Posts for Ticker ‘HLYS’

Heelys Still Warning & New Lows (HLYS)

Heelys, Inc. (NASDAQ:HLYS) is being punished, again, in after-hours trading because of an earnings warning.  The Company currently expects net sales for the third quarter to be approximately $49 million compared to its previous guidance range of $55 to $58 million, and earnings per diluted share for the third quarter to be in the range of $0.22 to $0.23 versus the prior expectation of $0.28 to $0.30.

These CEO comments pretty much say it all.  Mike Staffaroni, President & CEP said, “Throughout the third quarter we took a number of steps to reduce the amount of inventory in our current domestic distribution channels, including increasing our national advertising and providing additional markdown assistance. While we appear to have made some important progress, the difficult retail environment over the past several months resulted in higher than anticipated order cancellations, increased promotional activity and rescheduled shipments, all of which negatively impacted our net sales and earnings. We continue to believe in the long-term prospects of our brand and products; however over the near-term, we expect that our business will remain challenging.”

It looks like the new video game inspired shoes aren’t going to help it yet.  Shares are now down 10% at $7.55 in after-hours trading and it has a $7.65 to $40.09 trading range since its IPO.  This looks like a new all-time low if these levels hold. 

Jon C. Ogg
October 24, 2007

Posted on: October 24, 2007 – 4:00 pm in Apparel, Earnings Warning, ,

Heelys Blows The Tires Off (HLYS)

If you’ve ever heard shoes referred to "wheels" in slang that isn’t really slang for Heelys Inc. (NASDAQ:HLYS), which makes the wheeled shoes for kids.  This was a fairly hot IPO for a brief period and there was some cool product buzz.  Unfortunately it was a flameout and the stock imploded after coming public.  Inventories had been up and previous guidance wasn’t exactly what investors in hot post-IPO’s look for.

Today, the company has launched its ‘non-wheeled’ line of shoes.  So these are just regular shoes.  Heelys is already in apparel, bags and accessories, so this is not exactly the first ‘first’ for the company.  This launch is called the Gamer by Heelys. The new Heelys Gamer shoe embraces a favorite American pastime by featuring a simulated game controller on the outsole of the shoe.  This was demonstrated in July at the World Series of Video Games.  This will hit stores in November for pre-holiday sales.  If you want to see the demo you can see the design at http://www.heelysgamer.com.

Shares are up 8% pre-market at $10.60.  The trading range since the IPO has been $7.65 to $40.09. As of the end of September, Heelys had over 2.3 million shares listed in its short interest (about 10 days to cover).
Barron’s also pointed to risks in this early on.

Jon C. Ogg
October 17, 2007

Posted on: October 17, 2007 – 8:07 am in Apparel, ,

Pre-Market Analyst calls (August 8, 2007)

ACLS raised to Equal Weitght at Lehman.
AEG cut to Peer Perform at Bear Stearns.
ALXN cut to Neutral at Credit Suisse.
CSC raised to Hold at Jefferies.
CSCO raised to Outperform at Bear Stearns.
DKS cut to Hold at Citigroup.
ENN raised to Outperform at Baird.
GNEt started as Buy at Oppenheimer.
GNW raised to Buy at UBS.
HLYS downgraded at JPMorgan, Wachovia, Baird, CIBC.
HS started as Neutral at B of A.
IPGP raised to Overweight at Lehman.
LEAP cut to Mkt Perform at Wachovia.
OVTI raised to Overweight at JPMorgan.
PCLN raised to Positive at Susquehanna.
PCS cut to Mkt Perform at Wachovia.
PSPT raised to Outperform at Piper Jaffray.
RDN cut to Hold at Citigroup.
TRLG raised to Outperform at FBR.
WMG raised to Buy at Citigroup.

