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Finances
Investors Don't Cozy Up to Cosi Following Earnings Report
Deerfield, Illinois-based bakery chain, Cosi, Inc. (COSI) reported its latest quarterly earnings this past week. The company's stock dropped sharply after the report.
For the 2011 fourth quarter, Cosi reported sales of $26.2 million, an increase of 3.3% from the same period last year. The company reported a quarterly loss of $2.27 million or $0.04 per share. In the comparable period last year, the company lost $0.05 per share.
On an annual basis, Cosi reported a net loss of $6.5 million, or $0.13 per share, compared to losses of $3.1 million or $0.06 per share in the prior year. Total annual revenue for fiscal year 2011 fell to $102 million, a decrease of 6.9%.
"These results for 2011 reflect a continued improvement in operating margins combined with an improving trend in system-wide comparable sales," stated Carin Stutz, Cosi's President and Chief Executive Officer. Stutz continued that she was confident in the company's ability to unlock "the long term potential of the Cosi brand" through increased traffic and simplification of the guest experience.
Cosi's menu features sandwiches with very fresh ingredients on flatbread baked in wood-fired pizza ovens and freshly tossed salads. In addition, the chain offers a wide range of coffee-based drinks and desserts – including the ability to roast "S'mores" at your table.
Cosi, Inc. (COSI) closed the week at $1.08 per share.
In mid-March, Americans moved their clocks forward to adjust for daylight savings. By the end of the month, watchmaker Movado Group, Inc. (MOV) reported earnings that moved investors.
For the fourth quarter, Movado reported net sales of $122.4 million, up 21.2% from $101 million in the comparable period last year. The company reported net income for the quarter of $0.42 per share compared to a net loss of $1.25 in the fourth quarter last year.
On an annual basis, the watchmaker reported that net sales had increased 22.5% to $468.1 million in fiscal year 2011. The company's annual gross profit for the year was $256.3 million compared to $183 million last year.
"We are very pleased with our robust performance during the fourth quarter and throughout fiscal 2012," stated Rick Cote, Movado's President and Chief Operating Officer. He continued, "We believe these strong financial results demonstrate the effectiveness of our brand strategies, which have delivered consistently positive sales trends over the past eight quarters. We are particularly pleased with the significant improvement we have achieved in profitability, even in the face of the challenging environment and rising costs."
Movado Group, Inc. designs, sources and distributes watches under the brand names of Movado, ESQ by Movado, Coach, Juicy Couture, Lacoste and other watch brands worldwide and operates Movado company stores in the United States.
Shares of Movado Group, Inc. (MOV) ended the week at $24.55.
Teavana Holdings, Inc. (TEA) announced its fourth-quarter and annual financial results this past week. The Atlanta-based specialty tea retailer sells premium loose-leaf teas and related products.
On an annual basis, Teavana's net sales increased 35% to $168.1 million and net income increased 34% to $31.6 million. The company reported annual earnings of $17.8 million, an increase of 48% from the prior year. The company reported earnings per share of $0.46, up 48% from the prior year. During the year the company opened 54 new stores.
For the quarter, Teavana reported net sales of $68.4 million (an increase of 34% from the comparable period last year); income of $21.2 million, an increase of 28%; and net income of $12.5 million (or $0.32 per share). During the fourth quarter, the company opened four new retail stores.
Andrew Mack, Chairman and CEO, stated: "We closed fiscal 2011 with another solid quarter reflecting a continuation of the business momentum we had seen throughout the year. The strength of our product offering, our unique store experience and strong execution by our very talented team helped us deliver an 8.6% comparable store sales increase, including e-commerce and grow our net income by almost 36% in the fourth quarter." Mack stated Teavana's focus in 2012 would be to implement their U.S. store opening plan, drive comparable store sales and deliver strong earnings growth.
Teavana sells 100 varieties of premium loose-leaf teas through 200 company-owned stores and the company website.
