BloggingStocks

Market highlights for next week: Alcoa to report earnings

Eric Buscemi — 2008-07-03T17:07:00+00:00

Filed under: Earnings reports, Forecasts, Conventions and conferences, Annual meetings, General Electric (GE), Wal-Mart (WMT), Hansen Natural (HANS), Alcoa Inc (AA), Gap Inc (GPS), Marriott Intl'A' (MAR), Federal Reserve

Monday, July 7

San Francisco Fed Reserve Bank President Yellen to speak about the U.S. economic outlook at the University of California/San Diego with a Q&A session.
Aracruz Cellulose (NYSE: ARA) to report Q2 earnings; conference call at 11:00am.

Tuesday, July 8

Richmond Fed Reserve Bank President Lacker to speak about U.S. economic outlook to the National Economists Club in Washington with a Q&A session expected.
Gulfmark Offshore, Inc. (NYSE: GLF) to discuss the acquisition of Ridgon Marine at 9:00am.
Alcoa Inc. (NYSE: AA) to report Q2 earnings; conference call at 5:00pm.
Hansen Natural Corporation (NASDAQ: HANS) to give Business News update at 5:00pm.

Wednesday, July 9

Wolverine World Wide, Inc. (NYSE: WWW) to report Q2 earnings; conference call at 8:30am.
Hot Topic, Inc. (NASDAQ: HOTT) and Zumiez Inc. (NASDAQ: ZUMZ) to hold June sales conference calls at 4:00pm.
Ruby Tuesday, Inc. (NYSE: RT) to report Q4 earnings; conference call at 5:00pm.

Thursday, July 10

Wal-Mart Stores, Inc. (NYSE: WMT) and The Gap, Inc. (NYSE: GPS) to hold June sales conference calls at 8:00am.
Marriott International, Inc. (NYSE: MAR) to report Q2 earnings; conference call at 10:00am.
San Francisco Fed Reserve Bank President Yellen to speak in Portland with a Q&A session at 3:30pm.

Friday, July 11

General Electric Company (NYSE: GE) to report Q2 earnings; conference call at 8:30am.
Infosys Technologies Limited (NASDAQ: INFY) to report Q1 earnings; conference call at 8:30am.

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The next Gap Stores is Zara

Georges Yared — 2008-06-29T09:00:00+00:00

Filed under: Forecasts, Consumer experience, Competitive strategy, Gap Inc (GPS)

This post is part of my series featuring established companies and the smaller, more aggressive or innovative rivals that may eventually succeed them.

San Francisco-based Gap Inc. (NYSE: GPS) has seen its fair share of hits or misses. The original Gap Stores was an overwhelming success in the 1980s and 1990s, but ran into the proverbial wall as the century was ending. The Gap missed the fashion changes and has re-tooled and re-engineered itself more than Joan Rivers! The concept has never been quite the same or attained its cache in the minds of discerning consumers. Other concepts within the Gap system have fared better, such as the Banana Republic, and Old Navy still remains popular in the deep discount segment.

Zara offers a fresh approach to fashion with a range of price points appealing to all levels of consumers. Zara is based in Spain and is part of the huge distribution company Inditex, which trades on the Spanish exchange. Zara is just beginning to make some serious inroads into the United States. With only 154 stores in the U.S., Zara has the room to five-fold its base within the next decade. The Zara concept has over 1,400 stores spread out over 50 countries, with plans to double that base. The U.S. is fertile ground for Zara as the international cache appeals to American consumers.

Zara is a vertically integrated concept. From designing men's, women's and children's fashions to manufacturing to distribution, Zara controls the entire process. The stores are all company-owned, to complete the vertical integration. Zara has captured the cache that the Gap Stores once had. Zara's appeal ranges from casual wear to business attire, while maintaining reasonable price points.

The individual stores are very well designed with "tight lighting" (as one customer aptly described it!) and soft wooden features. The company is committed to locate all U.S. stores in only upscale malls. I don't think we are going to see a Zara outlet store for quite a while!

Georges Yared is the editor of GameOnInvesting, a free service devoted to helping investors spot game changing stocks before they breakout.

