DOW JONES NEWSWIRES
Lazard Capital Markets boosted expectations for several apparel
retailers, projecting better same-store sales for many of them,
following what it called a strong holiday season.
Many analysts and investors have been both hopeful and
apprehensive about how retailers did this holiday season after the
prior year's moribund results. A clearer sign will come Thursday
when many in the industry will release December sales figures.
Lazard raised its fiscal fourth-quarter earnings estimates on
Talbot's Inc. (TLB), American Eagle Outfitters Inc. (AEO) and
Limited Brands Inc. (LTD), saying it expects the companies to post
better-than-expected December sales. Lazard has a buy investment
rating on all three companies' stocks.
The investment bank also increased its fourth-quarter profit
forecast for Target Corp. (TGT), saying the retailer saw "traffic
acceleration over the past four weeks" even though Lazard said it
didn't see as many shelves "picked clean" as it did last year.
Lazard also raised its earnings view on TJX Cos. (TJX), which
operates T.J. Maxx stores, calling it "a clear winner both in terms
of sales and margin."
Meanwhile, Lazard said a storm throughout New England the
weekend before Christmas could hurt BJ's Wholesale Club Inc.'s (BJ)
fourth-quarter bottom line. It also lowered its estimates on Gap
Inc. (GPS), saying increased advertising likely didn't generate the
expected amount of business.
None of the seven retailers' shares changed notably in premarket
trading.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com