When RadioShack reported fourth-quarter results in March, the electronics retailer posted losses far worse than expected and said it would close up 1,100 stores in order to consolidate its store base while still maintaining a strong presence in all its markets. The problem for the company is that its lenders had the right to approve any closure involving more than 200 stores, and those lenders, which included Salus Capital Partners and GE Capital, wanted more than RadioShack was willing to give. Whether or not this denial forces the troubled retailer into bankruptcy remains to be seen, but it does make any turnaround at RadioShack nearly impossible.
When the company reports earnings before markets open on Tuesday, analysts are expecting an earnings per share (EPS) loss of $0.52 on revenues of $767.45 million. A year ago the company reported a first-quarter EPS loss of $0.35 on revenues of $849 million. In the fourth quarter, the company posted an EPS loss of $1.29 on revenues of $935.4 million.
There is little reason for optimism here. Shares are down nearly 60% in the past 12 months, and the stock’s 52-week range is $1.12 to $4.36. Shares closed at $1.47 on Friday. Nearly 32% of the company’s float was held short as of May 15, and that is down from about 34% at the end of April.
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Ulta Salon operates some 675 stores in 46 states, selling a variety of branded and private label beauty products. When the company reported results in early December, the shares absolutely tanked, dropping 20%. Ulta’s next report, in March, was somewhat better and shares rose above $100 again before beginning another slide.
The issue here is growth. The shares began trading publicly at $32 in October 2007 and reached a peak above $130 in early November last year. The company’s collapse in December was due to its weak guidance and, even though some analysts have stuck by the company, investors have a hard time believing that there is a strong comeback in Ulta’s future.
The company will report results after markets close on Tuesday. Analysts expect EPS of $0.74 on revenues of $699.15 million. Shares closed at $86.25 on Friday, in a 52-week range of $80.35 to $132.72, and the consensus price target on the stock is $108.50.
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Since posting an all-time high over $81 a share in June of last year, Lululemon has lost about half its value. The fiasco with the company’s see-through yoga pants seemed to be under control, and then the CEO announced she would step down. The company’s new chief executive took over in January, but the only thing that seems to generate interest in the stock is a takeover rumor.
Lululemon’s troubles are not so much see-through pants and management turmoil as much as they are rougher competition from the likes of Nike Inc. (NYSE: NKE), Under Armour Inc. (NYSE: UA) and Athleta, a recent entrant in the sports gear field from Gap Stores Inc. (NYSE: GPS). Lululemon’s same-store sales are sliding and EPS is flat at best.
For the company’s fiscal first-quarter results, analysts are estimating EPS of $0.32 on revenues of $381.21 million. A year ago the company posted EPS of $0.32 on revenues of $345.78 million. The stock set its annual low last Thursday, but rose 3.6% on Friday to close at $44.42 in a 52-week range of $42.28 to $82.50. Investors simply are not convinced the company can turn itself around.
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