Abercrombie and Target Top These Highly Active Consumer Stocks
Abercrombie & Fitch’s (NYSE:ANF) gross margin fell 350 bps Q/Q, to 60.1%, and same-store sales were up 7% Y/Y. A&F same-store sales rose 4%; Abercrombie Kids rose 6%; and Hollister Co. rose 8%.
PepsiCo’s (NYSE:PEP) Nelson Peltz who owns 2.3M shares of the company, is at it again. Instrumental in the Kraft (NYSE:KFT) breakup, Peltz made the suggestion that the firm should split its snack and beverages divisions into two separate entities. The New York Times reported on the brawl that erupted over the sharp division, which is one reason the board announced last week that it was putting off an investor update on its business plan until next year.
AMR Corporation (NYSE:AMR) stepped-up talks with pilots, amid a 10% slip yesterday, though it has failed to produce an agreement on a new labor contract. The board may need to weigh in on a bankruptcy filing as a result. Sterne Agee’s Jeff Kauffman sharply suggests directors should consider alternatives now rather than watch cash reserves keep dwindling without an agreement.
Starbucks (NYSE:SBUX), has raised prices on a number of drinks in several major U.S. markets, including Los Angeles and Chicago. The company has been dealing with high coffee bean price, and increased prices for its grocery packaged coffee in March.
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OfficeMax (NYSE:OMX) announces a strategic pilot program with RadioShack (NYSE:RSH). RSH employees will be allowed to sell electronics, wireless phones, and service plans in 15 OfficeMax stores in the San Francisco area. The unique agreement aims to boost sales for both firms and create synergy for a possible expansion of the program.
Target’s (NYSE:TGT) well-received Q3 report made known that many of the firm’s initiatives were dead on. Its 5% credit card discount program and higher-end Missoni line launch were winning ideas. The challenge now is navigating around a crucial Black Friday with a grassroots online protest against its Thanksgiving Day opening. Also of issue is a scarily unstable website that keeps executives nervous about the potential for an ill-timed outage.
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