By Nathalie Tadena
In a relatively light week ahead for corporate earnings, several
retailers and food companies are among those due to report their
latest quarterly results.
Monday marks the biggest online shopping day of the year in the
U.S. as several e-commerce outlets look to lure holiday shoppers
with "Cyber Monday" deals.
Among the spate of economic reports to be released next week are
durable- goods orders data and a consumer confidence reading, as
well as a second look at the third-quarter economy.
Several Retailers to Report Results
A handful of retailers, including several teen-focused apparel
companies, will release their latest quarterly results.
Analysts polled by Thomson Reuters project Aeropostale Inc.
(ARO), a bargain player among teen retailers, to record slightly
weaker third-quarter profits. Meanwhile, rival American Eagle
Outfitters Inc. (AEO)-- which has been a standout in the teen
sector lately -- is expected to post a double-digit earnings gain.
High-end peer Abercrombie & Fitch Co. (ANF), with its inventory
issues largely under control and fresh product in stores, recently
reported unexpectedly robust fiscal third-quarter results.
Other notable names in the retail space reporting results next
week include women's apparel company Ann Inc. (ANN), bookseller
Barnes & Noble (BKS), privately held apparel company J. Crew
Group Inc., luxury watchmaker Movado Group Inc. (MOV) and high-end
jewelry company Tiffany & Co. (TIF).
Kroger Expected to Report Stronger Profits, Sales
Supermarket giant Kroger Co. (KR) is among several grocery
operators and food companies releasing results next week.
Kroger, the nation's largest traditional grocery retailer, has
been managing a tough competitive environment by cutting business
costs and reinvesting the savings into lowering prices on some
items, offering tailored coupons and discounts to consumers and
broadly trying to improve the shopping experience to build customer
loyalty. Analysts expect the company to report top- and bottom-line
growth for the third quarter.
Green Mountain Coffee Roasters Inc. (GMCR), Ralcorp Holdings
Inc. (RAH), Post Holdings Inc. (POST), Cracker Barrel Old Country
Store Inc. (CBRL) and WhiteWave Foods Co. (WWAV) are also due to
release quarterly results.
Online Retail Aim to Lure Customers with 'Cyber Monday' Deals
With the key holiday shopping season under way, several
e-commerce outlets are looking to lure holiday shoppers by offering
"Cyber Monday" online deals. Though consumer confidence has
improved, shoppers still remain cautious amid a sluggish
economy.
Online revenue for the retail sector could climb 18% to $2
billion on Cyber Monday, according to recent data from Adobe
Systems Inc. (ADBE). Online shopping has been making up a greater
portion of holiday spending in recent years, helped by web-enabled
devices. Adobe's Digital Index 2012 Online Shopping Forecast also
predicts strong purchasing activity from mobile devices, with
mobile representing 21% of total online sales this holiday, more
than double that of last year.
Durable Goods, Consumer Confidence Data Among Economic Reports Next Week
Economic reports next week will include: durable goods orders
and consumer confidence on Tuesday, a second look at the
third-quarter economy on Thursday, and October personal income and
spending on Friday. Also the Federal Reserve will release its Beige
Book Wednesday in advance of its Dec. 11-12 policy meeting.
Forecasters surveyed by Dow Jones Newswires expect a 1.3% drop
in durable goods orders for October after an airplane-fueled 9.8%
jump in September. Meanwhile, consumer confidence, as gauged by the
Conference Board, is expected to increase slightly this month.
The Commerce Department will report its second reading of
third-quarter gross domestic product on Thursday. Economists think
real GDP growth picked up to an annual rate of 2.8%, better than
the 2.0% pace first reported. Foreign trade and inventories are
expected to drive the upward revision.
Conferences
Among the significant conferences next week are the BB&T
Capital Markets Consumer, Food & Retail Conference on Monday in
New York, the Credit Suisse Technology Conference Tuesday through
Thursday in Scottsdale, Ariz.; the FBR Fall Investor Conference on
Tuesday in New York; the Goldman Sachs Global Metals &
Mining/Steel Conference Tuesday and Wednesday in New York; the
Piper Jaffray Healthcare Conference Tuesday and Wednesday in New
York; and the Jefferies Global Energy Conference Wednesday and
Thursday in Houston.
--Kathleen Madigan and Dow Jones Newswires staff contributed to
this report article
Write to Nathalie Tadena at nathalie.tadena@dowjones.com
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