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Williams-Sonoma follows the niche retailer's recipe for reduced profits

Bruce Watson — 2008-06-17T12:25:00+00:00

Filed under: Earnings reports, Gap Inc (GPS), Recession

During summers and winters in the early 1990s, I used to work for Williams-Sonoma (NYSE: WSM). In many ways, it was a dream job. I was paid to talk about cooking, learn about cooking and demonstrate cooking tools. One day, however, it occurred to me that, as much as I loved adopting a slightly condescending air when selling high-priced kitchen items, there really was a problem with the products that I was hawking. That afternoon, I talked an older woman into buying a "Tuscan grape drainer" as a gift for her niece's wedding. As the woman left the store, I realized that I had just convinced her to shell out $49.95 for what was, essentially, an earthenware bowl with holes in it and a couple of grape decals stuck on top.

As much as I like cooking, I have to acknowledge that nobody really needs a berry spoon, an asparagus peeler, a corn shucker, or most of the numerous other items that Williams-Sonoma hawks to its customers. The store is, in its own way, comparable to Sharper Image, Wilson's, or any number of the other specialty niche retailers that are finding it so difficult to weather the recession. Recently, in an attempt to lure shoppers into its premium stores, the retailer reduced prices massively, cutting into its profit margin and producing a 42% drop in fiscal first quarter profits.

As some analysts have noted, part of William-Sonoma's problem is that it is supporting an expensive catalog division that isn't really pulling its own weight. Moreover, as shipping prices continue to increase, it is likely that the company will see its catalog sales continue to decline. However, this is only half the issue: while most stores are feeling the recession pinch, it is hitting specialty retailers particularly hard. As Linens N' Things, Sharper Image, Wilson's Leather, and other companies could certainly attest, it's not a good time to specialize. Or, to put it another way, in this economic climate, people are using colanders to drain their grapes.

And who's next on the block? Well, have you taken a peek at the Gap (NYSE: GPS) recently?

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Can Gap Stores cost cut its way to success?

Zac Bissonnette — 2008-06-11T11:48:00+00:00

Filed under: Gap Inc (GPS)

When Gap Stores (NYSE: GPS) installed Glenn Murphy as its chairman and CEO, he was hailed as a savvy retailer whose marketing know-how would compensate for his lack of fashion industry experience. In its press release announcing the hiring, Gap declared that:

During his more than 20 years of experience in retail, Mr. Murphy successfully reinvigorated retail brands in the areas of food, health and beauty, and books. Most recently, at Shoppers Drug Mart, he differentiated the brand with new products and better service, and grew the company's market capitalization from about CAD $3 billion to over CAD $10 billion following its public offering . . .

Nearly 11 months into his tenure, the reinvigoration hasn't exactly happened: June comparable store sales fell 14% which, even allowing for the tough retail environment, isn't too impressive. But Murphy has made progress on other fronts and, so far, his main accomplishment has been cost-cutting.

Reuters reports that Gap is now looking to fold some of its Baby Gap and Gap Kids stores into its flagships to save on rent costs. Is Murphy giving up on more ambitious plans to breathe new life into Gap and Banana Republic? I doubt it but, in the meantime, the cost cuts are adding shareholder value, even if that hasn't been reflected in the stock price. In a different market environment, this leaner Gap trading at a low price/earnings ratio might be a buyout candidate. It could yet become one.

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Second stimulus check?, 25 million Americans underinsured & world's best places to live - Today in Money 6/11

Allan Halprin — 2008-06-11T08:16:00+00:00

Filed under: Google (GOOG), Money and Finance Today, Gap Inc (GPS), Staples Inc (SPLS)

In the News:

· Staples Wins Fight to Buy Corporate Express for $2.6 Billion

· Free Gas Offered to Fuel Sales at a Variety of Places

· Lists of Restaurants, Supermarkets Pulling Tomatoes Grows

· The Gap Looking to Shrink Stores to Save Money

· Carmakers Can't Keep Up With Demand for Hybrids

· Beloved Fictional Characters Get 21st Century Facelift

· Torrential Rains in Midwest Hurt U.S. Corn Crop

· Google Co-Founder Books a Flight in Space

· Abu Dhabi to Buy NY's Chrysler Building

· U.S. News to Expand Consumer Focus; Publish Bi-Weekly

· Trump Battles Environmentalists; Defends Plans for $2 Billion Golf Course

· Prince Charles Pays Off Royal Debt... 350 Years Late

25 Million Americans Are 'Underinsured'
Middle- and upper-income families find it harder to get needed medical care a new report says.
25 Million Americans Are 'Underinsured'

A Second Tax Stimulus Check?
As millions of taxpayers await rebate checks, others find themselves with two.
A second stimulus check? Don't cash it unless you're entitled - MarketWatch

