 2011 conference call with analysts that the White House and Soma brands “delivered record sales and margins in the third quarter, thanks to a more fashionable mix of lingerie, dresses and beauty.”

“It’s the economy, stupid!” ~ Democratic strategist James Carville

All four brands — from dinner party fashions at Boston Proper to pajamas and “Vanishing Back” bras available at Soma Intimates — are resonating with shoppers, said chief financial officer Pamela Knous on the earnings call. “And I am proud to say,” declared Knous, that the 11.5% increase in sales “represents the tenth consecutive quarter of positive comparables.”

What Knous did not say was that consolidated sales comparables grew only 3.7%. Her double-digit growth comment reflected increases from new store openings — not actual organic growth at locations open more than one year!

Even more troubling, although new traffic was up for the combined Chicos and Soma Intimates brands, which accounted for 66% of quarterly revenue, comparables grew only 0.6%, compared to sales growth of 3.6% last year. Knous said the slowdown reflected the Chico’s customer’s “cautious purchasing behavior in light of continuing uncertain economic conditions.”

“When I see a bird that walks like a duck and swims like a duck and quacks like a duck, I call that bird a duck.” ~ American poet James Whitcomb Riley (1849 – 1916)

Notwithstanding, the Chico’s namesake brand, average dollar sales and transaction counts are supposed to be up across all other brands, according to management. Why, then, will the company not break out segment profit and loss (P&L) statements?

Looking to extend its customer’s experience to intimate apparel, a $13.5 billion market (led by Victoria’s Secret’s commanding 25% share), Chico’s has grown the Soma label from 10 stores in 2005 to more than 200. Given the company’s ambitions are no longer “a secret,” why should the brand’s contribution to P&L still be considered such — unless discount pricing is driving sales growth — and eating into profits?

Management contends that there is space for another specialty lingerie brand. Though sales and profits are sizzling these days at industry bellwether Victoria’s Secret, owned by Limited Brands (NYSE: LTD), the playing field is not level for an upstart like Chico’s: Soma Intimates does not have the real estate. With just one-fifth as many stores, the company cannot similarly leverage product campaigns (do not expect an NBC runway show in primetime anytime soon). Additionally, deep-discounters like Wal-Mart Stores (NYSE: WMT) and Kohls (NYSE: KSS), with respective market shares of 17% and 8%, are battling for the budget-constrained pocketbooks of shoppers (looking for bargains) too. Ergo, Chico’s promulgations of full pricing and fashion parading hand-in-hand at Soma Intimates, in my opinion, is just fantasy talk.

On the earnings call, Nomura retail analyst Paul Lejuez was ignored when he specifically asked Dyer or Knous to detail the P&L impact of Soma Intimates on quarterly income. The company did not return my call seeking comment, too.

Troubling Trends Ahead

There are stormy headwinds blowing toward Chico’s, which management — whether deliberately or blithely — refuses to address:

• “Excluding $3.5 million of non-recurring, after-tax Boston Proper acquisition and integration cost, earnings per diluted share were $0.18 compared to $0.16 last year, a 13% increase,” said Knous. “Our best third quarter earnings per share results since 2006.” If this is Chicos’ best — I’d hate to see “average” performance. The quality of the company’s earnings is suspect. Actual net income year-on-year fell 8.2% to $26.46 million, according to regulatory filings. Share-net income received an artificial boost because actual (weighted) share count outstanding fell by 10 million in the last year due to open-market stock repurchases.
• In total, the company should exit the year at 1,250 stores, an increase of about 8% in square footage. However, in-store inventory is up some 17% per square foot, which suggests a continued reliance on aggressive promotions to push out seasonal merchandise — and a delay in margin turnarounds.
• Further evidence of a disconnect with female shoppers is found in days inventory outstanding (DIO), a performance metric that measures how long it takes inventory to be replaced on store shelves. In the third quarter, DIO rose year-over-year from 73.5 days to 81 days. Part of the cash conversion cycle, an increase in DIO whispers a liquidity crisis could be in the wind, as Chico’s inventory accounts for almost 46% of current assets (of $543.5 million).

“The best offense is having the right product for the customers.” ~ Chicos CEO David Dyer

Management believes that Chico’s has sufficient capital — cash flow from operations and existing cash and marketable securities balances — needed for the 100 (plus) new store openings in 2012 ($100 – 120 million), plus continued investment associated with the Soma brand, store remodel/expansions and cash required for inventory levels associated with this growth. Additionally, the company has no long-term debt and, if necessary, an untapped bank credit-line totaling $70 million.

