Update Nov. 26, 2008: See all 2008 Black Friday deals.
Hip retailer Urban Outfitters Inc. (NASDAQ: URBN) is expected to post earnings 22.9% higher than a year ago, to $0.35 per share, on revenue of $475.9 million (+26.4%). The Philadelphia-based company already said that same-store sales in the quarter were 10% higher. Urban Outfitters has beat expectations in recent quarters, by 11.5% in the previous quarter, and analysts on average recommend buying URBN. Shares fell to a 52-week low of $16.61 per share on Friday, and are down 29.5% from a year ago. Other companies expected to report more modest earnings growth in the coming week include watch and accessory maker Fossil Inc. (NASDAQ: FOSL), retail giant Wal-Mart Stores Inc. (NYSE: WMT), and TJX Companies Inc. (NYSE: TJX), parent of such discount retail chains as T.J. Maxx and Marshalls. These three companies have tended to top analysts estimates in recent quarters, and Fossil and TJX ended the week near their 52-week lows.
While Los Angeles-based American Apparel Inc. (AMEX: APP) had a strong second quarter, the casual wear maker is expected to report $0.13 per share earnings for the third quarter, the same as in the year-ago period. And analysts anticipate that Kohl's Corp. (NYSE: KSS) will report that profits fell 16.4% to $0.51 per share on revenue of $3.9 billion (+1.9%). Though same-store sales for October fell 9%, the Menomonee Falls, Wis.-based company reaffirmed its third-quarter forecast. Kohl's has offered positive surprises in recent quarters, topping estimates by 5.6% in the previous quarter. The consensus recommendation remains to buy KSS. Shares have been climbing after reaching a 52-week low in late October, but are still down 32.8% from a year ago.
Earnings declines are expected to be more substantial (between 40% to 55%) for Liz Claiborne Inc. (NYSE: LIZ), Nordstrom Inc. (NYSE: JWN), Abercrombie & Fitch Co. (NYSE: ANF), JCPenney Co. Inc. (NYSE: JCP), and Charlotte Russe Holding Inc. (NASDAQ: CHIC). While Nordstrom, Abercrombie, and JCPenney have offered positive surprises in recent quarters, only JCPenney is considered a buy. Shares of all of these companies have recently hit 52-week lows.
One of the biggest anticipated earnings decliners next week is specialty shoe company Crocs Inc. (NASDAQ: CROX). The expected $0.02 per share profit is 97.0% lower than in the year-ago quarter. Revenue is expected to come to $201.8 million, 21.3% lower. Despite the introduction of new products and expansion of its markets during the quarter, analysts seem to feel that short-term prospects for the company look bleak. The share price is marginally higher than its 52-week low of $1.66 from back in October, and down 93.9% from a year ago.
Cincinnati-based Macy's Inc. (NYSE: M), the largest department store chain in the U.S., is expected to have swung to a net loss of $0.19 per share, on revenue of $5.5 billion (-6.8%), from a year-ago profit of $0.10 per share. Like many retailers, 150-year-old Macy's reported lower same-store sales in October. It had already lowered its full-year guidance. Yet, Macy's has beat estimates in the past few quarters; in the first quarter, analysts had also expected a loss, but Macy's managed to squeak out a $0.02 per share profit. Shares have risen from a 52-week low in October, but they are still 57.6% lower than a year ago.
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