Check out a nice GE convection oven.
 
It may be for sale, along with the rest of GE’s appliances division.
 
General Electric said it is seeking “strategic options” for the appliance business, which could include a partnership, spinoff or sale.
 
Lots of consumers are familiar with GE refrigerators, dishwashers and the like. But the business accounts for only about 4 percent of the company’s sales. It takes a lot of dishwashers to equal one jet engine.
 
Aside from aviation, the company’s other business lines include energy, electrical distribution healthcare and media & entertainment (think NBC television.)
 
So why keep holding on to appliances, especially when that business is being hurt by the long-running housing slump?
 
Also in the basket:
 
Abercrobmie & Fitch profit tops view
 
Macy’s to have FAO Schwartz boutiques in stores
 
Old-style pumps balk at $4-a-gallon gas, too (Washington Post)

U.S. department store sales weak, but beat Street

(Reuters photo)

Check out the 50 percent drop in quarterly profit at JC Penney.

The mid-tier department store operator had warned in late March that its first-quarter profits would be hammered after a drop in store traffic and dismal Easter sales forced it to cut prices to clear out unsold merchandise.

Penney shoppers can expect more price cuts on future visits to the retailer. 

The department store operator said it is now trying to get inventory in its stores to better match the weak sales environment, meaning it will roll out more promotions and cut future merchandise orders.

Based on its forecast, Penney is expecting profits to decline yet again in its second quarter.

It forecast earnings per share of 38 cents–a dramatic drop from the 78 cents per share of earnings from continuing operations it reported a year ago.

Also in the basket:

Tiffany ups payout, sees 1st-qtr topping estimates

Tyson sees less, but more expensive, chicken

Blockbuster swings to profit in first quarter 

(Photo: Reuters)

Check out Macy’s profit, or loss, depending on how you count.
 
The department store operator posted a $59 million loss in the first quarter, hurt by a drop in sales and the costs of restructuring.
 
So of course its stocks jumped.
 
Restructuring charges are seen by the investment community as “one-time items” and are generally disregarded when looking at how well a company did in any given quarter. 
 
So without ”one-time items” Macy’s posted a profit of 2 cents a share from continuing operations. That was better than the 2-cents-a-share loss that analysts expected.
 
Macy’s also affirmed its forecast for a profit of $1.85 to $2.15 a share for the year, possibly a sign that things at least are not getting worse for the company, which, like most department store operators, has been hurt by the slumping U.S. economy.
 
Of course, that forecast excludes “one-time” items.
 
Also in the basket:
 
Barney’s Socol quits, no clear successor (WWD)
 
Benetton Q1 profit, sales up, outlook confirmed

(Photo: Reuters)

On Tuesday, Wal-Mart Stores Inc, the world’s largest retailer said its first-quarter profit rose 7 percent. U.S. shoppers headed to the discount retailer to load up on basics, like groceries and health care items. They also bought electronics as they try to spend more time amusing themselves at home instead of burning through costly gas driving around town.

But Wal-Mart gave a cautious view for Q2. It forecast earnings per share of 78 cents to 81 cents, while analysts on average are expecting 81 cents. And it said second-quarter U.S. same-store sales could be flat to up two percent.

Wal-Mart’s finance chief, Tom Schoewe, told Reuters the retailer is being “appropriately conservative” with its forecast, unsure of how much tax rebate money will be spent in its stores or how well consumers will hold up amid the struggling economy.

But Wall Street is betting that caution now will mean upside in the future.

Here are some comments from analysts on Wal-Mart’s forecast:

Uta Werner, analyst, Sanford C. Bernstein, in a note: “Given WMT’s strong first quarter performance and management’s relative optimism and positive tone on the pre-recorded call, we are surprised by the company’s seemingly conservative 2Q09 outlook.  While we appreciate that it is difficult to quantify the precise impact of stimulus checks, we nonetheless would expect at least some benefit to sales at the stores and Sam’s, and find both EPS and comps guidance surprisingly conservative.”

Neil Currie, analyst, UBS, in an interview with Reuters:  “With positive traffic and improving momentum in apparel … and the stores looking better and better all the time, I think they’re in good shape to at least be on the higher end of expectations.”