Cash and equivalents totaling $195 million plus year-to-date operations that threw off $181 million suggest that liquidity should be sufficient to weather more of the same soft retail environment predicted for 2012 (including continued pressure on margins from promotional activities). That said, the company is spending money like a drunken sailor: $212 million acquisition of Boston Proper last fall, $70 million in dividend payouts, $176 million stock repurchases of 13.7 million shares (since August 2010) and the just-announced $200 million new stock buyback program.

Strong quarterly results at Limited Brands and Ann Inc (NYSE: ANN), parent company of Ann Taylor and LOFT brands, demonstrate that even in a weak economy customers will pay “full-price” for the right products. However, in my opinion, the company has overestimated its own pricing power. Consequently, if trouble follows the company into 2013, build-outs planned for Boston Proper and Soma could grind to a halt. As the share price of Chico’s FAS is down some 36% from its 52-week high of $16.60, consensus among investors would be to agree — and flee.

David J Phillips

The unofficial closing bells put the DJIA up more than 25 points to 11,796.23 (0.22%), the NASDAQ fell more than 15 points (-0.60%) to 2,572.50, and the S&P 500 fell 0.04% or about 0.48 points to 1,215.65.

There were several analyst upgrades and downgrades today, including Hewlett-Packard Co. (NYSE: HPQ), which was raised to ‘buy’ at Sterne Agee. Other action included The Coca-Cola Co. (NYSE: KO) started as ‘buy’ at Jefferies; Lennar Corp. (NYSE: LEN) cut to ‘neutral’ at Citigroup; Pepsico Inc. (NYSE: PEP) started as ‘hold’ at Jefferies; and Cree Inc. (NASDAQ: CREE) started as ‘buy’ at Goldman Sachs.

Here are today’s big post-earnings news reactions with prices during the last half-hour of trading: Ann Inc. (NYSE: ANN) is down more than -6.6%, at $23.63; Cost Plus Inc. (NASDAQ: CPWM) is up more than 3%, at $7.88; H.J. Heinz Co. (NYSE: HNZ) is down more than -3%, at $51.06; America’s Car Mart, Inc. (NASDAQ: CRMT) is up more than 10%, at $35.84; Salesforce.com (NYSE: CRM) is down more than -10.5%, at $112.67; and The Bon-Ton Stores, Inc. (NASDAQ: BONT) is down more than -8%, at $2.84, after posting a new 52-week low of $2.70 earlier today.

Several other standouts from today are as follows…

CF Industries Holdings, Inc. (NYSE: CF) is up about 2.9%, at $152.46. The company’s stock got pounded yesterday on news that the corn prices fell, but are recovering a bit today as investors remember that falling corn prices don’t necessarily mean that less corn will be planted and, thus, less fertilizer will be used.

The Mosaic Co. (NYSE: MOS) is up more than 4.6%, at $53.12. Another fertilizer maker that got slammed yesterday and is recovering somewhat today.

Fisher Communications Inc. (NASDAQ: FSCI) is up about 12.7%, at $29.20. The broadcast TV station operator has sold its Fisher Plaza building in Seattle for $160 million in cash to Hines Global REIT, Inc.

Clearwire Corp. (NASDAQ: CLWR) is down nearly -21%, at $1.47. The company is reported to be considering skipping a $237 million debt payment due in two weeks, raising fears that the wireless broadband provider could end up in bankruptcy.

Meritor, Inc. (NYSE: MTOR) is down about -9.7%, at $5.12, after posting a new 52-week low of $5.11 earlier in the day. Shares lost -17% earlier this week when the company lowered its guidance for 2012 and the stock was downgraded today from ‘buy’ to ‘hold’ at KeyBanc.

Marvell Technology Group Ltd. (NASDAQ: MRVL) is up more than ;6.8%, at $14.70. The chip maker reported so-so earnings yesterday, but strong positive statements by analysts at FBR and Citi have turned broken eggs into an omelette.

Stay tuned for Monday. Atlanta Federal Reserve Bank president Dennis Lockhart is speaking in Brazil. Here’s a list of other noteworthy events (all times Eastern):

• 8:30 a.m. – Chicago Federal Reserve Bank national activity index
• 10:00 a.m. – National Association of Retailers existing home sales report

Have a great weekend.

