Check Out the declining quarterly profits at Estee Lauder, Hanesbrands and Black & Decker.

Cosmetics maker Estee Lauder reported lower first-quarter profit as higher expenses offset a rise in sales. Expenses also hurt Hanesbrands. The underwear manufacturer posted lower third-quarter profit, dragged down by higher interest expense. At Black & Decker, weakness in the U.S. housing market and higher commodity prices were the culprit.

Meanwhile, Cott posted a loss as restructuring charges and weak demand in North America hurt the retail-brand soft drink maker.

Perhaps the tense environment has consumers turning to Reynolds American and UST for some relief.

Reynolds American reported a 16 percent rise in quartelry profit, helped by sales of smokeless tobacco, while UST said its third-quarter profit rose, helped by increased sales of smokeless tobacco and strength in its wine business.

Also in the basket:

Mattel Inc recalls 12,000 toys - EU Commission

Big Lots sees third-quarter comps below expectations

Whole Foods and FTC battle over antitrust review

Check out the drop in Amazon’s operating margin and what it did to the stock.
 
The world’s largest online retailer posts earnings that beat analysts expectations and forecast higher fourth-quarter revenue than many analysts expect. And still its stock was down more than 9 percent in premarket trading on Wednesday morning.
 
The culprit? Lofty expectations that were dampened by a drop in margins. Operating margin fell to 3.8 percent of global sales from 4 percent in the previous quarter.
 
Amazon had been trading at about 59 times projected earnings, well above the multiples for online auction site eBay (22 times) and Wal-Mart, the world’s largest retailer (13 times).
 
Global Crown Capital analyst Martin Pykkonen said the stock was still trading at twice Google’s multiple of estimated 2008 earnings.                 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â  Â 
“That’s priced to perfection and you’re not getting perfection here,” he said.
 
Also in the basket:
 
Talbot’s sees loss in second half on weak sales
 
Coca-Cola Enterprises profit in-line with estimates
 
Ethan Allen Posts higher profit, sales
 
P.F. Chang’s third-quarter earnings drop

Wrigley third-quarter profit up on Europe, Asia

Wal-Mart Stores Inc, the largest U.S. retailer, said on Tuesday it will cut capital spending for the current fiscal year even more steeply than it previously announced. 

The company said it’s now planning for capital expenditures to be between $14.7 billion and $15.4 billion, down from the $15.5 billion spending forecast it gave in June.

Wal-Mart, which is trying to boost sales at its existing stores, will also open fewer supercenters. Analysts and investors have pushed the company to pare down its aggressive expansion as sales at existing stores have slowed amid many saturated markets.

After Wal-Mart’s announcement, the Dow Jones industrials and S&P 500 index pared early gains to edge lower Tuesday morning. The Dow fell 14 points to 13,550, while the S&P 500 slipped 2 points to 1,504.

(Photo Source: Reuters)

Check out Target sales again missing their forecast.
 
When it comes to monthly sales, Target’s are once again missing the mark.

On Monday, the discount retailer cut its October same-store sales forecast to an increase of 2 to 4 percent. The previous forecast called for a 3 to 5 percent increase.

Target cited “greater-than-normal daily volatility and continued disappointing sales results for the first two weeks of November.”

Target’s mid-month sales update is closely watched by investors because it is one of the earliest signs of how retail sales in general might be going.

As we get closer to the key holiday shopping season, sales are even more closely scrutinized for signs of whether the U.S. economy is slowing into a consumer-led recessions.

Also in the basket:
 
Whirlpool profit rises but U.S. sales weaker

Coach reports higher 1st-quarter profit
 
Nike scores $580 million UK Umbro win
 
Brinker 1st-quarter profit falls

Those were the sentiments of Regis Corp CEO Paul Finkelstein on a conference call with analysts this morning.

Finkelstein was talking about changing trends and noting that the fashion cycle was finally turning to shorter hair — which should mean more sales for the hair salon company.

Regis salons, which include the Vidal Sassoon, Mastercuts and Jean Louis David chains, have long lamented the recent “more casual” lifestyle and long hair trends that have resulted in weak sales for the Minneapolis company.

Now, thanks to the aging population and an encouraging shorter-hair trend, Finkelstein says salon services sales are on the road to recovery.

While more women may now be turning to shorter hairstyles, Finkelstein talked nostalgically about the 1960s, when he said women were walking into their salons about 50 times a year - almost once a week.

“We allowed her two weeks off for vacation,” Finkelstein said.

(Photo: Reuters)

It’s that time of year again — when Wall Street analysts head to Bentonville, Arkansas, home of Wal-Mart Stores, to hear what the world’s largest retailer has to say about its plans for remaining the world’s largest retailer.

Wal-Mart typically uses its analyst meeting to outline its capital spending and store expansion plans. It is also expected to talk about its Sam’s Club warehouse division, its overseas efforts and the state of the industry.

Here are what some analysts says they will be listening for at the meeting, which begins on Tuesday and ends on Wednesday:

From UBS analyst Neil Currie:

We hope the hot topics at this year’s meeting include: 1) a definitive timeline for the Wal-Mart US turnaround, particularly as it relates to Apparel, Home, any potential further management change and improved store execution; 2) Growth plans for 2008 and beyond; 3) details on the rumored small store formats; and 4) International growth versus returns.

