Monday, June 8, 2009

After hours (MW, TXN)

AlphaNinja - Men's Wearhouse (MW) trading up 8% after beating estimates and raising earnings guidance. Total sales declined, but tuxedo rentals up almost 2%. At 15% of total company sales, they're having an impact on increasing gross margin (well in this case mitigating the decline).

A look at the impact that weaker sales-per-square foot have had on MW's bottom line:

From the press release:

---Clothing product sales, representing 77.4% of fiscal first quarter 2009 total net sales, decreased 7.6% due to decreases in the Company's comparable store sales primarily driven by a reduction in store traffic levels.

---Tuxedo rental sales, representing 15.4% of fiscal first quarter 2009 total net sales, increased 1.7%.

---Gross margin before occupancy costs, as a percentage of total net sales, decreased 196 basis points from 58.10% to 56.14%. Clothing product margins, as a percentage of related sales, decreased 327 basis points but were modestly offset by the impact of the higher margin tuxedo rental revenues that increased as a mix of total sales from 14.3% to 15.4%. Gross margins before occupancy costs for the second quarter are expected to be below the prior year as the Company continues a more aggressive posture in strengthening its value proposition for customers.


AlphaNinja - Texas Instruments (TXN) increases 2nd quarter earnings guidance, trading up 3.5% after hours. On the conference call (happening now), management is tempering expectations by pointing out that there's not an inventory build among their customers, but rather a slowing in inventory reductions compared to earlier in the quarter.

Substantial increase in EPS guidance:

-Revenue: $2.30 - $2.50 billion, compared with the prior range of $1.95 - $2.40 billion
-EPS: $0.14 - $0.22, compared with the prior range of $0.01 - $0.15.


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