The World's Best Places to Live
Forget about the U.S. where the top city ranked only No. 28 (Honolulu). Mercer Consulting's annual roundup of the global cities with the best quality of life is here, and Zurich once again comes out on top. Vienna, Geneva, Vancouver and Auckland round out the top 5.
World's Best Places - BusinessWeek

Do You Know What's in Your Spouse's Wallet?
You need to know everything about your partner's finances to make smart decisions together. But most couples know next to nothing.
Your family's money: What's in your spouse's wallet? - CNNmoney

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Closing Bell: Forget the tape, biotechs and others move big

Jon Ogg — 2008-06-10T16:28:00+00:00

Filed under: Gap Inc (GPS), Teva Pharm Indus ADR (TEVA), CMGI Inc (CMGI)

Today was indicative of another mixed day for equities, and other markets were mixed as well. We saw a sharp rise in bond yields due to a more hawkish fear from Wall Street about the FOMC rather than the wider than expected trade deficit reported this month. Oils closed down again on increased production today, although we still sit north of $130/barrel. Here are the unofficial closes of major US index levels:

DJIA 12286.18 (+5.86)
S&P500 1358.10 (-3.66)
NASDAQ 2448.94 (-10.52)
10YR T-NOTE 4.099% (+0.107%)
Top 10 Analyst Calls

There were also many biotech stocks today (ACHN, CRXL, MNKD, SQNM, CYTR, CYTX, INGN, ATHX, MITI, GTOP) which saw mystery moves to the downside on either not big news or as a follow-on trading move after news from the last few days.

American Superconductor Corp. (NASDAQ: AMSC) saw a sharp rise and shares were up almost 20% to $43.25 in the final minutes of trading today. The company secured a follow-on order today from China worth more than two-year's worth of revenues for the company.

Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) regained at least some losses today. The diabetes biotech player saw shares up 3% at $27.64 late in the day after the company presented positive data at a diabetes and obesity conference two days after great news from a competitor sent its shares tumbling.

CMGI inc. (NASDAQ: CMGI) saw shares go tumbling today after the owner of ModusLink and the Internet and alternative energy incubator lowered guidance ahead after its earnings last night. Shares were down 25% at $11.25 in the final minutes of the day.

Gap Inc. (NYSE: GPS) shares were up 4.4% at $17.74 in the final minutes of the day after new CEO Glenn Murphy outlined plans to shrink their store numbers and store size to save on expenses as part of its restructuring plan.

Teva Pharmaceutical Industries Ltd. (NASDAQ: TEVA) was down 2.4%at $43.66 in the final minutes today after a competitor signed to distribute a generic form of its Copaxone for MS.

VIVUS Inc. (NASDAQ: VVUS) saw shares up over 4.5% at $7.31 in the final minutes today after the company also showed some very positive data on its diabetes and obesity mid-stage trials.

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Guess? (GES): Shares cycle in bullish 'flag'

Larry Schutts — 2008-06-09T15:58:00+00:00

Filed under: Earnings reports, Analyst upgrades and downgrades, Gap Inc (GPS), Abercrombie and Fitch (ANF), Technical Analysis, Stocks to Buy

Guess? Inc. (NYSE: GES) designs, markets, distributes and licenses a trendy, upscale collection of contemporary apparel, accessories and related consumer products. The company operates 391 retail stores in the United States and Canada and 607 retail stores outside of North America, of which 63 are directly owned. It also distributes products through department and specialty stores around the world. Competitors include Gap Inc. (NYSE GPS) and Abercrombie & Fitch (NYSE: ANF).

Guess? surprised investors last week, when it reported Q1 EPS of 51 cents and revenues of $489.2 million. Analysts had been looking for 46 cents and $451.6 million. The CEO noted that international expansion continued to yield strong results. Management also guided Q2 EPS to 47-49 cents (47 cent consensus), Q2 revenues to $455-$465 million ($456.27M consensus), FY09 EPS to $2.40-$2.48 ($2.44 consensus) and FY09 revenues to $2.03-$2.08 billion ($2.05B consensus). Brean Murray subsequently remarked that the firm's projections remained conservative on a number of levels. Wedbush Morgan reiterated its "buy" recommendation on the shares.

