target 2 day sale

Nov. 20 (Bloomberg) -- U.S. retailers are poised for a sales slowdown that may last through the holidays and into 2008.

Target Corp., the second-biggest U.S. discounter may post its smallest profit gain since 2005 today, and booksellers Barnes & Noble Inc. and Borders Group Inc. might record losses, analysts said. Home improvement chain Lowe's Cos. yesterday cut its earnings forecast for the second time in two months, and a survey of consumers showed the biggest portion of Americans in eight years plan to spend less money on holiday items.

Rising gasoline prices and the worst housing recession in 16 years have forced shoppers to make fewer trips to stores. Retailers, which count on November and December for 20 percent of their revenue, are making holiday price cuts earlier and more aggressively than last year.

``All these factors continue to pressure consumers, and it looks like that pressure isn't easing,'' said Steven Baumgarten, an analyst at PNC Wealth Management in Philadelphia, with $77 billion in assets including Wal-Mart Stores Inc. and Target.

Barnes & Noble, the world's largest bookseller, may post a third-quarter loss of 9 cents a share, according to the average estimate of five analysts surveyed by Bloomberg. Ann Arbor, Michigan-based Borders, the second-largest U.S. discount chain, may report a loss of 62 cents, the seventh straight quarter without a profit, after selling its U.K. and Ireland stores.

Minneapolis-based Target, the second-largest U.S. discount chain, may say it earned 62 cents a share, according to the average estimate of 23 analysts surveyed by Bloomberg. That would be the smallest profit-gain in four years.

Worst Since 2005

Clothing chain Limited Brands Inc., based in Columbus, Ohio, will probably show that it broke even in its third quarter, according to 19 analysts surveyed. That would be the company's worst earnings performance in two years.

Merchants including Kohl's Corp. said they're planning conservatively next year after third-quarter sales trailed predictions.

Lowe's, based in Mooresville, North Carolina, lowered its earnings forecast for the rest of the year ending Feb. 1 as it reported a 10 percent drop in third-quarter profit amid the worst U.S. housing recession since 1991.

Last week J.C. Penney Co., the third-largest U.S. department-store company, and Seattle-based Starbucks Inc., the world's largest coffee-shop chain, also reduced their profit outlooks, as did Atlanta's FedEx Corp., the second-largest U.S. package-shipping company.

``A weakening housing market continues to take a toll,'' Brian Nagel, an analyst with UBS Securities LLC, wrote in a note yesterday.

Cost of Heat

So are consumer debt levels, rising gasoline prices and higher home-heating costs, according to a survey released yesterday. The research, by the Consumer Federation of America and the Credit Union National Association, found that 35 percent of Americans polled said they intend to lower their holiday spending this year, the most in eight years and up from 32 percent last year.

``By a wide margin, the strongest negative influence is the high cost of gasoline and home heating,'' the credit union group's chief economist, Bill Hampel, said at a news conference.

Besides pressured consumers, the two largest booksellers are grappling with competition from Bentonville, Arkansas-based Wal-Mart and online retailer Amazon.com. New York-based Barnes & Noble and Borders have slashed prices by as much as 40 percent to drive sales.

Kohl's and J.C. Penney, two retailers catering to middle- income shoppers, cut their fourth-quarter forecasts last week.

`Conservative' Planning

``We're being very conservative in our sales planning for 2008,'' Wes McDonald, chief financial officer at Menomonee Falls, Wisconsin-based Kohl's, said on the company's third- quarter earnings call last week.

Shares of retailers have been plunging since the holiday sales season started Nov. 1. The Standard & Poor's 500 Retailing Index is down 12 percent this month, including a 27 percent drop by Plano, Texas-based J.C. Penney.

Wal-Mart, the world's biggest retailer, started its holiday discounts in October, and unveiled sale prices for the day after the U.S. Thanksgiving holiday. The chain offered a 42-inch liquid-crystal display television set for $798 and a Tonka dump truck for $10 in a circular on its Web site.

Sales in November and December represent 20 percent of retailers' annual revenue, according to the National Retail Federation, a Washington-based trade group. The NRF has predicted a 4 percent sales gain to $475.5 billion for the two months combined, the smallest increase since a 1.3 percent rise in 2002.

Falling Forecasts

Lowered expectations for the current quarter bode poorly for 2008, said Lauri Brunner, an analyst at Thrivent Investment Management in Minneapolis, with $70.6 billion in assets.

``If that happens in your best quarter in the year, it doesn't mean it's going to stop in the first quarter of next year,'' she said.