From Goldman Sachs analyst Adrianne Shapira:

Focus comments hinge on: (1) square footage growth guidance; (2) future capex plans; (3) increased promotions and rollbacks; (4) expense savings opportunities, and (5)  continued international expansion.

(She upgraded shares of the retailer to “conviction list buy” last week, saying the meeting might be a positive catalyst for the stock.)

From JP Morgan analyst Charles Grom:

Since Lee Scott took over as Wal-Mart CEO in January 2000, the stock has compressed ~5% vs. a 104% gain in Target and a 14% rise in the (S&P 500 index). While it’s hard to put all the blame on Mr. Scott, ultimately (as we recently found out with Yankee manager Joe Torre) someone needs to be held accountable. With this in mind, we’re hoping to hear a fresh perspective from Wal-Mart this week at its Analyst Day in Bentonville.

He will focus on:
Focus #1 - Capital Allocation, New Store Format, Buybacks?
Focus #2 - Rollbacks, Where Is the Break Even Point?
Focus #3 - Remodels, New POS System, Home & Apparel Updates?
Focus #4 - What is Allen Questrom’s Role on the Board?

(Photo: Reuters) 

Check out Hasbro’s possibility of luring some consumers away from Mattel.
 
The U.S. toy industry has had several highly publicized recalls this year for potential hazards related to lead paint and small magnets. Mattel, the industry leader, has had some of the biggest recalls.
 
While the publicity over the recalls has the potential to hurt all toy makers, Sterne Agee analyst Margaret Whitfield said recently that the recalls could help Hasbro, which was not part of the recalls.
 
“Recall concerns have apparently led consumers to avoid (Mattel’s) Polly Pocket toys given the magnet recalls on products produced before this year. Hasbro may capture some of the lost sales with its girl’s lines which include Littlest Pet Shop and My Little Pony,” Whitfield said last week in a research note.

On Monday, Hasbro posted an 18-percent increase in quarterly sales, helped by its international business, and higher quarterly profit.
 
Also in the basket: 
 
Jakks Pacific posts higher profit
 
Wal-Mart to acquire rest of Japan retailer Seiyu
 
Electrolux flat Q3 disappoints
 
Inditex sets up online home for furnishings (Financial Times)

(Photo: Reuters)

Check out Steve Madden weighing a possible sale of the company.

So, it was Steven Madden Co, and not Children’s Place that hired Peter J. Solomon to be its financial adviser. The shoe company announced today that with the mergers and acquisitions advisory firm’s help, it will weigh strategic options, including selling itself.

Madden has already had unnamed parties expressing interest in buying it. And some investors, Madden said, were egging it on to explore alternatives that will make shareholders happy.

The news comes after Madden indicated that it is heading into troubled times — it cut its full year sales and earnings outlook citing weak consumer spending and scant footwear trends to pursue. Its stock has plummeted 44 percent so far this year.

But, Madden warned, it was not offering any assurances that a deal would be reached.

Also in the basket:

Tiffany shares, options volume rise on store plan, takeout rumors

Overstock reports narrower third-quarter loss

McDonald’s third-quarter profit up as Asia shines

Japanese brewer Kirin seeks control of drug maker

Saks rejects Baugur Group takeover bid - NY Post

Wal-Mart warns Web sites to stop leaking Black Friday ads - CNN Money

(Photo: Reuters)

Check Out Wal-Mart’s latest round of price cuts.

The world’s No. 1 retailer said it would slash prices on 15,000 items in its toy, food, home and apparel categories. And more cuts are planned in electronics, home, food and toys in the coming days.

The announcement follows an earlier round of price cuts. The retail giant said on Sept. 30 that it would begin cutting prices on toys going into the holiday season.

The latest cuts are not a major surprise since Wal-Mart has already said it plans to be very aggressive this holiday season to try to lure shoppers to its stores. We’ve also already heard about cautious U.S. consumers – they are are expected to be frugal with their spending this holiday season as they grapple with high gas and food prices, and a troubled housing market.

According to a survey from the National Retail Federation, consumers intend to spend more for the holidays, but that spending will only rise at about half the pace that it did a year ago.

So, will these price cuts drive enough traffic to boost Wal-Mart’s results? Or will the discounts undermine its profits? Only time will tell.

Also in the basket:

Hershey profit dips as costs rise

Nestle sales up as it passes on raw material costs to consumers

Nike expects $1 billion China sales within a year

Target working on getting in all 50 U.S. states

Expenses trouble sandwich shop Cosi’s business (from the Wall Street Journal - subscription required)

(Photo : Reuters)

Check out Coca-Cola reporting better-than-expected quarterly results.

 The world’s largest beverage company may best be known for its namesake soft drink Coca-Cola, but it was strong sales of noncarbonated beverages, like Powerade and Dasani bottled water, and the weak dollar that helped spur a 13 percent rise in its third-quarter profit.

The weak dollar is also expected to help the beverage company’s fourth-quarter results as well.

CFO Gary Fayard told analysts that Coca-Cola expects a mid-single-digit benefit from foreign currency exchange rates on its fourth-quarter results.

Also in the basket:

Altria profit beats estimates

Grocer A&P quarterly loss widens

Carlsberg, Heineken plot offer for UK brewer

Tiffany to use smaller stores to boost US store base, sales 

Food Companies Face U.S. Probe Over Iraq Deals (WSJ)

(Photo: Reuters)