The stock popped on the news and then moved into a bullish "flag" pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Altogether, brokers recommend the issue with five "strong buys" and two "buys". Analysts expect a 23% average annual growth rate, through the next five years. The GES Sales Growth rate (29.44%), EPS Growth rate (34.21%), Operating Margin (17.58%), Return on Assets (18.96%), Return on Investment (27.46%) and Return on Equity (33.17%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 69% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past fifty-two weeks, it has traded between $30.00 and $57.20. A stop-loss of $37.60 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

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Dress up your portfolio with this apparel stock (TRLG)

Timothy Sykes — 2008-05-27T11:11:00+00:00

Filed under: Gap Inc (GPS), Abercrombie and Fitch (ANF), Under Armour'A' (UA), Technical Analysis, Stock screen, Liz Claiborne (LIZ), Stocks to Buy, Recession

I know, I know, with the economy sputtering, why would you ever want to be invested in an apparel company that produces expensive jeans? Let alone have it recommended by a typically short-selling trader like me! But before I tell you the name of this stock that despite the obvious economic problems -- strong oil, weak housing and the dollar, mounting foreclosure, etc -- is sitting right near all-time highs, looking to break out, let's do a quick rundown of its competitors in the apparel retail space.

There's Polo Ralph Lauren Corp (NYSE: RL) and Lululemon Athletica (NASDAQ: LULU), which after substantial runups and crushing drops off their highs, have been trying to find their footing. Then there are steady downtrenders Under Armour Inc (NYSE: UA), American Eagle Outfitters (NYSE: AEO), Pacific Sunwear of California (NASDAQ: PSUN), Liz Claiborne Inc. (NYSE: LIZ) and Bebe Stores (NASDAQ: BEBE). And last but certainly not least, the stock-that's-gone-absolutely-nowhere-for-the-past-six-years-meaning-its-been-useless-for-both-longs-and-shorts The Gap Inc (NYSE: GPS).And the winner for best apparel company that deserves your hard earned cash is True Religion Apparel Inc. (NASDAQ: TRLG), which at $23.75, is only $1 off its all-time highs. Ever since this clothing/jeans maker surged from $1 to $25 in just 18 months back in 2004-2006, its stock has been basing between $15 and $25. All the while short sellers have piled on, shorting over 10 million shares of the company's 17 million float.

With its latest solid earnings report and increased guidance, the stock broke to new highs on strong volume, no doubt worrying more than a few of those shorts. Trading with only a forward P/E of 15, which should drop to 12 or so (once analysts update to include the latest numbers) and booming sales growth in excess of 45%, this could become one mother of a short squeeze play, ideally breaking past $30, or possibly even $40 per share. Even if this breakout is just a fakeout, the downside appears limited around only 30% -- so with an upside potential that's double the downside, this stock is a good buy risk-reward-wise.

And let us not forget, second place in this category goes to Abercrombie & Fitch Co. (NYSE: ANF), which after some impressive gains, has been consolidating rather well, especially given the environment.

Disclosure: Timothy Sykes has no positions in any stock mentioned

Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund.

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Gap consolidates e-commerce sites -- what took so long?

Zac Bissonnette — 2008-05-27T09:39:00+00:00

Filed under: Consumer experience, Marketing and advertising, Gap Inc (GPS)

In a move designed to make it easier and more appealing for consumers to shop at its websites, Gap (NYSE: GPS) is consolidating operations to allow for the purchase of clothing from Gap, Banana Republic, Old Navy and Piperlime using one shopping cart, paying one shipping fee.

The Wall Street Journal reports that "By integrating the sites, the San Francisco-based company hopes to encourage shoppers to purchase products from more than one of its brands. Gap says about a third of its online orders are placed by customers who shopped at more than one of its Web sites in the past year."

Since this seems like an obvious way to spur sales growth, you have to wonder what took so long. One concern may be that keeping the sites separate kept the brands more distinct in the eyes of the consumer. Will having pricey Banana Republic merchandise in the same shopping cart as the more budget-oriented Old Navy detract from the value of that brand? It's possible. It may be why a more successful retailer like Abercrombie & Fitch (NYSE: ANF) has chosen to keep Hollister and its namesake brand entirely separate.

But with recent cost cuts aimed at improving profitability, Gap's recently-anointed CEO Glenn Murphy appears focused on improving performance now rather than building brands. With its shares trading at about half of where they were a decade ago, shareholders are probably ready for that.