Shares of Teavana Holdings, Inc. (TEA) finished the week at $19.72.
The Dow started the week at 13,081 and closed at 13,212. The NASDAQ started the week at 3,038 and finished at 3,092.The S&P 500 started the week at 1,397 and ended at 1,408.
For the 2011 fourth quarter, Cosi reported sales of $26.2 million, an increase of 3.3% from the same period last year. The company reported a quarterly loss of $2.27 million or $0.04 per share. In the comparable period last year, the company lost $0.05 per share.
On an annual basis, Cosi reported a net loss of $6.5 million, or $0.13 per share, compared to losses of $3.1 million or $0.06 per share in the prior year. Total annual revenue for fiscal year 2011 fell to $102 million, a decrease of 6.9%.
"These results for 2011 reflect a continued improvement in operating margins combined with an improving trend in system-wide comparable sales," stated Carin Stutz, Cosi's President and Chief Executive Officer. Stutz continued that she was confident in the company's ability to unlock "the long term potential of the Cosi brand" through increased traffic and simplification of the guest experience.
Cosi's menu features sandwiches with very fresh ingredients on flatbread baked in wood-fired pizza ovens and freshly tossed salads. In addition, the chain offers a wide range of coffee-based drinks and desserts – including the ability to roast "S'mores" at your table.
Cosi, Inc. (COSI) closed the week at $1.08 per share.
Interest in Watchmaker Movado Springs Forward on Latest Earnings
In mid-March, Americans moved their clocks forward to adjust for daylight savings. By the end of the month, watchmaker Movado Group, Inc. (MOV) reported earnings that moved investors.
For the fourth quarter, Movado reported net sales of $122.4 million, up 21.2% from $101 million in the comparable period last year. The company reported net income for the quarter of $0.42 per share compared to a net loss of $1.25 in the fourth quarter last year.
On an annual basis, the watchmaker reported that net sales had increased 22.5% to $468.1 million in fiscal year 2011. The company's annual gross profit for the year was $256.3 million compared to $183 million last year.
"We are very pleased with our robust performance during the fourth quarter and throughout fiscal 2012," stated Rick Cote, Movado's President and Chief Operating Officer. He continued, "We believe these strong financial results demonstrate the effectiveness of our brand strategies, which have delivered consistently positive sales trends over the past eight quarters. We are particularly pleased with the significant improvement we have achieved in profitability, even in the face of the challenging environment and rising costs."
Movado Group, Inc. designs, sources and distributes watches under the brand names of Movado, ESQ by Movado, Coach, Juicy Couture, Lacoste and other watch brands worldwide and operates Movado company stores in the United States.
Shares of Movado Group, Inc. (MOV) ended the week at $24.55.
Teavana Holdings Steeped in Earnings
Teavana Holdings, Inc. (TEA) announced its fourth-quarter and annual financial results this past week. The Atlanta-based specialty tea retailer sells premium loose-leaf teas and related products.
On an annual basis, Teavana's net sales increased 35% to $168.1 million and net income increased 34% to $31.6 million. The company reported annual earnings of $17.8 million, an increase of 48% from the prior year. The company reported earnings per share of $0.46, up 48% from the prior year. During the year the company opened 54 new stores.
For the quarter, Teavana reported net sales of $68.4 million (an increase of 34% from the comparable period last year); income of $21.2 million, an increase of 28%; and net income of $12.5 million (or $0.32 per share). During the fourth quarter, the company opened four new retail stores.
Andrew Mack, Chairman and CEO, stated: "We closed fiscal 2011 with another solid quarter reflecting a continuation of the business momentum we had seen throughout the year. The strength of our product offering, our unique store experience and strong execution by our very talented team helped us deliver an 8.6% comparable store sales increase, including e-commerce and grow our net income by almost 36% in the fourth quarter." Mack stated Teavana's focus in 2012 would be to implement their U.S. store opening plan, drive comparable store sales and deliver strong earnings growth.
