By Ben Fox Rubin
As next week offers a light earnings calendar, investors likely
will focus their attention on the U.S. Federal Reserve's meeting,
housing data reports and Hostess Brands Inc.'s bankruptcy
proceedings.
Retailer Quarterly Results on Tap
Retailers will continue to dominate the earnings cycle next
week, with about a dozen major retail companies slated to
report.
Wet Seal Inc. (WTSL), which reports Thursday, had forecast its
fiscal fourth-quarter loss would be at or near the low end of its
guidance, as the struggling women's apparel retailer posted another
substantial drop in same-store sales. The company, which operates
its namesake and Arden B stores, has undergone a substantial
leadership transition after hedge-fund manager Clinton Group Inc.,
a major shareholder, agreed to drop its proxy fight with the
company in exchange for naming four board seats.
Since then, Wet Seal has named a new chief executive, lost its
chief operating officer to resignation and unveiled a series of
cost-cutting efforts as it works to improve its finances. The
company is expected to return to profitability in the new fiscal
year.
Additional retailers set to report are DSW Inc. (DSW), Tiffany
& Co. (TIF), Francesca's Holdings Corp. (FRAN), New York &
Co. Inc. (NWY), Guess Inc. (GES), Pacific Sunwear of California
Inc. (PSUN) and Perry Ellis International Inc. (PERY).
Williams-Sonoma Inc. (WSM), parent company of Pottery Barn and
West Elm, is expected to report stronger earnings Tuesday. The
home-goods retailer has posted steady revenue growth, but has
struggled with an underperforming namesake brand and margin
pressure from an intensely competitive environment. Williams-Sonoma
recently launched a plan to develop its online and international
sales, upgrade its supply chain and expand its West Elm business.
Despite the heavy spending, the company's profit margins have shown
improvement.
Oracle, Adobe Reporting
Oracle Corp. (ORCL) is set to report its fiscal third-quarter
results Wednesday, with analysts polled by Thomson Reuters
expecting a rise in profits. Strength in the tech company's
traditional software business has led to sustained improvements in
earnings, offsetting continuing revenue declines in its hardware
segment. The company also has inked a few major acquisitions
lately, agreeing to buy telecommunications-equipment maker Acme
Packet Inc. (APKT) in a deal valued around $1.7 billion and
software firm Eloqua Inc. for roughly $810 million.
Additional tech names slated to report next week are Adobe
Systems Inc. (ADBE) and Jabil Circuit Inc. (JBL).
Equities Grab-Bag
Other major and notable names set to report next week include
FedEx Corp. (FDX), Nike Inc. (NKE), General Mills Inc. (GIS) and
restaurant company Darden Restaurants Inc. (DRI). Market research
firms IHS Inc. (IHS) and FactSet Research Systems Inc. (FDS) also
are set to report.
Hostess Nears Bankruptcy Sales
The fate of Twinkies, Wonder Bread and other beloved Hostess
brands will be in a bankruptcy judge's hands Tuesday.
Apollo Global Management LLC (APO) and Metropoulos & Co.
have offered $410 million for such snack cake brands as Twinkies,
Ho Hos and Ding Dongs, as well as five bakeries and equipment.
Metropoulos & Co.'s Evan Metropoulos, whose family owns
Pabst Brewing Co., said he hopes to quickly return Twinkies and
Hostess's other snacks to store shelves, where they have been
missing since their maker launched its liquidation last
November.
Also next week, Patriot Coal Corp. (PCXCQ) will ask the St.
Louis bankruptcy court for permission to pay nearly $7 million in
bonuses to the employees it is counting on to shepherd it through
an "increasingly difficult" time.
Housing Data Coming
Next week's data calendar is dominated by housing reports.
Investors and economy-watchers also will carve out time to follow
the Federal Reserve's two-day policy meeting. The statement and
press conference are scheduled for Wednesday.
The housing market index, scheduled for Monday, will gauge
builders' confidence for March. Economists surveyed by Dow Jones
Newswires expect this month's index to edge up to 48 from 46 in
February.
The Commerce Department's report on home construction is on tap
Tuesday. The median forecast expects housing starts increased 1.6%
in February, to an annual rate of 904,000. Building permits are
forecast to rise to a pace of 920,000.
Treasury Secretary Heading to China
Newly installed Treasury Secretary Jacob Lew will make his first
international trip as secretary next week with a two-day visit to
China. Mr. Lew will visit Beijing March 19 and 20 for meetings with
China's new leadership and senior economic officials, the Treasury
Department said this week. In those meetings, the secretary plans
to talk about the relationship between the two massive trading
partners and opportunities for "cooperation and growth."
--Jacqueline Palank, Kathleen Madigan and Eric Morath
contributed to this article.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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