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Earnings highlights: Home Depot, Gap, Lenovo, Air France, Activision, Suntech and others

Trey Thoelcke — 2008-05-24T09:40:00+00:00

Filed under: Earnings reports, Home Depot (HD), Gap Inc (GPS), Lowe's Cos (LOW), Activision Inc (ATVI), Intuit Inc (INTU), Suntech Power Hldgs ADS (STP)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Activision Inc. (NASDAQ: ATVI) beat Q4 expectations and raised its fiscal 2009 guidance.
Air France-KLM swung to a loss in the fourth quarter and warned of tough times ahead.
BJ's Wholesale Club (NYSE: BJ) Q1 earnings soared, beating expectations, and it raised its forecast.
Canadian Solar Inc. (NASDAQ: CSIQ) beat Q1 estimates on robust demand and favorable exchange rates.
Foot Locker Inc. (NYSE: FL) Q1 profit declined, hurt by an impairment charge and nearly flat sales.
Gap Inc. (NYSE: GPS) beat Q1 earnings estimates by managing costs and inventory.
Home Depot Inc. (NYSE: HD) Q1 earnings tumbled on a one-time charge and the housing slump.
Intuit Inc. (NASDAQ: INTU) beat Q3 expectations and announced a share buyback program.
Lenovo Group Ltd. (OTC: LNVGY) Q4 earnings more than doubled on strong global distribution.
Lowe's Companies Inc. (NYSE: LOW) reported a so-so first quater in line with Wall Street expectations.
NetEase.com Inc. (NASDAQ: NTES) Q1 earnings declined due to increased tax burden.
Saks Inc. (NYSE: SKS) missed Q1 earnings estimates but beat revenue expectations.
Solarfun Power Holdings Co. (NASDAQ: SOLF) Q1 revenue surged 529% from the previous quarter.
Suntech Power Holdings Co. (NYSE: STP) Q1 revenues soared and earnings more than doubled.

Additional earnings highlights:
Hewlett-Packard, Target, Barnes & Noble, Campbell, Staples and others
Ford, Hormel, Limited Brands, Intuitive Surgical, PetSmart and others

Upcoming results to watch for include Borders (NYSE: BGP), Polo Ralph Lauren (NYSE: RL), TiVo (NASDAQ: TIVO), Big Lots (NYSE: BIG), Costco (NASDAQ: COST), Dell (NASDAQ: DELL), HJ Heinz (NYSE: HNZ), Sears (NASDAQ: SHLD), Lions Gate (NYSE: LGF), and Tiffany (NYSE: TIF).

Visit AOL Money & Finance for more earnings coverage.

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Market close: Good week for a train wreck

Douglas McIntyre — 2008-05-23T17:50:00+00:00

Filed under: After the bell, General Electric (GE), General Motors (GM), Anheuser-Busch Cos (BUD), Gap Inc (GPS)

A bad day closed out a bad week as home sales drove off a cliff and concerns over oil prices pushed most airlines and General Motors Corporation (NYSE: GM) to 52-week lows. Even General Electric Company (NYSE: GE) dropped to a one-year level of its own.

Key analyst calls for the day.

52-Week Lows

DJIA: 12,479.63 -1.16% S&P 500: 1,379.53 -1.32% Nasdaq: 2,444.67 -0.81%

Most stocks moved on bad news and rumor. Anheuser-Busch Companies, Inc. (NYSE: BUD) jumped 7% on news that it might be bought by InBev. Resales of U.S. houses and condos dropped 1% to a seasonally adjusted annualized rate of 4.89 million from 4.94 million in March.

The only company of any size which posted any good news was The Gap, Inc. (NYSE: GPS). The retailer posted net income of $249 compared to $178 last year. Since most of the improvement was from cost cuts, it does not signal any improvement in retail.

Maybe next week will be better. Or not.

Douglas A. McIntyre is an editor at 247wallst.com.

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Military couple are millioniares in making, more trouble ahead for fliers & incredible parking garages - Today in Money 5/23

Allan Halprin — 2008-05-23T08:45:00+00:00

Filed under: Yahoo! (YHOO), Walt Disney (DIS), Money and Finance Today, Gap Inc (GPS), Southwest Airlines (LUV), US Airways Group (LCC), AMR Corp (AMR), Contl Airlines'B' (CAL), UAL Corp (UAUA), JetBlue Airways (JBLU), Delta Air Lines (DAL)

In the News:

· $4 Gas Forecast for Coming Week

· The Gap Weathers Sales Slump as 1Q Profit Surges 40% Thanks to Cost Management

· Airlines Running Short on Options

· Deal Reached in Tainted Pet Food Case

· Mesa Air's Future in Doubt

· Home Prices Post Record Decline

· Yahoo Nominates Existing Board for Re-Election

· High Gas Prices Force Cops to Walk the Beat More

· Disney Recalls Sleeping Bags, Toy Wands

Military Couple are Millionaires in the Making
If you're brave enough and willing, the Army can be a lucrative career. Just ask U.S. Army Captains Matthew and Kristen Shifrin. This military couple's plan is to save one paycheck and live off the other. That has them well on their way to meeting their financial goals.
Millionaires in the Making Millionaires in the Making: The Shifrins «