Adrianne Shapira, analyst, Goldman Sachs, in a note: “We’d note 2Q EPS could prove conservative as it does not include the potential benefit from the fiscal stimulus package. Therefore, much like 1Q when on the heels of better monthly comps, WMT was able to raise guidance intra-quarter, we believe setting an achievable and potentially beatable bar in today’s tough environment is the prudent way to provide guidance. As such, we would view any pullback in shares as a buying opportunity as we believe WMT remains best positioned in today’s tougher macro with potential upside to EPS from the fiscal stimulus.”

(Reuters Photo: Schoewe has his costume torn away by members of the Anti-Gravity dance troupe before addressing theWal-Mart Annual Shareholders Meeting in Fayetteville June 2007) 

Check out Wal-Mart’s earnings.

The world’s largest retailer posted a 7 percent rise in quarterly profits.

But even as the discounter drew cash-strapped consumers looking to save money, the company also indicated that it could miss second-quarter earnings estimates, which pressured its stock price in the morning.

Consumers are being hit by higher transportation costs and a difficult economic climate, the company acknowledged.

“Customers are faced with results of a tougher economy, higher gas prices, food inflation and the increase in the overall cost of living,” said Eduardo Castro-Wright, head of Wal-Mart’s U.S. operations, on a recorded call.

It also is becoming more obvious that customers are running out of money between paychecks as the company sees business ebb and flow with the paycheck cycle, the retailer said.

Also in the basket:
 
Pain at the other pump: shoe prices rise (Wall Street Journal)
 
Liz Claiborne posts net loss, cuts year outlook

Check out things looking a little better in retail?
 
Ann Taylor raised its forecast for first-quarter earnings, citing improved results at its LOFT chain and stronger expense control.
 
This comes a few days after many retailers posted better-than-expected sales in April and could mark the start of a trend.
 
Goldman Sachs said the better April could lead to modest first-quarter earnings beats.
 
“This will be particularly evident across the department store sub sector as most management teams reduced their earnings outlook post March results, which fell short of plan. Kohl’s has already kick started this trend stating EPS would ‘exceed’ previous 40 cents to 42 cents guidance. We suspect J.C. Penney will follow suit, beating management’s 50-cent forecast … given high end of plan sales,” Goldman said in a research note.
 
Retail earnings get going in earnest this week with reports from Wal-Mart, Macy’s, J.C. Penney and others.
 
Also in the basket:
 
April retail sales barely budged: SpendingPulse
  
Luxury brands Prada, Ferragamo risk competing IPOs

(Photo: Reuters)

Check out the virtual coupon clippers.
 
Consumers are turning more to the internet for ways to save money, seeking out websites that let you clip coupons.
 
According to Hitwise research director Heather Dougherty, “the market share of visits for a custom category of 11 printable coupon websites is up 85 percent for the week ending May 3, 2008 as compared to the same week last year.”
 
People are spending more time on those sites, she said, spending an average of 6 minutes and 14 seconds, up from 4 minutes and 29 seconds a year ago.
 
Meanwhile, searches for the generic term ‘coupons’ are up 45 percent for the week ending May 3, 2008, compared to the same timeframe in 2007. (Find Dougherty’s full post here).
 
Among the top coupons being searched for are ones from Dell. Apparently so you can get a new computer. And search for more coupons.
 
Also in the basket:
 
Hugo Boss CEO to be replaced “shortly” - Valentino
 
Quirky restaurant ads yield to tried and true (N.Y. Times)

Check out the warning signs sprinkled amid the April sales results.
 
A lot of retailers reported better-than-expected sales in April as improved weather in parts of the country helped convince consumers to buy new clothes.
 
In fact, 61 percent of retailers that have reported so far beat estimates, according to Thomson Reuters research. Discounters, department stores and teen apparel retailers were among those posting the biggest upside surprises.
 
But amid those results were some comments that could be cause for worry going forward.

For example, J.C. Penney reported a less-than-expected decline in April same-store sales, but said it sees a steeper drop in May. It also said those rebate checks consumers are getting will provide, at best, only a modest benefit for sales and that any boost will be short-lived.
 
Wal-Mart had a better-than-expected same-store sales increase in April, but  gave a tepid outlook for May. The discount retailer said consumers are trying to stretch their dollars by purchasing cheaper types of meats or trading down to pasta.
 
