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Retail Winners & Losers: Earnings Edition

Retails stocks are in focus today as companies report second-quarter earnings.

(Retail earnings article updated wit Stage Stores, Dollar Tree, Ross Stores and PetSmart earnings.)



) -- Retailers reported second-quarter earnings this morning. Here's how they stacked up.

Stage Stores

(SSI) - Get Stage Stores Inc. Report

is a standout amid a rather lackluster earnings season, as it reports 14% gain in earnings, ups its full-year outlook and announces a $25 million buyback program.

During the second-quarter, Stage Stores earned $10.3 million, or 27 cents a share, compared with $9.1 million, or 24 cents, in the year-ago period. Revenue inched up 1% to $345 million from $341.7 million.

Looking ahead the department store now expects a loss of 15 cents to 18 cents a share in its third quarter, better than the loss of 19 cents it reported last year. Stage Stores also forecasts comparable sales to come in flat to up 2% for both the third and fourth quarters.

Shares of Stage Stores are soaring 13% to $12.09 in morning trading.



is spiking 7.6% to $32.44 a day after it reported a 24% uptick in second-quarter profit and raised its full-year outlook.

"This is a great example of success that companies can have when they cut back on capital expenditures, focus on core operations and allocate capital in a thoughtful manner, Janney Capital Market analyst David Strasser, wrote in a note.

PetSmart earned $48.4 million, or 41 cents, in its second quarter, compared with $39 million, or 31 cents, in the year-ago period. Revenue climbed to $1.4 billion from $1.31 billion, while same-store sales grew 4.6%.

Analysts were calling for a profit of 36 cents a share on revenue of $1.39 billion.

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PetSmart now expects full-year earnings in the range of $1.91 to $1.99 per share, while analysts were looking for $1.90. For the third quarter it is forecasting earnings between 35 cents to 39 cents a share.

Shares of the pet retailer are gaining 7.4% to $32.67 in Thursday morning trading.

Dollar Tree

(DLTR) - Get Dollar Tree Inc. Report

is another winner, as its income surged 37% on strong sales of food, health and beauty products and party supplies.

The discounter also raised its full-year forecast, now expecting earnings in the range of $2.97 to $3.09 per share on $5.77 billion to $5.86 billion in revenue.

During the second quarter, Dollar Tree earned $78 million, or 61 cents per share, from $56.9 million, or 42 cents per share, a year earlier. Revenue spiked 13% to $1.38 billion from $1.22 billion.

Analysts expected a profit of 54 cents a share on revenue of $1.35 billion.

Shares of Dollar Tree are advancing 5.5% to $44.13 in morning trading.

Ross Stores

(ROST) - Get Ross Stores Inc. Report

told a similar story to most other retailers that have reported second-quarter earnings over the last several weeks. The off-pricer reported a higher quarterly profit, but said sales could fall flat or even decline during the all-important holiday season.

Ross Stores earned $129.3 million, or $1.07 a share in its second-quarter, a 25% jump from $103.4 million, or 82 cents, in the year-ago period. Sales rose 8% to $1.91 billion, while same-store sales increased 4%.

Looking ahead, Ross Stores now expects third-quarter earnings of 79 cents to 83 cents a share, compared with Wall Streets forecast of 80 cents. For the full year, the company is predicting profit between $4.18 to $4.27 a share, with analysts calling for $4.20.


(WSM) - Get Williams-Sonoma Inc. (DE) Report

easily topped second-quarter estimates, sending shares higher before the bell.

During the quarter, the high-end home goods chain earned $30.8 million, or 28 cents a share, compared with $399,000, or break-even, in the year-ago period.

Excluding items, Williams-Sonoma actually earned 31 cents a share, significantly higher than the 22 cents analysts predicted.

Sales grew 15% to $776 million, also beating forecasts of $757.9 million.

Shares of Williams-Sonoma are rising 2.4% to $29 in pre-market trading.

Children's Place

(PLCE) - Get Children's Place Inc. (The) Report

narrowed its second-quarter loss, but issued a disappointing third-quarter outlook.

The children's apparel retailer now expects to earn $1.38 to $1.43 a share, short of Wall Street's outlook of $1.45. It's also calling for same-store sales to be flat to positive low-single digit.

But it did up its full-year outlook, now predicting earnings between $3.08 and $3.18 a share, from prior range of $3.05 to $3.15 a share. Analysts are looking for a profit of $3.18 a share.

In the second quarter, Children's Place lost $8.3 million, or 30 cents a share, smaller than the loss of 34 cents analysts expected. Sales grew 9.4% to $345.3 million, while same-store sales rose 5%.

Children's Place also announced a $100 million share repurchase program.



reported a 40% surge in second-quarter profit, but cut the high-end of its third-quarter outlook due to a higher tax rate.

During the quarter, the office supply retailer earned $129.8 million, or 18 cents a share, compared with $92.4 million, or 13 cents, in the year prior.

Excluding one-time items, Staples earned 20 cents a share, in-line with Wall Street's outlook.

Sales remained about flat at $5.53 billion, but were shy of the $5.64 billion analysts estimates.

Staples foresees a higher tax rate of 37.5% from 34.5%, which should impact full-year earnings by about 6 cents a share. As a result, management now predicts 2010 earnings in the range of $1.25 to $1.29 a share, from prior outlook of $1.25 to $1.33. Analysts were looking for earnings of $1.35 a share.

For the third quarter, Staples is looking for a profit between 39 cents and 41 cents a share, also below forecasts of 43 cents.



cut its second-quarter loss by more than half, receiving a boost from margins at its Kmart chain.

During the quarter, the department store lost $39 million, or 35 cents a share, compared with a loss of $94 million, or 79 cents, last year. Excluding one-time adjustments, Sears actually lost 19 cents, one cent more than consensus estimates.

Sears revenue fell slightly to $10.46 billion from $10.55 billion, also short of Wall Street's forecast of $10.62 billion. Same-store sales declined 2.8% at namesake stores and 1.4% at Kmart. This is the first comparable sales decline at Kmart in three quarters, as the discounter was hurt by food sales.

But Kmart's gross margins increased 230 basis points from last year and overall gross margin rose to 27% from 26.5%.

Denim retailer


(BKE) - Get Buckle Inc. (The) Report

reported lower-than-expected second-quarter earnings, as sales slowed and higher costs weighed on its bottom line.

During the quarter, the teen retailer earned $20.7 million, or 44 cents a share, a 17% drop from $25 million, or 54 cents, in the year-ago period.

Buckle's revenue slipped 2% to $188.6 million, while same-store sales tumbled 7.3%.

Analysts were called for a profit of 49 cents on revenue of $192.4 million.

Buckle said costs during the quarter rose to $113.3 million from $110.6 million a year ago.

Shares of Buckle are sinking 4.4% to $24.75 before the bell.


(GME) - Get GameStop Corporation Report

reported second-quarter earnings that fell short of estimates, and issued disappointing forecast for the second-half of the year, sending share tumbling before the bell.

During the quarter, the video game retailer earned $40.3 million, or 26 cents a share, a 4% increase from $38.7 million, or 26 cents, last year. Still this was as penny shy of Wall Street's outlook.

Revenue increased 3% to $1.8 billion, in-line with expectations.

Looking ahead, GameStop is looking for third-quarter profit in the range of 35 cents to 38 cents a share, and full-year earnings between $2.58 and $2.68 a share. Analysts are predicting a profit of 39 cents and full-year earnings of $2.63 a share.

GameStop's stock is plunging 6.1% to $19.50 in pre-market trading.

-- Reported by Jeanine Poggi in New York.

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