The International Council of Shopping Centers, a New York- based trade group, projects November and December comparable sales at about 70 chains it tracks to climb 2.5 percent, the least in three years.

``People are going to be tighter than normal with their spending,'' said Baumgarten of PNC Wealth Management. ``All indications are, it's going to be a tough period.''
FRANCISCO (Dow Jones) -- Among the companies whose shares are likely to see active trading during Tuesday's session are Freddie Mac, Whole Foods, and Target.

Freddie Mac (FRE) is expected to report earnings of 51 cents a share in the third quarter, according to analysts surveyed by Thomson Financial.

Whole Foods Market Inc. (WFMI) is forecast to post fourth-quarter earnings of 30 cents a share.

Target Corp. (TGT) is projected to report third-quarter earnings of 62 cents a share.

Saks Inc. (SKS) is expected to post third-quarter profit of 16 cents a share.

D.R. Horton Inc. (DHI) is expected to report fourth-quarter loss of 66 cents a share.

Hormel Foods Corp. (HRL) is projected to report fourth-quarter earnings of 65 cents a share.

Jamba Inc. (JMBA) is estimated to report third-quarter loss of 1 cent a share.

United Natural Foods Inc. (UNFI) is forecast to post first-quarter profit of 32 cents a share.

Borders Group Inc. (BGP) is estimated to report a loss of 61 cents a share in the third quarter.

Barnes & Noble Inc. (BKS) is forecast to post a loss of 8 cents a share in the third quarter.

Zale Corp. (ZLC) is estimated to report a loss of 60 cents a share in the first quarter.

Ross Stores Inc. (ROST) is projected to report third-quarter earnings of 36 cents a share.

Benihana Inc. (BNHN) is forecast to post second-quarter earnings of 16 cents a share.

Gymboree Corp. is expected to report earnings of 90 cents a share in the third quarter.

Brady Corp. (BRC) is estimated to post first-quarter earnings of 60 cents a share.

GameStop Corp. (GME) is forecast to post earnings of 23 cents a share in the third quarter.

Foot Locker Inc. (FL) is projected to report earnings of 24 cents a share in the third quarter.

Pacific Sunwear of California Inc. (PSUN) is expected to report earnings of 14 cents a share in the third quarter.

Eaton Vance Corp. (EV) is estimated to report fourth-quarter earnings of 49 cents a share.

New York & Co. Inc. (NWY) is forecast to report third-quarter earnings of 5 cents a share.

Limited Brands Inc. (LTD) is expected to post earnings of 1 cent a share in the third quarter.

Hot Topic Inc. (HOTT) is projected to post third-quarter earnings of 15 cents a share.

After Monday's closing bell, Hewlett-Packard Co. (HPQ) reported a fiscal fourth-quarter profit of $2.2 billion, or 81 cents a share, on revenue of $28.3 billion. During the same period a year ago, H-P earned $1.7 billion, or 60 cents a share, on $24.6 billion in sales. Excluding charges and one-time items, H-P would have earned $2.3 billion, or 86 cents a share. By that measure H-P beat the estimates of analysts surveyed by Thomson Financial, who forecast H-P to earn 82 cents a share on $27.4 billion in sales. For its fiscal first-quarter, H-P forecast a profit of 80 cents a share on revenue between $27.4 billion and $ 27.5 billion.

Watch list

American Equity Investment Life Holding Co. (AEL) said its board of directors approved a stock repurchase plan of up to 10 million shares over the next 12 months. The company will finance its share buyback program with its existing line of credit.

Capital One Financial Corp. (COF) said it agreed with Netspend Holdings Inc. to terminate their acquisition agreement, but they will expand the companies' strategic relationship. The financial holding company said it plans to acquire a minority stake in Netspend, a marketer of prepaid debit cards, as well as hold an option to purchase additional shares. Capital One said it does not expect its minority stake to have a material effect on 2008 per-share earnings.

Moody's affirmed ratings on Countrywide Financial Corp. (CFC) and kept its outlook on the company at negative. The rating agency held its Baa3 senior debt rating of Countrywide Financial and Countrywide Home Loans Inc., and its C- bank financial strength rating and Baa1 deposit rating of Countrywide Bank.

General Moly (GMO) said ArcelorMittal SA (MT) will buy 8.2 million shares in the company through a private deal as a part of their strategic alliance. ArcelorMittal will pay $8.50 a share for a total of about $70 million. After the equity investment, ArcelorMittal will own about 12.6% of General Moly's outstanding shares as of Nov. 19. The funds will be mostly used to develop the company's Mt. Hope molybdenum project, General Moly said.

