Rob Black's Retail Stock Report

Barron's reports Brown-Forman's (BF.B) fortunes hinge on Jack Daniel's, which accounts for some two-third of profits. The brand is benefiting from a growing consumer preference for liquor over beer, and a predilection among younger drinkers worldwide for bourbon. Fans argue the stock could top 80 in a year. Class B shares trade for 21 times projected profits. Brown-Forman no longer trades for a big premium to its chief liquor rivals, Diageo (DEO) and Pernod Ricard, though its earnings are likely to grow by double digits in coming years.

Barron's Online reports in the past 90 days, seven executives and directors from Anheuser-Busch (BUD) grossed $33 million disposing of nearly 652,200 shares on the open market, according to Thomson Financial data.

ConAgra Foods (CAG) expects to record a third-quarter charge of between $50 million and $60 million related to last week's recall of certain Peter Pan peanut butter products. The Omaha, Neb.-based company said its outlook for earnings for fiscal 2007 is being adjusted lower to reflect the charge and but it added that earnings will likely be towards the low end of this range after taking into account costs from the recall and several areas performing better than planned. For fiscal 2008 through 2010, ConAgra forecast sales growth of 2% to 3% annually and earnings per share acceleration of 8% to 10% per year, excluding items.

A new strategy aimed at returning Kraft (KFT) "to predictable and consistent growth" will take its toll on short-term profits. Restructuring and reinvestment costs tied to the program, along with a higher tax rate and the impact of divestitures will sap future earnings. Further out, in 2008, the company said it expects revenue to grow 3% to 4% on an organic basis, and "by 2009, we'll hit our stride," said chief executive Irene Rosenfeld. "We'll fully realize the financial benefits of our investments and deliver our long-term targets of at least 4% organic net revenue growth and 7% to 9% EPS growth."

United Natural Foods (UNFI) said income rose to $11 million from $10.6 million. Net sales rose to $668.5 million from $601.1 million. The natural foods distributor said it is expanding its operations in the Pacific Northwest and is building a distribution center in Ridgefield, WA. The new facility will create approximately 100 jobs upon opening.

eBay (EBAY) is fiercely resisting a Bush administration plan it says will force it to snitch on customers who are not paying tax on billions earned on the popular online auction site. The Treasury estimates it could collect $2 bln in unpaid tax if cos such as eBay reported American users who carry out more than 100 transactions worth at least $5,000 a year to the IRS.

The Wall Street Journal reports Wal-Mart's (WMt) prospective partner in India, Bharti Enterprises Ltd., said it would invest as much as $2.5 billion in new stores in the next eight years and will look to Wal-Mart to provide supply-chain management and technology in a collaboration that is being viewed as a test case for foreign retailers here. Bharti and Wal-Mart are expected to finalize their agreement soon.

CSK Auto (CAO) said sales rose 17.2% in the fourth quarter to about $464 million from $396 million a year ago. For fiscal 2006, the Phoenix-based automotive aftermarket parts retailer's net sales increased 15.2% to $1.87 billion. Same-store sales slipped 0.7% for the fourth quarter and 1.5% for the year.

Empire Resorts (NYNY) said that New York Gov. Eliot Spitzer issued a "concurrence" to an April 2000 finding that a gambling operations in Sullivan County run by the St. Regis Mohawk Tribe would be in the best interests of the tribe and wouldn't hurt the surrounding communities.. Empire said Spitzer also signed the Tribal-State Compact Amendment, authorizing gaming at a Monticello, N.Y., site where the tribe plans to build a casino.