By Ben Fox Rubin
Next week's earnings calendar will be dominated yet again by the
retail sector. But, with few major names reporting, the biggest
item expected will be the May jobs report on Friday.
Fairway, Cracker Barrel, J.M. Smucker Reporting
Fairway Group Holdings Corp. (FWM) has enjoyed a sunny reception
from the market since its initial public offering in April, with
its stock rising about 70%.
The New York-centric supermarket chain, which specializes in
fresh produce, kosher and organic foods, and locally produced
items, will report earnings Thursday for the first time since going
public. Analysts polled by Thomson Reuters expect the company to
post a loss, though William Blair recently wrote that it sees
Fairway as an "aggressive growth" company, with advantages over
conventional and specialty food retailers thanks to its broad
offerings and competitive prices.
Additional food-related companies reporting earnings next week
include restaurant chains Bob Evans Farms Inc. (BOBE) and Cracker
Barrel Old Country Store Inc. (CBRL), packaged food company J.M.
Smucker Co. (SJM), and wine and liquor maker Brown-Forman Corp.
(BFA, BFB).
More Retailers Quarterly Results
Next week will continue the trend over the past few weeks of
retailers controlling the earnings calendar, though there won't be
many major names among the group.
Dollar General Corp. (DG), which reports Tuesday, has seen its
profit grow steadily as it continues to add new stores and attracts
increasingly frugal shoppers by stocking better-known brands on it
shelves. But the company previously warned the volatile economy
could further pressure consumer spending and affect Dollar
General's input costs. Analysts expect a 13% rise in per-share
profit and 9% higher revenue in the latest quarter.
Other retailers reporting will include Dress Barn owner Ascena
Retail Group Inc. (ASNA), Francesca's Holdings Corp. (FRAN), Conn's
Inc. (CONN), Coldwater Creek Inc. (CWTR) and Mattress Firm Holding
Corp. (MFRM).
Handbag designer Vera Bradley Inc. (VRA) and apparel maker G-III
Apparel Group Ltd. (GIII) also will report.
Earnings Grab-Bag
Other companies reporting will include card-payment systems
maker VeriFone Systems Inc. (PAY), casino-games company SHFL
Entertainment Inc. (SHFL), home builder Hovnanian Enterprises Inc.
(HOV) and government-services contractor SAIC Inc. (SAI).
Fed's Next Move a Major Backdrop for Jobs Report
Investors likely will be looking at May's payrolls report for
what it implies about Federal Reserve policy, rather than what it
says about the economy overall.
With the U.S. recovery looking firmer, market participants are
focused on when the Fed will start to taper off its bond-buying
program. Fed officials want to see sustained improvement in the
labor markets before tapering begins, so all employment-related
data will be crucial to the timing of the central bank's next move.
Consequently, the employment report, always a market mover, has
greater potential to swing investor sentiment next Friday.
The unemployment rate is expected to remain at 7.5%.
Next week's calendar also contains May readings on business
activity, with the Institute for Supply Management's factory survey
coming Monday.
-Kathleen Madigan contributed to this article.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
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