Internap Network Services Corp.'s (INAP) Chief Financial Officer David Buckel is stepping down to pursue other interests in the private equity markets. The provider of Internet business products and services named Chief Accountant Tamara Augustyn principal accounting officer for the company.

KongZhong Corp.'s (KONG) third-quarter net income plummeted, hurt in part by higher operating expenses. The wireless services company's earnings fell to $ 544,000, or 2 cents per American depositary share, from $4.82 million, or 14 cents per ADS, a year earlier. KongZhong's revenue fell 32% to $17.1 million from $25.1 million a year ago, the company said. Analysts had predicted third- quarter earnings of 2 cents a share and revenue of $16.8 million. KongZhong expects fourth-quarter revenue of $17.5 million to $18.5 million.

Medical device maker Medtronic Inc. (MDT) said its fiscal second-quarter profit fell to $666 million, or 58 cents a share, from $681 million, or 59 cents a share, as sales of cardiac rhythm products slipped. The company reported sales of $3.12 billion, up from $3.08 billion a year ago, but sales of high-margin cardiac rhythm disease management products dropped 8% to $1.15 billion in the latest quarter. Analysts had estimated a profit of 56 cents a share on revenue of $3.1 billion.

Mercury Computer Systems Inc. (MRCY) said its board of directors named Mark Aslett as president and chief executive officer, effective immediately. The company's former chief executive officer, Jay Bertelli, will continue as executive chairman.

Nordstrom Inc.'s (JWN) fiscal third-quarter net income increased to $165.7 million, or 68 cents a share, from $135.7 million, or 52 cents a share, a year earlier. Total sales for the quarter increased 5.3% to $1.97 billion from $1.87 billion a year ago. Analysts had predicted third-quarter earnings of 52 cents a share and revenue of $1.96 billion.

Perry Ellis International Inc.'s (PERY) fiscal third-quarter net profit rose 3.6% to $8.53 million, or 55 cents a share, from $8.24 million, or 53 cents a share, in the prior-year period. The apparel company's revenue rose to $227.5 million in the quarter from $213.2 million a year ago, boosted by action sports and direct retail growth. Analysts had expected earnings of 54 cents a share on revenue of $228 million. The company also lowered its 2008 per-share earnings estimate to $1.78 to $1.82 from $1.87 to $1.91 due in part to the effects of weakened consumer confidence, higher energy costs and lower real-estate values on retail sales. Wall Street expects earnings to be $1.03 a share.

QLogic Corp. (QLGC) said Tony Massetti, chief financial officer, resigned, effective upon completion of the company's third-quarter earnings announcement in late January. The designer of switches, controllers, and host bus adapters said it will begin a search for Massetti's replacement immediately.

Senior managers at a unit of software maker SAP AG (SAP) that has embroiled the company in a legal dispute with rival Oracle Corp. (ORCL) have resigned, SAP said in a statement Monday. Oracle sued SAP in March, alleging that a Texas- based SAP subsidiary called TomorrowNow had stolen proprietary information from Oracle that Oracle uses to provide customer service.

Sears Holdings Corp. (SHLD) said it bought a 13.7% stake in Restoration Hardware Inc. (RSTO) and is considering a takeover bid for the company, according to a Securities and Exchange Commission filing. Sears said in the filing it paid $30.2 million cash to acquire 5.3 million shares of Restoration Hardware, or about $5.67 a share. In the filing, Sears said it plans to evaluate Restoration Hardware "and the desirability of proposing an acquisition" on a continuing basis.

Sirva Inc. (SIR) said the New York Stock Exchange intends to suspend trading of the company's common shares on Nov. 26. The NYSE will also begin procedures to delist the relocation services provider, which failed to meet the minimum $1 closing price requirement for 30 consecutive business days. Given Sirva's " abnormally low" share price, the NYSE didn't provide the company with an opportunity to regain compliance.

Target Corp. (TGT) maintained its outlook for November same-store sales, reiterating that reported same-store sales would see a low double-digit growth in the month. On an adjusted basis, same-store sales, or sales at stores open at least a year, are expected to rise 2% to 4%. In 2006, Target reported November same-store sales rose 5.9%.

