Earnings Review: FRAN, LULU, SJM, MW

Published on Saturday, 09 June 2012 13:09 Written by Todd Shriber

Another week at the office for U.S. equities has come to a close and it was another week in which traders and investors were held hostage by global macroeconomic news, particularly of the European news. Of course Federal Reserve Chairman Ben Bernanke’s congressional testimony cannot be left out of the conversation.

Bernanke stopped short of saying more quantitative easing is on the way, but he did say the central bank stands ready to act if the economy falters. China threw in a surprise interest rate cut on Thursday and with Europe being less bad than it has been, U.S. stocks notched their best weekly performances since December 2011.

The themes lifting U.S. stocks this week were broad in nature, but there were still noteworthy earnings reports to look back on.

Francesca’s Holdings (NASDAQ: FRAN):

The newly public apparel retailer surged almost 24% on Friday after the company said its first-quarter profit rose to $8.7 million, or 20 cents per share, from $3.9 million, or 10 cents per share, a year earlier. Revenue jumped 49% to $61.3 million. Analysts expected a profit of 17 cents per share on revenue of $60.3 million.

For the second quarter, Francesca’s expects to earn 22-23 cents a share on sales of $69-$71 million. Analysts are expecting a profit of 22 cents per share on sales of $68.6 million.

Lululemon Athletica (NASDAQ: LULU):

The purveyor of pricy athletic apparel lost more than 7% this week after the company said it expects second-quarter EPS of 28-30 cents on sales of $273-$278 million. Analysts are expecting a profit of 33 cents per share on revenue of $289.2 million. Lululemon expects a full-year profit of $1.55-$1.60 a share on revenue of $1.32-$1.34 billion. Analysts are expecting a profit of $1.63 per share on revenue of $1.35 billion.

In its fiscal first quarter, Lululemon earned $46.6 million, or 32 cents per share, up from $33.4 million, or 23 cents per share, a year earlier. Sales soared to $285.7 million from $186.8 million. Same-store sales rose 25%. Analysts expected a profit of 30 cents on sales of $274 million.

J.M. Smucker (NYSE: SJM):

The jam and jelly maker said its fiscal fourth-quarter profit rose to $104.1 million, or 93 cents per share, from $94.9 million, or 82 cents per share, a year earlier. On an adjusted basis, the company earned $1.10 a share. Revenue increased 14% to $1.36 billion. Analysts expected a profit of $1 a share on revenue of $1.19 billion. The company issued full-year guidance of $5-$5.10 a share on revenue of $5.91 billion. Analysts are expecting a profit of $5.24 per share and revenue of $5.85 billion.

Men’s Warehouse (NYSE: MW):

The apparel retailer saw its shares plunge after the firm said its fiscal first-quarter profit fell to $26.9 million, or 52 cents a share, from $27.4 million, or 52 cents a share, a year earlier. Revenue rose to $586.6 million from $580.4 million. Analysts expected a profit of 55 cents per share and $593.7 million in revenue.

The company forecast a fiscal second-quarter profit of $1.12-$1.13 a share on sales of $660.4-$673.7 million. Analysts are expecting a profit of $1.22 per share and $677.9 million in revenue. The company reiterated full-year guidance of $2.70-$2.80 a share on revenue of $2.48-$2.5 billion. Analysts are expecting $2.80 per share on revenue of $2.49 billion.