Teavana sells 100 varieties of premium loose-leaf teas through 200 company-owned stores and the company website.
Shares of Teavana Holdings, Inc. (TEA) finished the week at $19.72.
The Dow started the week at 13,081 and closed at 13,212. The NASDAQ started the week at 3,038 and finished at 3,092.The S&P 500 started the week at 1,397 and ended at 1,408.
Treasury Yields Fall to Two-Week Low
In anticipation of greater concern over European debt, Treasuries rose, pushing yields on the 10-year bond to their two-week low. Seven-year Treasuries saw their highest demand in nearly 8 months.
Greece's debt woes continue to dominate the sovereign debt market. It is expected that Greece will once again have to restructure its debt.
Chris Ahrens, with UBS AG in Stamford, Connecticut, stated "The uncertainty surrounding the situation in Europe has moved back toward the forefront." London-based Matteo Regesta, a fixed-income strategist with BNP Paribas, believes that "while the situation in the euro region may have improved, it's far from over and this concern should continue to underpin demand for haven assets like Treasuries."
Near the end of last week, 10-year note yields fell to 2.16%, a decrease of 4 basis points. Yields on the 7-year notes fell to their lowest level since March 14, dropping to 1.54%.
The 10-year Treasury note yield finished the week at 2.21% while the 30-year Treasury note yield finished the week at 3.34%.
Greece's debt woes continue to dominate the sovereign debt market. It is expected that Greece will once again have to restructure its debt.
Chris Ahrens, with UBS AG in Stamford, Connecticut, stated "The uncertainty surrounding the situation in Europe has moved back toward the forefront." London-based Matteo Regesta, a fixed-income strategist with BNP Paribas, believes that "while the situation in the euro region may have improved, it's far from over and this concern should continue to underpin demand for haven assets like Treasuries."
Near the end of last week, 10-year note yields fell to 2.16%, a decrease of 4 basis points. Yields on the 7-year notes fell to their lowest level since March 14, dropping to 1.54%.
The 10-year Treasury note yield finished the week at 2.21% while the 30-year Treasury note yield finished the week at 3.34%.
The 30-Year Fixed Mortgage Rate Dips Back Below 4.00 Percent
In its latest Primary Mortgage Market Survey (PMMS), Freddie Mac reports that mortgage rates fell over the course of the previous week. Both the 30-year and 15-year average rates declined.
The average for the 30-year fixed rate mortgage (FRM) fell to 3.99%, down from 4.08% last week. One year ago, the 30-year FRM averaged 4.86%.
The average 15-year FRM also fell from the previous week. This week's average was 3.23%, down from 3.30% last week and down from 4.09% one year ago.
"Mortgage rates slid this week amid weaker housing economic indicators," stated Frank Nothaft, Freddie Mac's Vice President and Chief Economist. Nothaft noted that the S&P/Case Shiller 20-City Composite home price index fell in January to its lowest reading since December 2002. Nothaft also stated that, "new home sales declined 0.5% in February, below the market consensus of an increase, and pending existing home sales also declined for the month."
The money market rate finished this week at 0.50%. The 1-year CD finished at 0.70%.
The average for the 30-year fixed rate mortgage (FRM) fell to 3.99%, down from 4.08% last week. One year ago, the 30-year FRM averaged 4.86%.
The average 15-year FRM also fell from the previous week. This week's average was 3.23%, down from 3.30% last week and down from 4.09% one year ago.
"Mortgage rates slid this week amid weaker housing economic indicators," stated Frank Nothaft, Freddie Mac's Vice President and Chief Economist. Nothaft noted that the S&P/Case Shiller 20-City Composite home price index fell in January to its lowest reading since December 2002. Nothaft also stated that, "new home sales declined 0.5% in February, below the market consensus of an increase, and pending existing home sales also declined for the month."
The money market rate finished this week at 0.50%. The 1-year CD finished at 0.70%.
Published March 30, 2012
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