Companies Making Headlines
Shares of athletic gear maker Lululemon Athletica (LULU) are under pressure after the management gave lower than expected revenue projections. The company is expecting first quarter revenue of between $333 million to $343 million, well below analyst expectations of revenue of $354 million. The company is also pulling yoga wear products from the shelves because the company was not happy with the “level of sheerness” in women’s yoga pants. The company said the move to pull the yoga wear from its shelves will have a “significant impact” to its bottom line and will have a shortage of women’s yoga wear in the first quarter.
Gurus for the most part have avoided Lululemon as it has historically traded at a premium to the market and the retail industry. SAC Capital Advisors’ Steven Cohen was the lone bull, but his purchase only had a portfolio impact of .03%. Jim Simons of Renaissance Technologies and Pioneer Investments were bears of LULU as they both reduced their small positions in the last quarter.
Shares of shoe retailer DSW (DSW) are significantly lower after the company reported fourth quarter EPS of $0.69 versus analyst estimates of $0.72. Revenues also fell short of analyst estimates, but shares started tanking after management stated that it didn’t know how 2013 will evolve.
Gurus have been mixed on the shoe retailer. The two bulls on the shoe retailer include:
- Meridian Funds (added to existing position)
- RS Investment Management Team (added to existing position)
ABC) are up more than 5% in early trading after the drug distributor signed a 10-year distribution agreement with with Walgreen (WAG) and Walgreen affiliate Alliance Boots. The agreement is meant to streamline distribution of pharmaceuticals to Walgreen’s stores and will have an immediate impact to Amerisource’s financials. The agreement will contribute an incremental $28 billion in revenue and an estimated 20 cents to Amerisource’s bottom line in 2014.
In the last quarter, Gurus sold out or reduced their position in the drug distributor. Gurus selling out or reducing their positions include: