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 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)

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 
 

Dr Pepper Snapple Group debuted on the New York Stock Exchange Wednesday after being spun off from British candy and gum company Cadbury. 
 
The company is putting together a five-year plan to improve its business in Latin America, but its main focus will be on selling more drinks in the United States, Chief Executive Larry Young told Reuters.
 
Unfortunately, that might not be what Wall Street wants to hear.
 
Dr Pepper’s exposure to the sluggish U.S. soft drinks business could hurt growth.
 
 ”The firm has a mixed stable of brands, lacks the scale and product portfolio breadth enjoyed by larger rivals Coke and Pepsi, and relies almost exclusively on the mature and highly competitive U.S. market,” Morningstar analyst Mitchell Corwin said.
 
Still, Young says the company’s brands will take care of themselves.
 
“We have great brands, great people and are focused on delivering great results,” he said. “We’ll let the market take care of the price.”

(Reuters photo)

Check out a little retail sunshine.
 
The weather finally got a little better in April, which helped retailer’s sales even as the economy stayed week, according to Planalytics.
 
“While April 2008, on a national level, may have been an ‘average’ month in terms of temperature — the weather helped unleash pent up demand, improving sales in the Northeast, Midwest and the Ohio Valley,” the consulting firm said.
 
The company, which provides weather information for businesses, said home centers, restaurants and softline retailers all showed positive year-on-year gains. 
 
It called out Bon-Ton, Dress Barn, Family Dollar and Lowe’s as having the strongest sales gains.
 
“While the economy remains sluggish, the weather has certainly done its part this month to improve business’ fortunes,” said Scott Bernhardt, Planalytics Chief Operating Officer.
 
Also in the basket:
 
Dr Pepper Snapple to focus on brands, U.S.
 
Unilever looks for Bertolli sale deal: sources 
 

(Photo: Reuters)

Check out the Sears Holdings shareholder meeting.
 
Chairman Eddie Lampert meets the shareholders today, with a stock that is down more than 40 percent in the past year.
 
Profits for the retailer, which operates Sears and Kmart stores, continues to fall, as do same-store sales. Weakness in appliances and apparel have hurt Sears as it and other department store operators have been hammered by the slumping U.S. economy.
 
Some analysts have been calling on Sears to close underperforming stores and build new ones in areas where people are shopping.
 
Last week, Home Depot announced plans to close 15 stores and not open 50 more stores in its pipeline. Analyst Gary Balter of Credit Suisse applauded the move.
 
But he also noted that closing stores has significant costs — about $12.4 million each on average — and that most of the Sears and Kmart stores probably have negative value.

“We will be at the Sears annual meeting this morning where we expect Mr. Lampert to comment on this topic,” Balter said.

Also in the basket:
 
Wal-Mart offers more low-priced drugs
 
The pressure is on: retail anxiety builds as economy weakens (WWD)
 
Rice prices peaked, could fall to $600-Ebro Puleva

(Reuters photo from 2004, when the Kmart acqusition of Sears was announced)

Check out soft-drink makers offering a smaller gulp.
 
Beverage Digest reported last week and the Wall Street Journal reported today that Coke and Pepsi bottlers are testing new bottle sizes in convenience stores to try to boost soda sales. (Both links need subscription to see the full story)
 
Both bottling systems have tests of 16-ounce and 12-ounce bottles, being sold alongside the familiar 20-ounce bottle.
 
One reason for the test is to get the price of a bottle back below $1.00. “The price points have gotten too high,” one Pepsi bottler told Beverage Digest.
 
Some consumers also think a 20-ounce bottle is too large, Beverage Digest said.
 
A Coke spokesman told the Wall Street Journal that the the test is part of a broader plan to increase soda sales by improving packaging.
 
Package improvements have become all the rage in the consumer products industry, as a combination of economic and environmental concerns have caused companies to rethink how they package their products.
 
Kraft Foods, for example, has revamped some of the packaging for products, including mayonnaise, making the design more attractive and also using less material, which makes the package lighter and less expensive to ship.
 
But back to soft drinks. If you are still really thirsty, take heart. Coke bottlers are also testing a 24-ounce bottle in some markets, according to Beverage Digest.
 
Also in the basket:
 
Linens ‘n Things files for bankruptcy
 
Walgreen April sales hit by early Easter
 
Big retailers scaling back expansion plans and shutting stores (N.Y. Times)