Shop Talk

Retailers, consumers and prices

Check Out Line: April showers bring strong earnings

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coke1Check out the latest wave of strong quarterly earnings from the consumer world.

Under Armour, Coca-Cola Enterprises, Estee Lauder, Ford Motor, Energizer Holdings and Group 1 Automotive were among the consumer-focused companies reporting stronger-than-expected profits, supporting the view that a corner has been turned in the economy.

Athletic clothing and shoe maker Under Armour posted higher-than-expected quarterly profit fueled by strong apparel and online sales, and raised its earnings outlook for the full year. The largest bottler of Coke beverages, Coca-Cola Enterprises, with growth in European markets, did the same.

Estee Lauder, the maker of Clinique, M.A.C. and other cosmetics, saw its profit more than double as women treated themselves to small luxuries such as new skin creams. It also raised its full-year outlook.

Ford posted a big profit as North American sales picked up and raised its 2010 outlook to “solidly profitable.”  The U.S. automaker cited market share and pricing gains and also raised its second-quarter North American production plan.

Check Out Line: Coke’s actions speak louder than its words

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coke1Check out Coke’s about face on its relationships with one of its bottlers.

Coke plans to buy the North American operations of its largest bottler, Coca Cola Enterprises, in a substantially cashless deal that would let it cut costs and be more flexible in its distribution.

The announcement of the deal comes just as Coke rival PepsiCo is about to close its own $7.8 billion purchase of its largest bottlers, Pepsi Bottling Group and PepsiAmericas. It also reverses Coke’s previous stance, spelled out in repeated comments over the past several months, that its current relationship with its bottlers was just fine and it didn’t need to copy Pepsi.

Check Out Line: Staying home hits sales both ways

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Check out the impact of staying at home. 
 
kellogg-cerealDining in and watching movies from the comfort of your couch may help sales trends for food makers, but it hurts some other companies in the consumer space.

Kellogg on Thursday posted a higher quarterly profit as consumers ate more meals at home.
 
TRESemme, Nexxus and Alberto VO5 maker Alberto Culver felt the opposite impact in its results earlier this week, as sales missed analysts’ expectations.

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