Coca-Cola revenue misses Street view as Europe drags
Coca-Cola yesterday reported fourth-quarter revenue slightly below analysts’ estimates, hurt by a weaker-than-expected performance in Europe. The world’s largest soft drink maker, said revenue rose four per cent to $11.46bn (£7.32bn). Worldwide sales volume climbed three per cent, but volume in Europe fell five per cent. JP Morgan analyst John Faucher, for example, was expecting volume to rise 3.5 per cent, with a decline of just one per cent in Europe. Coca-Cola does not give financial forecasts but said that for the full year 2013 it expects $100m in increased commodity costs related to sweeteners, juices, metals and plastic. Coke said fourth-quarter net income was $1.87bn, or 41 cents per share, up from $1.66bn, or 36 cents per share, a year earlier. Excluding one-time items, earnings were 45 cents per share.
Fossil expects Asia and Tory Burch deal to drive growth
Accessory maker and retailer Fossil posted strong revenue growth on its success with marketing “affordable luxury” and signed a deal with fashion brand Tory Burch that could replicate its success selling Michael Kors watches. Asia-Pacific wholesale sales grew 19 per cent to $102.8m in the fourth quarter ended 29 December The region contributed about 11 per cent of total sales in the period. Fourth-quarter earnings rose to $151.1m, or $2.51 per share, from $117.9m, or $1.87 per share, a year earlier.
On an adjusted basis, Fossil earned $2.27 per share, beating analysts expectations of $2.26 per share. Revenue rose 14 per cent to $947.7m driven primarily by a double-digit growth in its global watch portfolio and came in above analysts’ view of $930.4m. The company also forecast full-year earnings of between $5.85 and $6.15 per share.
Avon’s business improves but losses keep growing
Avon Products’ business showed signs of life in the last three months of 2012 as the struggling beauty company sold more items, attracted more sales representatives and cut marketing and personnel costs. Avon yesterday said it sold two per cent more items in the quarter that ended
31 December, and that the number of sales representatives increased one per cent, halting at least for a now a shrinking of the direct seller’s salesforce. Chief executive Sheri McCoy, who took the reins last April, called those numbers “early signs of stabilisation” and said she expects progress to continue this year. Avon reported a net quarterly loss of $162.2m, or 37 cents per share, compared with a loss of $400,000, or nil per share a year ago, and said revenue fell one per cent to $3bn a year earlier.
Michael Kors hits record high as holiday sales grow
Fashion company Michael Kors Holdings raised its full-year forecast after strong sales of its luxury items such as handbags and watches over the holiday period helped to win market share from rival Coach, sending its shares to a record high. Michael Kors raised $944m in its initial public offering just over a year ago, one of the biggest ever listings by a US fashion company. The company now has a market capitalisation of $12.6bn. Michael Kors said it expected a low- to mid-20s percentage increase in same-store sales in the current quarter. Net income rose fourfold to $130.0m, or 64 cents per share, from $32.0m, or 20 cents per share, a year earlier. Analysts had expected 41 cents per share. Revenue jumped 70 per cent to $636.8m in the quarter ended December, compared with $540.3m forecast by analysts.