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Paul Ausick

The coming week’s must see events for traders and investors alike in stocks is as follows: AnnTaylor Stores Corp. (NYSE: ANN), Audiovox Corporation (NASDAQ: VOXX), The Beckman Coulter Inc. (NYSE: BEC), Bristol-Myers Squibb Company (NYSE: BMY), Suncor Energy Inc. (NYSE: SU), Canadian Natural Resources Limited (NYSE: CNQ), DineEquity, Inc. (NYSE: DIN), Goldman Sachs Group Inc. (NYSE: GS), Market Vectors Egypt Index ETF (NYSE: EGPT), Internet Capital Group Inc. (NASDAQ: ICGE), OpenText Corporation (NASDAQ: OTEX), JDS Uniphase Corporation (NASDAQ: JDSU), Kinder Morgan Energy Partners LP (NYSE: KMP), Kinder Morgan Management LLC (NYSE: KMR), KV Pharmaceutical Co. (NYSE: KV-A), Lululemon Athletica Inc. (NASDAQ: LULU), Micron Technology, Inc. (NASDAQ: MU), NASDAQ OMX Group Inc. (NASDAQ: NDAQ), Orexigen Therapeutics, Inc. (NASDAQ: OREX), Questcor Pharmaceuticals, Inc. (NASDAQ: QCOR), and finally SIRIUS XM Radio Inc. (NASDAQ: SIRI).

We have outlined the issue underway or the event upcoming, offered color on each, and added in trading data on the shares if applicable.  Again, these are the non earnings events. A detailed earnings calendar with previews is available here.

AnnTaylor Stores Corp. (NYSE: ANN) was up 3.2% at $23.75 on Friday on 150% of normal volume with some 3.75 million shares traded.  What is interesting is that its options volume was off the chart and it was all one-sided call options trading.  It is possible that these were hedged calls, but the volume looked extreme for a sector that is inundated with consolidation.

Audiovox Corporation (NASDAQ: VOXX) turned in an impressive gain in the after-hours session after news that it will acquire Klipsch Group Inc. for $166 million.  Klipsch is a high-performance audio solutions company serving the residential, professional and personal listening markets.  Trading volume in Audiovox was 11,430 shares but the after-hours trading showed a gain of 7.8% to $8.30 versus a 52-week range of $6.17 to $9.74.  Here is where this gets interesting: Audiovox had a market cap at the close of trading of only $177 million.

The Beckman Coulter Inc. (NYSE: BEC) buyout process is nearing an end and we could have more details over its merger this coming week.  We argued before that the premium price should have been close to full value already.  Speculators will run shares higher and everyone hopes that private equity firms will over-pay.

Bristol-Myers Squibb Company (NYSE: BMY) has an FDA panlel review on FEB. 9 where BMS is seeking initial approval for ipilimumab (Imclone’s Erbitux) for patients who have previously received treatment for melanoma. Recent data showed that survival rates were indeed higher and this could be another blockbuster opportunity for the firm if ultimately approved.  We have a formal approval decision date tentatively set for March 26.  The market cap is roughly $44 billion here.

Canada and oil sands for safe defensive oil… Barron’s highlighted Suncor Energy Inc. (NYSE: SU) and Canadian Natural Resources Limited (NYSE: CNQ) and others this weekend.  These are being touted as larger Canadian oil sands project companies that offer safer oil without political tensions and growth ahead.

DineEquity, Inc. (NYSE: DIN) could have Goldman Sachs Group Inc. (NYSE: GS) as a partner.  Reports late Friday showed that Goldman’s private equity arm is close to buying Applebees’ largest franchise holder.  Who would have known that mediocre chain food restaurants would have such an appeal to billionaires.

Agrium Inc. (NYSE: AGU) Removed from TD’s Action Buy List but target raised to $105.
Alkermes, Inc. (NASDAQ: ALKS) Cut to Hold at Jefferies.
AnnTaylor Stores Corp. (NYSE: ANN) Cut to Hold at S&P Equity Research (late Wednesday call).
Apollo Group Inc. (NASDAQ: APOL) Cut to Hold at Stifel Nicolaus; Cut to Underperform at FBR.
The Children’s Place Retail Stores, Inc. (NASDAQ: PLCE) Cut to Neutral at Susquehanna.
D.R. Horton, Inc. (NYSE: DHI) Raised to Neutral at UBS.
Ford Motor Co. (NYSE: F) Raised to Buy at Deutsche Bank.
Greenhill & Co. (NYSE: GHL) Cut to Market Perform at KBW.
J.P. Morgan Chase & Co. (NYSE: JPM) Reiterated Outperform at FBR.
Microsoft Corporation (NASDAQ: MSFT) Target Cut to $28 from $30 at Barclays.
MGM Resorts International (NYSE: MGM) Raised to Outperform at BMO.
PulteGroup, Inc. (NYSE: PHM) Raised to Neutral at UBS.
Seagate Technology plc (NASDAQ: STX) Started as Hold at ThinkEquity (late Wednesday call).
Vodafone plc (NYSE: VOD) Raised to Buy at Nomura.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Zumiez, Inc. (NASDAQ: ZUMZ) is expected to be a winner with same store sales approaching +12.4%, although we already were told about a strong quarter by the company.  Even Abercrombie & Fitch (NYSE: ANF) is expected to show a recovery with gains of 3.6%.  Gymboree (NASDAQ: GYMB) finds itself in an interesting place as it has reportedly now hired Goldman Sachs to explore a sale of the company, but its expected same-store sales in September are expected to be slightly in the red at -0.8%.