Jon C. Ogg
August 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: August 8, 2007 – 6:34 am in Analyst Calls, , , , , , , ,

Heelys…The Wheels Are Falling Off (HLYS)

After Heelys, Inc. (NASDAQ:HLYS) had already been cut almost in half, the roller shoe maker is feeling even more pain.  The company posted $0.45 EPS on revenues of $74.3 million.  This was more than a 100% EPS gain and over 130% in revenue gains year over year, and estimates from First Call were $0.42 EPS & $73.3 million in revenues.  But then came the guidance….

Heelys now only sees $0.28 to $0.30 EPS on revenues of $55 to $58 million.  First Call estimates are $0.38 and $68+ million.  It also expects an implied $207 to $216 million in revenues, but analysts are looking for more than $272 million in revenues.  That isn’t just a miss, that is a total wiff. 

It sounds sort of like all Heelys has to look forward to tomorrow at this point is all of that 4+ million shares in the short interest that hadn’t covered their positions that might want to declare victory.  It’s being hit hard enough you’d think they hired Barry Bonds as the role model.  Shares had traded up almost 10% a day after hitting new lows, but shares are reeling in after-hours trading with shares down 30% to new post-IPO lows down under $16.00.

Jon C. Ogg
August 7, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: August 7, 2007 – 5:48 pm in Apparel, Earnings, Earnings Warning, ,

Earnings Preview: Heelys (HLYS)

Heelys, Inc. (NASDAQ:HLYS) has been a like a ride at an amusement park since coming public.  The stock is actually close to its post-IPO lows now.  But all of a sudden shares are up about 5% hours before earnings.  Today is the earnings date and First Call is looking for $0.42 EPS on revenues of $73.3 million.  Be advised that there is still a very thin coverage universe in this stock and the company only has two earnings reports under its belt since coming public.

If it offers guidance, estimates for Q3 are $0.38 EPS & $68.4 million in revenues, and fiscal 2007 estimates are $1.60 EPS & $272.8 million in revenues.  So, assuming the company can hit this target for the year, it currently trades at just over 13-times 2007 earnings estimates.  The reason for the low forward P/E ratio is likely due to it mainly having a one product company, even if it does have apparel now and more accessories on the way.  The reports of wheeled-shoe injuries have been a likely hamper as well.

Its chart is ugly from falling off a cliff since early May and not really participating in the summer rally before the last drop.  The company also had to withdraw a share offering in June.  Most analysts are actually positive on the stock and average price targets still appear to be north of $30.00.  Options traders must be expecting a big jump or a big drop, because on a static basis it appears that options traders as of right now are braced for a move of about 10% in either direction.

We’ll see how the company does.  Post-IPO lows were just put in yesterday.  Its July short interest was up over 10% to more than 4.8 million shares.  Any good news out of the company could cause a pretty large short squeeze, although some of today’s move could probably be attributed to shorts getting out of the way and declaring victory. 

Jon C. Ogg
August 7, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: August 7, 2007 – 10:53 am in Apparel, Earnings, ,

Starbucks (SBUX) Leads The 52-Week Low Club

Starbucks (SBUX) Management says reaching higher expectations for quarter looks bad. Drops to $26.10 from $40.01. Would you like a latte with your stock certificate?

Esco Technologies (ESE) Big client Pacific Gas & Electric is looking at other metering technology. Drops to $35 from $58.42.

Hovnanian Enterprises (HOV) Another casualty of home sales fall-off. Drops to $18.51 from $38.66.

HRPT Properties Trust (HRP) sells $250 million in senior notes. Investors revolt. Down to $10.38 from 52-week high of $13.67.

Pulte Homes (PHM) Another home builder. Trades at $23.92 down from 52-week high of $35.56.

Zila  (ZILA) Cancer screening company has rough quarter. Falls to $1.07 from 52-week high of $3.38.

Heelys (HLYS) Shoes with rollers in them. Safety concerns. Nuf said. Down to $26.70 from 52-week high of $40.09.

Melco Pbl (MPEL) Casino company shares weak on concerns about restricted traffic to it Macau property. Raises $2.75 billion. Watch out for the communists. Down to $11.40 from 52-week high of $23.55.

Posted on: June 21, 2007 – 3:10 pm in Uncategorized, , , , , , , ,