Friday, March 7, 2014
- Sportsman's Wearhouse, owner of 47 outdoor sporting goods stores across 18 states, has filed for a $201.3M IPO under the symbol SPWH. The underwriters: Credit Suisse, Goldman, Baird, William Blair, Piper, Wells Fargo, and D.A. Davidson.
- Sportsman's is being taken public by P-E firm Seidler Equity Partners (82.8% stake). During the 39 weeks ending Nov. 2, the company had revenue of $467.4M (+38% Y/Y), and net income of $14.4M.
- Sportsman's store count grew by 14 over this period, and same-store sales rose 7.2%.
- Bed Bath & Beyond (BBBY) cuts its FQ4 outlook after it says severe weather led to 464 times a store was closed for a full day and 1,923 times a store was closed for a partial day.
- Forecasts FQ4 (March) EPS of $1.57-$1.61 vs. prior guidance of $1.60-$1.67 and analyst consensus estimate of $1.65, and sees comparable store sales up 1.7% vs. previous guidance of 2%-4% gains.
- BBBY +0.2% AH.
- Boeing (BA) says a manufacturing problem had caused hairline cracks in the wings on some of its 787 Dreamliner jets, requiring inspections on 42 aircraft and delaying the delivery of some to airlines.
- The defect is another headache for Boeing, which is working to consistently produce 10 Dreamliners per month this year; the company says it still plans to deliver around 110 of the jets in 2014.
- Boeing says none of the 123 787s already delivered are affected by the wing issue.
- BA -1.1% AH.
- The FBI reportedly has taken over Idaho's criminal investigation into private prison company Corrections Corporation of America (CXW -0.5%).
- CXW already has agreed to pay Idaho $1M to settle claims it had understaffed the state's largest prison by thousands of hours in violation of the state contract and that employees falsified reports to cover up the vacancies.
- Tesla Motors (TSLA -1.8%) has eliminated California as a site for its Gigafactory, according to The Los Angeles Times.
- The cost of the real estate needed to build the Gigafactory on is believed to be the primary reason the EV automaker would shun the state where its sales are the strongest.
- Though Arizona, Texas, and New Mexico are in the running for the massive battery plant, Nevada appears to be the best bet to win out.
- A line of clothes inspired by McDonald's (MCD -0.5%) was the surprise inclusion at recent fashion shows in Europe as part of Moschino's latest designs
- The fashion house is also displaying styles from Anheuser-Busch InBev and Hershey in an Andy Warhol-inspired homage to pop culture.
- Seeing is believing: $1,265 McDonald's-inspired Moschino handbag
- Big Lots (BIG +20%) says it will add freezers and coolers to hundreds of stores this year in a move that will help it capture some of the food stamps business.
- The company noted that stores with refrigeration units out-performed in recent quarters.
- Dollar General (DG -0.6%) and Family Dollar (FDO -1%) have adopted a similar tactic to draw in consumers with food stamps.
- Shares of SeaWorld Entertainment (SEAS -5.3%) as lower after lawmakers in California start to work on and publicize proposed legislation in the region to phase out Orca Whale captivity.
- The group points out that other states already limit the practice of displaying the large marine animals in enclosed spaces.
- The company is likely to be called out during a press conference later today by Assemblyman Richard Bloom.
- MasterCard (MA +0.3%) and Visa (V +0.5%) will form a new group with a focus on pushing forward the adoption of EMV chip technology in the U.S.
- The entity will work across financial and retail sectors to advocate for the use of the technology in the payments industry.
- Banks and retailers have been slow to warm up to the EMV initiative due to front-end costs, but the high-profile data hack at Target has teed up the issue in Washington DC.
- K-Cup data from IRI gives a look at which coffee companies are showing the most momentum.
- Green Mountain Coffee Roasters (GMCR) is the market leader at 20% share, a tally which doesn't include partner brands such as Donut House (6%) or Revv (1%). Starbucks (SBUX) claims 13% and Folgers (SJM) is at 12% share.
- On a unit growth sales basis, Starbucks was up 47% Y/Y (period ending 1/26/14) to power past Green Mountain's 29% pace and Folgers at 22%.
- Private labels saw K-Cup unit growth of 471% as new brands emerged over the last year following patent freedom.
- Dish Network (DISH -0.2%) and DirecTV (DTV -0.7%) are pleased as punch that a House committee released a draft satellite bill which addresses joint negotiating agreements among broadcasters.
- The companies thinks legislation in the area will help lower consumer costs and assist in keeping service available to distant signal customers. Presumably, there's some benefit to the satellite players as well.
- The joint PR is boiler plate stuff, but anytime Dish and DirecTV get in the room together there is some merger chatter.
11:10 AM| Comment!
- LA Fitness plans to sell 40% of its gyms as it seeks to lower its debt load.
- The health club chain is owned by P-E firn MidOcean Partners.
- The downward spiral of LA Fitness follows a general trend in the sector as low-cost fitness shops apply significant pressure.
10:20 AM| 8 Comments
- Big Lots (BIG +21.3%) rips higher after the company solves its Canadian headaches.
- Losses from operations in Canada during Q4 were much lower than analysts forecast and the retailer says it will pull out of the nation completely during Q1.
- The exit was tipped off previously, but the details today showed an accelerated timetable.
- A new $125M buyback has also been approved by the company.
- Shares of The Fresh Market (TFM) advance in early trading despite an earnings miss by the company yesterday.
- The grocery store operator set Q1 expectations a bit below Street estimates, but its FY14 EPS forecast of $1.56-$1.66 is well-above consensus.
- Investors seemed cheered by word from the company during its conference call that it will take a more "cautious" approach to expansion.
- Earnings call transcript
- TFM +2.7% premarket