Adding to worries, Wal-Mart said the “paycheck cycle” is getting more obvious, meaning it is seeing a drop in sales at the end of the month, just before consumers get paid.
 
Elsewhere, Target reported weakness in areas hard hit by the mortgage meltdown, including Florida, Arizona and Nevada.
 
Gap same-store sales actually fell more than expected in April and the company said the economic environment remains “volatile.”
 
The market seems to have picked up on the negativity, as the Standard & Poor’s retail index is down almost 2 percent.
 
Also in the basket:
 
Best Buy enters Europe with Carphone retail deal
 
Search said to be on for new Kellwood CEO (WWD)
 
Sally Beauty profit tops view; shares jump 
 

Granada Nation has spoken: Barack Obama is no car guy.

No stranger to criticism from the U.S. auto industry, The Illinois senator and presidential candidate made it personal this week when he singled out his candidate for Detroit’s “worst car” ever: the 1970s-era Ford Granada.

The cutting comment came in an interview with an Indiana radio station, was picked up by the Detroit News, seized on as a talking point for Detroit radio and was last seen rattling around Internet chatrooms by Thursday.

Obama said he had learned to drive on his grandfather’s Ford Granada, a boxy, big-engined sedan that Ford once tried to market as a kind of Everyman’s Mercedes-Benz.

The Illinois Senator did not remember it so fondly.

“It may be the worst car that Detroit ever built. This thing was a tin can. It was during the ’70s when oil had just gone up so they were trying to compete with the Japanese. They wanted to keep the cars big, so they made them out of tin foil,” he was quoted as saying. “It would rattle and shake. You basically couldn’t go over 80 (miles per hour) without the thing getting out of control.”

Fans of the Granada, which made a cameo in last year’s Academy Award-winning drama “No Country for Old Men,” rushed to the defense of a car killed with little fanfare 25 years ago.

“I’m a Barack voter, but I disagree with him on the Granada,” said Jesse Sweigart, a 32-year-old computer engineer in Columbia, Pennsylvania.

Sweigart said his 31-year-old Ford Granada, bought on a whim for $400 over a year ago, runs like a dream and gets better gas mileage than his newer Dodge truck. “They really put things together back then,” he said.

Tom Peterson, another enthusiast, said Obama was wrong to suggest the big Ford featured flimsy “tin foil” since it was a heavyweight in its late 1970s heyday. “If Obama actually said this, it sounds like (a) politician gum-flapping based on no knowledge,” he said.

“Here comes Granadagate,” wrote one Web poster. “We should invite Barack to drive a couple of our rides. Time heals all wounds.”

Sweigart offered to let Obama take a spin down memory land if the presidential campaign takes him back to Pennslyvania.

“I think if he got behind the wheel it would all come back,” he said. “I’d be happy to give him a ride to the next state.”

In the meantime, Obama may have some damage control ahead with voters in Michigan’s still auto-heavy economy. The Michigan Democratic delegation remains in play ahead of the party convention in August, and polls show Republican John McCain as a strong challenger to Obama in a prospective match-up in the 8th most populous state.

– By Kevin Krolicki in Detroit

Can the running shoes we buy really help protect the environment?

According to a new list by nonprofit group Climate Counts, Nike ranked first among the world's most climate-friendly companies.

In its second annual report, Climate Counts ranked companies based on efforts to reduce greenhouse gas emissions, support of global warming legislation, public disclosure of their efforts to address climate change, and whether they measure their impacts on the environment.

Nike ranked well in all those areas, garnering a score of 82 out of a possible 100 points. Stonyfield Farm, IBM, Unilever, Canon, General Electric, Toshiba, Procter & Gamble, Hewlett-Packard and Sony rounded out the list's top 10.

Google, Anheuser-Busch and Levi Strauss logged the largest score improvements, each jumping over 20 points since last year. The average company score improved 22 percent over last year, when Canon was the top scorer.

Who were the losers? In a word, restaurants.

Olive Garden and Red Lobster owner Darden Restaurants, Wendy's and Burger King each scored zero out of 100 points, while KFC and Taco Bell owner Yum Brands registered a single point for encouraging reduction of energy consumption.

Jones Apparel Group was the only other company to receive a score of zero.

For Climate Counts' full list, click here.