Safeguard Your Home Before a Storm Strikes
Disaster has stormed through homes from the Gulf of Mexico to the Atlantic Ocean, with 1,005 tornadoes reported so far this year and AccuWeather.com forecasts 12 named hurricanes this year. Take these steps now to protect your house and valuables -- plus, what to do after disaster hits.
Safeguard Your Home Before a Storm Strikes - Kiplinger.com

More Trouble Ahead for Fliers
Other carriers are likely to mirror American's plans to add checked-bag fee and cut seats.
Other Airlines Likely to Follow American's Lead -SmartMoney

Steps to Take to Avoid Having Your Car Stolen
Every 26.4 seconds, another car is stolen in the United States. Don't be part of this statistic. You can avoid starring as a car-heist victim in a real life "Gone in 60 Seconds" scenario by following these steps.
Putting the brakes on auto theft - Bankrate.com

Most Incredible Parking Garages
Parking structures are rarely sexy. But these nine buildings were built to accommodate automobiles in an architecturally sophisticated manner.
http://images.businessweek.com/ss/08/05/0521_beautiful_parking/index_01.htm?technology+slideshows

World's Best Vodka
Some drinkers say vodka has no taste. Discerning martini drinkers disagree. BusinessWeek's in-house bon vivant David Kiley thought it a good time to evaluate some of the top brands on the bar shelf. Ketel One and Ciroc tied for the top.
In Pictures: Best Vodkas World's Best Vodka? It's Anybody's Guess

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Before the bell: As oil resumes rally, stocks set to decline

Melly Alazraki — 2008-05-23T07:41:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), Market matters, Halliburton (HAL), Gap Inc (GPS), Economic data, Oil, Housing

Stock futures were lower Friday morning as one again crude prices resumed their seemingly endless move upward. The market may also be agitated about further data upcoming about the housing market.

On Thursday, U.S. stocks ended higher two days of heavy losses as finally crude-oil futures retreated, giving some relief to the markets. The Dow industrials finished 24 points higher, or 0.19%, the Nasdaq Composite rose 16 points, or 0.67%, and the S&P 500 added 3 points, or 0.26%.

Only one economic report is due out today. April existing-home sales will be released at 10 a.m. EDT, and economists expect it to decline yet again.

Oil prices rose Friday, as supply concerns once again took center stage especially with growing global demand. After tumbling around $4 overnight from a record above $135 a barrel, light, sweet crude for June delivery was up $1.29 to $132.10 a barrel.

With the long weekend just around the corner, trading might be lighter than usual today. U.S. markets will be closed Monday for Memorial Day.

Despite the market softening somewhat lately, deal news have been increasing. Today, we hear that Halliburton (NYSE: HAL) has made a conditional bid of $3.36 billion for Expro International Group PLC (OTC: EXPRF), the British oil services firm. The all-cash proposal is about 6% higher than the previous one.

Meanwhile, Yahoo Inc. (NASDAQ: YHOO) on Thursday postponed its annual meeting from July 3 to late July. No doubt, Yahoo!'s board, afraid of losing control following Carl Icahn's call to replace the board. Yahoo's board may use the time to either negotiate a deal with Microsoft Corp. (NASDAQ: MSFT), a partnership with another company, or prepare its defense. This the second time Yahoo has postponed its annual meeting.

Gap Inc. (NYSE: GPS) reported results after the close Thursday, saying that while revenue dropped 5%, it managed to still boost its first-quarter profit by 40% by managing inventory and cutting costs. Gap said that it earned $249 million, or 34 cents per share on $3.38 billion in revenue. It beat estimates of 30 cents per share but missed the expected $3.42 billion in revenue. GPS shares traded 2.5% higher in after-hours.

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Gap, Aeropostale Q1 profits rise despite weak economy

Trey Thoelcke — 2008-05-22T17:58:00+00:00

Filed under: Earnings reports, Gap Inc (GPS)

Ubiquitous mall retailers Gap Inc. (NYSE: GPS) and Aeropostale Inc. (NYSE: ARO) both reported Thursday that their profits increased in the first quarter despite the weak economy.

San Francisco-based Gap said it boosted its earnings by tightly managing costs and inventory. Profit for the quarter ended May 3 rose 40% to $249 million, or 34 cents per share, from $178 million, or 22 cents per share, in the same period last year. However, revenue fell 5% to $3.38 billion as same-store sales fell 11%.

