Consumer Cyclical Sector Review: Lululemon Wins, Skechers Dumps Kardashian
BorgWarner Inc. (NYSE:BWA): Issuing upside FY12 EPS guidance and in-line revenue guidance cause BorgWarner shares to power higher. The supplier of engineered automotive systems and components sees EPS up from consensus of $5.21 to $5.35-$5.65, revenues +10%-12% vs. ~12% consensus, and operating income margin of 11.5% or better, which would be a new record. The shares closed at $72.25, up $7.89, or 12.26%, on the day.
Lululemon Athletica inc. (NASDAQ:LULU): Lululemon strengthens its outlook for Q4, moving its guidance for EPS from $0.40-$0.42 to $0.47-$0.49 and bumping up its sales mark from $327M-$332M to $358-$363M. The retailer says a strong consumer reaction to its holiday assortment will lift same-store sales to a low-to-mid twenties percentage gain, higher than its initial estimate calling for growth in the low to mid-teens. The shares closed at $59.87, up $6.43, or 12.03%, on the day.
Skechers USA, Inc. (NYSE:SKX): Perhaps buoyed by word that the company is planning another Super Bowl commercial during the prime two-minute warning time slot, shares of Skechers soar. Last year, the firm garnered a lot of attention after running an intriguing ad featuring Kim Kardashian that became water cooler material. The shares closed at $12.42, up $0.96, or 8.38%, on the day.
The Goodyear Tire (NYSE:GT): Unseasonably warm weather is hurting winter tire sales, according to Goodyear Tire CEO Richard Kramer, causing shares to plunge 10%-plus in the past half-hour. Kramer says GT is on pace to meet 2013 goals but recent trends have been challenging, with volume softness across all categories. The shares closed at $14.01, down $1.27, or 8.31%, on the day. Its market capitalization is $3.42 billion.
Ford Motor Company (NYSE:F): Due to the Thailand floods, Ford CFO Lewis Booth says the company will post a Q4 loss for the Asia-Pacific region. However, the company has not changed its Q4 profit outlook. The shares dive about 2.5% on the news, but remain +0.5% on the day. F shares closed at $11.80, on the day. Its market capitalization is $44.84 billion.