More Weak Earnings Reports And Forecasts; Starbucks US Customer Transactions Decline

November 16, 2007 at 8:51 am  ·  Category: Market Commentary, Stocks

Starbucks (SBUX) US same store customer transactions decreased by 1% in the just completed quarter, the first time that measure has been negative since Starbucks started reporting it three years ago. 

Their 4% same store sales increase in the US was driven entirely by price increases.  What this amounts to is that Starbucks is not adding net new customers in the US.

They also provided a weak forecast of EPS of 28 cents per share for their current quarter, below analysts estimates of 31 cents (SBUX FY 4Q Earnings Release).

Starbucks shares are off almost 7%.

Cisco (CSCO) provided an early boost for the tech sector by announcing a $10 billion increase to its share buyback program (Press Release).

Shares are up about 1%.

Federal Express (FDX) lowered its earnings outlook for the current quarter from $1.60-$1.75 to $1.45-$1.55 due to rising fuel costs and some weak shipping trends (Press Release).

Fed Ex shares were off about 4%.

There were also a couple more weak reports from retailers.

Ann Taylor (ANN) reported a decent quarter with revenues up 6% on a .4% decrease in same store sales.  Net Income was up 4%.

But the company reduced its forecast for the fiscal year ending at the end of January (ANN FY 3Q Earnings Release).

Shares were up about 1%.

Kohl’s (KSS) reported a tepid quarter with a 5% increase in sales on a 2.6% decrease in same store sales.  Net Income was down 13%.  They lowered their forecast for the fiscal year ending at the end of January (KSS FY 3Q Earnings Release).

Shares were flat.

Posted by Greg Feirman  ·  Trackback URL  ·  Link
 

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