Analysts polled by Thomson Financial had predicted a profit of 30 cents per share on revenue of $3.42 billion.

The Gap reaffirmed its 2008 guidance of earnings between $1.20 and $1.27 per share, while analysts expect $1.25 per share.

Shares rose 22 cents, or 1.2%, to close at $18.29 Thursday, and climbed an additional 31 cents in after-hours trading.

New York-based Aeropostale's first-quarter profit rose 27% to $17.5 million, or 26 cents per share, from $13.8 million, or 18 cents per share, in the same quarter a year ago. Revenue rose 22% to $336.3 million from $275.8 million. Same-store sales rose 10% in the quarter.

Analysts polled by Thomson Financial had expected a profit of 25 cents per share on revenue of $332.3 million.

Shares fell 3 cents to close at $32.72, and declined another 72 cents, or 2.2%, after hours. Shares have risen 23.5% since the beginning of the year, reaching a 52-week high of $36.02 last week.

Another favorite of malls everywhere, Foot Locker Inc. (NYSE: FL), didn't fare as well. Foot Locker's first-quarter profit fell, hurt by an impairment charge and nearly flat sales. Shares fell 1.5% Thursday, but rebounded after hours.

Visit AOL Money & Finance for more earnings coverage.

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Before the bell: BCE, STP, BKS, GPS, AAPL, CRM, PFE, MRK

Melly Alazraki — 2008-05-22T08:21:00+00:00

Filed under: Before the bell, Earnings reports, Analyst reports, Deals, Apple Inc (AAPL), Pfizer (PFE), Gap Inc (GPS), Merck and Co (MRK), Analyst initiations, salesforce.com inc (CRM), Suntech Power Hldgs ADS (STP)

Before the bell: Futures higher as oil bursts through $135

It seems that the BCE (NYSE: BCE) buyout plan, has hit yet another bump on the road, only this one could not be as easy to overcome. A Quebec appeals court reversed a lower court and rejected the $33 billion buyout plan accepting the claim of a group of bondholders that the deal is unfair to them. BCE shares are plunging nearly 15% in premarket trading.

Earnings today are due from Barnes & Noble (NYSE: BKS) -- just after the company said it was interested in buying Borders (NYSE: BGP) -- and Gap (NYSE: GPS) -- a day after the clothing retailer announced an expansion in Russia.

Suntech Power Holdings Co. (NYSE: STP) shares are jumping over 7.5% in premarket trading after the solar energy company reported that first-quarter earnings more than doubled on 76% higher revenue. Earnings reached $55.8 million, or 33 cents an American depositary share and revenue reached $434.5. Analysts estimated 28 cents for the quarter.

Salesforce.com (NYSE: CRM) late Wednesday reported first-quarter net income of $9.6 million, or 8 cents a share, 13 times higher than the comparable period last year. Sales grew 53% to $247.6 million. Analysts had expected earnings of 7 cents a share on revenue of $235.8 million. CRM was upgraded by a few analysts.

Apple Inc. (NASDAQ: AAPL) was initiated with Outperform and a $235 target at Oppenheimer.
Pfizer Inc. (NYSE: PFE) anti-smoking drug Chantix received another blow Wednesday after a nonprofit group's report about serious physical side effects prompted the Federal Aviation Administration to ban the drug's use by pilots and air traffic controllers.

Staying in pharma, Merck & Co. (NYSE: MRK) has halted a study of an experimental drug, MK-0524A, which was supposed to bring new life into sagging cholesterol franchise The FDA has already refused to allow sales of the drug.

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Gap plans foray into Russia -- will it work?

Zac Bissonnette — 2008-05-21T09:50:00+00:00

Filed under: Russia, Gap Inc (GPS)

Gap Stores (NYSE: GPS), the parent company of Gap, Banana Republic and Old Navy, has been threatening to revitalize its U.S. stores for years. But with the stock down more than 50% since the dawn of the new millennium, the company has failed to restore its brands to relevance.

Now the company has announced that it will partner with Fiba Holdings A.S. to pen Gap and Banana Republic stores in Russia. Fiba will act as the franchise partner, just as it does for the company's stores in Turkey. Stores will be begin opening in time for the holidays.

Its possible that Gap will be able to regain some strength by focusing on international opportunities. Domestically, it's hard to think of a more passé fashion brand. But just as American baseball players on the decline often head to Japan and find success, once-iconic American fashion brands sometimes find new life overseas. Apax Partners' success with the Tommy Hilfiger brand is a prime example.