As far as which companies are expected to have the largest upward revisions, lululemon Athletica (NASDAQ: LULU) is expected to be the winner with double-digit gains for the quarter.  AnnTaylor Stores Corp. (NYSE: ANN) is expected to come in at the higher-half of its 3% to 9% guidance at 7.3% gains led by its flagship Ann Taylor Stores over the Ann Taylor Loft stores.  The dud is expected to be the troubled American Apparel (AMEX: APP) with a drop of -10% or so.

Retail Metrics noted that teen apparel chains in this back-to-school season were far more promotional and started sales earlier than they had in some time.  The group feels that this helped to drive traffic in August for an upside surprise in that month while sales and traffic in the first half of the month were solid but began to drop off as back to school sales ended.

If you want to know where the continued gains seem to be falling, Retail Metrics noted that the discounter segment ex-WalMart was the leader with an expected gain of 3.7% for Septemner 2010.

The research gives a list of positive catalysts.  September had the best stock market gains in over 70 years, late Labor Day pulled sales into September along with a later back to school season, promotional sales picked up, car sales picked up, Fall Fashion generally looks good, August income and spending rose, select stores talked up sales and many beat estimates.  There were some negative items prevailing as well.  For starters, unepmloyment remains very high, consumer confidence fell, housing remains weak, weather may have been a drag on sales, and credit remains tight.

Most of the retail data will be out by Wednesday and Thursday of this week and it could act as a catalyst for the overall sector.

JON C. OGG

Ann Taylor Stores Corporation (NYSE: ANN) this morning announced with earnings that it has voted to expand the existing share repurchase authorization to $400 million, which the company said results in nearly $260 million currently available under the authorization to repurchase shares.  Its market cap is only $909 million.

Dillard’s Inc. (NYSE: DDS) authorized the repurchase of up to $250 million of its Class A shares in the open market or through privately negotiated transactions.  During the second quarter of 2010, Dillard’s completed all share repurchases under its previous 2007 buyback plan of $200 million. The market cap is $1.44 billion.

Gap Inc. (NYSE: GPS) announced with earnings that it had authorized a new $750 million share repurchase program after ending the quarter with $150 million remaining under the $1 billion share repurchase program authorized in February this year.

Hewlett-Packard Co. (NYSE: HPQ) said last night with earnings that it spent some $2.6 billion in cash to repurchase approximately 55 million shares of common stock in the open market.

Lorillard, Inc. (NYSE: LO) just hiked its dividend to $1.125 from $1.00, but it approved a $1 billion shares buyback plan. Not bad for an $11.4 billion market cap.

Marvell Technology Group Ltd. (NASDAQ: MRVL) announced last night with earnings that its board had authorized a program to repurchase up to $500 million of its outstanding common shares.  It is subject to factors, but this compares to a market cap of $9.6 billion.

Nordstrom Inc. (NYSE: JWN) approved a $500 million stock buyback on Thursday, which came after earlier earnings.  This compares to a $6.8 billion market cap.

RadioShack Corporation (NYSE: RSH) raised the amount under its authorization for share buybacks from $290 million up to $500 million. This sounds great with a $2.4 billion market cap except this means that there are no interested buyers.

Rambus Inc. (NASDAQ: RMBS) last night even set a $90 million accelerated share buyback plan that is effectively being prepaid through JPMorgan.  The company already had an authorization to buy up to 10 million shares of common stocks. Its market cap is $2.1 billion.

You can join our free daily email distribution list to hear more about dividend trends, analyst upgrades and downgrades, top day trader and active trader alerts, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG