By Ben Fox Rubin
Earnings results from big and notable companies will be sparse
next week, so--just like this week--the primary fare will be a
handful of retailers. On the data side, some consumer data are
expected, as well as an update on first-quarter gross domestic
product.
Markets are closed Monday for Memorial Day.
Costco Among Retail Group Reporting
Amid a quiet and shortened trading week, Costco Wholesale Corp.
(COST) will be the biggest name on the earnings calendar. It
reports Thursday.
Costco's sales have mostly topped Wall Street's expectations in
recent quarters, thanks in part to a shaky economy encouraging
shoppers to make bulk purchases at its warehouse clubs. Costco also
sells its gasoline for less than area pumps, which has contributed
to higher traffic at its stores. But like many other retailers,
Costco has faced rising costs for merchandise. Analysts polled by
Thomson Reuters expect per-share earnings to rise 17% and revenue
to grow 8%.
The company will be joined by a handful of other retailers,
including Tiffany & Co. (TIF), shoe companies DSW Inc. (DSW)
and Brown Shoe Co. (BWS), and women's apparel retailers Wet Seal
Inc. (WTSL) and Chico's FAS Inc. (CHS). Luxury watchmaker Movado
Group Inc. (MOV) will also be reporting.
Splunk, Joy Global, Lions Gate
The lighter week will include a smattering of companies from
other sectors, including data-analysis firm Splunk Inc. (SPLK),
mining-equipment maker Joy Global Inc. (JOY), doughnut chain Krispy
Kreme Doughnuts Inc. (KKD) and movie studio Lions Gate
Entertainment Corp. (LGF).
Lions Gate has been edging its way into the ranks of Hollywood's
more powerful studios with the box-office success of "The Hunger
Games" and its acquisition last year of independent studio Summit
Entertainment LLC, which gave it control of the "Twilight" series.
For its previous quarter, the company saw revenue more than double
thanks in part to the domestic theatrical box-office performance of
"The Twilight Saga: Breaking Dawn--Part 2." Analysts expect the
company to swing to a per-share profit in the latest quarter, after
it was bogged down a year earlier by Summit acquisition costs, and
revenue should grow 13%.
First-Quarter GDP Update
On Thursday, the Commerce Department is scheduled to report its
second look at first-quarter gross domestic product. Economists say
the additional data now available will cause real GDP growth to be
revised to an annual rate of 2.4%, little changed from 2.5%
reported a month ago.
On Friday, data on consumer income and spending for April will
be reported. Economists think the household sector started the
second quarter on wobbly legs. Personal income is forecast to be up
just 0.1% last month, while spending was flat.
--Kathleen Madigan contributed to this article.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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