For now, though, I think investors should stay away from shares of Gap.

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Before the bell: GM, BKS, LTD, CRM, MSFT, GPS

Melly Alazraki — 2008-05-21T08:35:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), General Motors (GM), Gap Inc (GPS), Limited Brands (LTD), salesforce.com inc (CRM)

General Motors (NYSE: GM) reached an agreement with workers at its Kansas City, Kan., assembly plant Tuesday that could help it end a string of labor problems. The deal could end the strike of 2,500 workers at the factory, which makes the hot-selling Chevrolet Malibu as well as the Saturn Aura, since May 5.

Barnes & Nobel (NYSE: BKS) is exploring a possible bid for rival Borders (NYSE: BGP), according to a report in the Wall Street Journal.

Reporting today: Limited Brands Inc. (NYSE: LTD) which is forecast to post earnings of 8 cents a share in the first quarter and Salesforce.com Inc. (NYSE: CRM), which is forecast to post earnings of 7 cents a share in the first quarter among other companies.

This plan may have been in place long before Yahoo (NASDAQ: YHOO) has rejected Microsoft (NASDAQ: MSFT), but it seems that after that failed too, the software giant is set to announce a new program Wednesday, the Live Search Cashback where it will return money to online users who find and buy selected products through its Live Search engine. Only a portion of the purchase price, of course, between 2-30%. Silicon Alley Insider say it's a great idea that won't work.

Gap Inc. (NYSE: GPS) will introduce its Gap and Banana Republic brands in Russia through a partnership with Fiba Holding AS.

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Retailers ditch higher-end fashion plans

Zac Bissonnette — 2008-05-19T10:00:00+00:00

Filed under: Marketing and advertising, Coach Inc (COH), Gap Inc (GPS), Liz Claiborne (LIZ)

Shares of companies like Coach (NYSE: COH) were flying high when more people than ever were flocking to waste their money on stuff they couldn't afford.

Right at the top of the market, predictably, all the lower-end retailers thought they'd get into the act. Gap (NYSE: GPS)'s Banana Republic introduced a high-end line, and so did Coldwater Creek (NASDAQ: CWTR), Cache (NASDAQ: CACH) and AnnTaylor (NYSE: ANN). According to the Wall Street Journal (subscription required), the economic downturn gave the companies a strong rebuke. Cache is closing some of its Cache Luxe stores and Coldwater Creek is giving up on its high-end aspirations.

But I don't think it's the economic downturn that doomed these product launches. Luxury clothing is in a tough spot, but it's certainly fared a lot better than upper-middle market companies like Liz Claiborne (NYSE: LIZ) and Coldwater Creek. Rather, I think companies are using a pretty familiar tactic: blame failed strategies on the economy and minimize the impact of tactical errors made by seven-figure executives.

Here's why the strategy failed: taking a brand and raising the quality/price-point is extremely difficult. The reverse is easy, but trying to convince people to pay Coach-like prices for Banana Republic clothing -- even if it's of similar quality -- is a strategy that's destined to fail. Banana Republic has established itself at a certain price point and while people would be thrilled to get the brand at a lower price, most people willing to pay more will want a bona fide luxury label.

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Option Update: Wal-Mart volatility low; shares near four-year high into EPS

Paul Foster — 2008-05-09T13:34:00+00:00

Filed under: Wal-Mart (WMT), Gap Inc (GPS)

Wal-Mart (NYSE:WMT) is scheduled to report Q1 on May 13. WMT June option implied volatility of 23 is below its 26-week average of 26 according to Track Data, suggesting decreasing price risk.

Gap (NYSE:GPS) is scheduled to report Q1 EPS on May 22. Buckingham Research says "We continue to rate the shares of GPS as Neutral due to valuation and lack of progress on a turnaround." GPS June option implied volatility of 41 is near its 26-week average, suggesting non-directional price risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Early analyst calls (GPS) (PCLN)

Douglas McIntyre — 2008-05-02T08:00:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Gap Inc (GPS)

Bank of America downgraded GAP (NYSE:GPS) to "neutral" according to Briefing.com. The news service also reports that Citigroup has downgraded Priceline (NASDAQ:PCLN) to "hold" from "buy"

RBC Capital Markets said that sales at Digital River (NASDAQ:DRIV) were above its estimates and kept its "outperform" rating on the stock, according to the AP.

ComScore (NASDAQ:SCOR) was raised to "outperform" at Oppenheimer according to 24/7 Wall St.

Douglas A. McIntyre is an editor at 247wallst.com.

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