Polypore International Updating Forecast After Announcement of New Credit Agreement
Ritchie Bros. Auctioneers Inc. March Auction Results Decline Due to Auction Timing
Ritchie Bros. reported March gross auction proceeds (GAP) of $524 million, which was a decrease of 8% from $569 million a year ago. While the magnitude of the decrease was likely a little bigger than consensus forecasts, it was mostly expected given the company’s commentary at its analyst day that February results were inflated because…
Zumiez Modestly Raising Estimates on Better-Than-Expected March Sales
Zumiez’s March sales were better than Street projections, with comps down 2.9% against a 2.1% year-ago comparison, better than our and consensus projection for a midsingle-digit decline. As a result, Zumiez’s quarter-to-date comp decline of 0.8% is at the better end of management’s guidance for a full-quarter comp decrease in the low-single-digit range. Category trends…
Urban Outfitters Quarter-to-Date Comps on Track Versus Expectations
In its 10-K filed after the markets closed on Tuesday, Urban Outfitters indicated quarter-to-date comp trends are in the negative low-single-digit range, likely putting the company on track to meet full-quarter consensus expectations for an approximate 1% comp increase and our estimate of relatively flat given the shift in Easter to late April. Urban’s 10-K…
MSC Industrial Accelerating Sales Growth and Positive Tone Bode Well for Shares
Accelerating sales growth, an EPS beat, and positive management tone drove MSC Industrial shares up nearly 5%. EPS were $0.02 ahead of the Street, although the bar was low due to weather fears. The headline was accelerating organic sales growth in March to 10% and guidance for 7%-9% growth in the fiscal third quarter. Management said…
Potbelly Corporation More Palatable Valuation
Potbelly’s stock has declined nearly 30% so far this year and is down more than 40% since late October. While estimates have retracted about 10% on weather-related softness in the first quarter and the company’s decision to enter a new hub market in 2014, the bulk of the stock decline is the result of multiple…
Luxottica Signs New License Agreement With Michael Kors
Luxottica and Michael Kors announced a new exclusive 10-year license agreement under which Luxottica will design, manufacture, and distribute prescription frames and sunglasses for Michael Kors beginning spring 2015. Michael Kors had previously worked with smaller eyewear manufacturer Marchon since 2004. The agreement is positive for both Luxottica and Michael Kors. With regard to Luxottica,…
Apollo Education Group Positive Investor Day, but Recovery Remains Difficult to Quantify
Apollo Education Group’s first investor day since 2006 helped shed light on a business in transition and the deep and qualified leadership team behind the transition, but lacked incremental quantitative support for the next leg up in the company’s recovery. Management still believes the core domestic degree business can return to modest growth through a…
Regulatory Update; Terrorism Bill Moves in Much More Favorable Direction
The Financial Markets Committee within the Duma approved a toned-down draft of amendments to Russian Federation Law No. 161-FZ. Of course, this does not remove geopolitical risk, which is quite difficult to call. Obviously, escalation of the Ukraine crisis would be troublesome for Qiwi shares and a de-escalation would be very good news for the…
Amazon.com Improving Third-Party Sales Trend in March
Tuesday morning ChannelAdvisor, which tracks monthly same-store sales growth for third-party sellers on the Amazon and eBay marketplaces, announced sales trends for the month of March. According to ChannelAdvisor, growth of Amazon’s third-party sales accelerated to 26.2% in March from 23.0% in February, and 14% in January (see exhibit 1). On a two-year stacked basis,…