Universal American Financial Corp. (UHCO) intends to change its corporate name to Universal American Corp. The company will begin trading on the NYSE under ticker symbol "UAM" on Dec. 3. Shares will cease trading on Nasdaq at the close of trading the preceding day.
LONDON (Thomson Financial) - UK smaller companies moved to just off their day's low at midday, bucking the buoyant mood of the blue-chips, with Freeplay Energy losing out as it seeks ways to raise cash.

At 11.45 am, the FTSE Small Cap index was 30.40 points down at 3,484.00, while the FTSE 100 index climbed 48.60 points higher to 6,169.40.

Freeplay Energy fell 2-1/2 pence to 6-1/2 pence as it said it will raise about 1.47 mln stg through a placement of 34.71 mln shares, but said it is still exploring other means of funding to reach the 3 mln usd mark, which is required to finance the company until April 2008.

The company also said it requires about 6 mln usd to fund its working capital needs for the next 12 months.

Meanwhile, its revenues in its Freeplay Energy division for the 10 months to October rose 16 pct to 5.7 mln usd, and it continues to trade in line with its expectations.

A double staff departure saw Erinaceous Group lose 3-3/4 pence to 12-3/4 pence, as its executive deputy chairman Neil Bellis and chief operating officer Lucy Cummings agreed to resign with immediate effect.

Fursa Alternative Strategies, which had asked for an EGM for the removal of these two executives, has now withdrawn its requisition.

Clinton Cards also stayed down, remaining 4 pence adrift at 58 pence, following a disappointing sales update which revealed a slow down in like-for-like sales.

Group like-for-like sales for the 16-weeks to Nov 18 rose 2.0 pct -- Clinton brand sales by 1.6 pct, and Birthdays brand grew 3.1 pct.

In reaction, Seymour Pierce reiterated its 'underperform' stance, continuing to see downside risk to forecasts.

However, there was better news for Maghreb Minerals, 1 penny higher on 6.125 pence, as the exploration company said new analysis has shown significantly higher zinc grades at Bou Jabeur in Tunisia.

NetServices moved up 0.625 a penny to 8-1/2 pence as it narrowed its full-year pretax loss on the sale of its wholesale consumer broadband business and tight management of both cost of sales and overheads.

For the year to Aug 31, the company saw its pretax loss come in at 0.6 mln stg compared with a loss of 3.0 mln stg a year ago, while it booked a net profit of 0.4 mln stg on the sale of its wholesale consumer business.

And numbers news also gave a boost to ILX, 3 pence better off on 66 pence, as the business education and training specialist posted a robust set of half-yearly results.

Charles Stanley repeated its 'buy' stance on the stock in response to the numbers. With the reorganisation of the Best Practice division starting to show benefits, the broker believes the Mount Lane troubles of FY07 should be of less importance.

Care UK remained up, 19-3/4 pence better off on 384-3/4 pence, as it was upgraded to 'buy' from 'hold' by Citigroup on valuation grounds, as the broker cut its target price to 460 pence from 575.

Citigroup cut its 2008 and 2009 EPS estimates by 7 pct and 15 pct respectively, reflecting the loss of the West Midlands Diagnostics contract, and also no further Wave 2 contract awards.

Elsewhere, Kryso Resources ticked up 0-3/4 a penny to 14-3/4 pence as the resource estimate at the Pakrut gold project in Tajikistan was been raised to 1.06 mln ounces at a cut-off grade of 0.5 grammes a tonne.

The new estimate is about 77 pct higher on the original resource statement given in March this year.

And positive mining news also provided a boost to Rambler Metals & Mining, staying 2 pence up on 63 pence, as the company said it has started its underground drill delineation program to test the Footwall Zone which will allow it to begin resource calculation during the second quarter of 2008.

An order win bolstered Motive Television 0.05 a penny to 1.025 pence, as its Brown Eyed Boy Ltd unit won a 1.2 mln stg order from BBC3 for its recently-piloted show 'How Not To Live Your Life'.

The AIM-listed TV investment vehicle said the order represents a commissioning of six thirty minute series of the sitcom to be delivered in 2008.

Meanwhile, workwear and laundry group Johnson Service edged up 2-1/4 pence to 88 pence, continuing yesterday's rally, amid talk of an approach from Nordic private equity group Industri Kapital.

And finally licence extension news was good for a gain of 0.005 a penny to 0.2 a penny in Angel Biotechnology.

The biopharmaceutical contract manufacturer revealed its manufacturer's authorisation for investigational medicinal products has been extended for a further two years following the regular two-yearly audit of the Pentlands site by the Medicines and Healthcare products Regulatory Agency.

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