For the month of April, the Michigan Consumer Sentiment Index rose to 65.4 from a revised 63.8 reading in March and ahead of the 64.5 analyst consensus from Bloomberg. During March 2011, U.S. retail sales grew 0.4% on a month-over-month basis and 7% on a year-over-year basis. Specifically, spending in clothing stores was up 0.6%, building and gardening materials purchases increased by 2.2% and furniture sales jumped 3.6%. In a recent report, IHS Global Insight estimated that real gross domestic product will expand between 3.5% and 4.0% in the second half of 2011 as an improving job market boosts consumer spending. During March, the U.S. economy added 216,000 jobs, and the unemployment rate declined to 8.8% from 8.6% in February. We have selected 10 consumer goods stocks that could rise as much as 62% over the next year, based on consensus analyst estimates from Bloomberg. These companies are in categories including apparel, accessories, baby products and furnishings.
10. USANA Health Sciences ( USNA) develops and manufactures high quality, science-based nutritional and personal care products. Its customer base consists of two types of customers: Associates and Preferred Customers. Its range of skin and personal care products include USANA Nutritionals and Sense-beautiful science (Sense). Net sales for first quarter of 2011 increased 20.6% to $143.6 million, vs. $119.1 million a year before. Higher product sales and increased number of active Associates, driven by the company's Baby Care subsidiary in China, were responsible for the growth. Net earnings increased by 17.7% to $11.4 million, or 70 cents a share, vs. 62 cents a share in the first quarter of the previous year. For all of 2011, the company expects $530 million to $550 million of revenue and EPS of $2.85 to $2.95. The company is expanding its reach by implementing certain strategies in the Baby Care business in Hong Kong and China in the coming fiscal year. Moreover, the company expects momentous growth in China by the year-end. According to Bloomberg, EPS for 2011 is estimated at $3.35, with $588 million expected net sales. Of the seven analysts covering the stock, 57% rate it a buy, while 29% rate it a hold. On average, analysts surveyed by Bloomberg expect the stock to reach $39.80 in the next year, implying upside of 4.8%.
9. Kenneth Cole Production ( KCP) designs, sources and markets a range of fashion footwear, handbags and apparel. The company markets, distributes and licenses a range of products including footwear, apparel and accessories for men, women and children. It has licensed agreements under its Kenneth Cole New York, Kenneth Cole Reaction, Unlisted and Le Tigre names as well as the footwear brand Gentle Souls. The company operates through three segments: wholesale, consumer direct and licensing. For full year 2010, Kenneth Cole recorded revenue of $457.3 million, an increase of 11.4% driven by all three business segments. Earnings for the year stood at $2.1 million, or 11 cents a diluted share, compared with a loss of $63.2 million, or $3.52, a diluted share in 2009. The company's performance is mainly led by the efficient operating infrastructure that it has put in place in 2010. Also, its steps of clearance activity associated with the store closings of eight full-priced stores have benefited the company's financial performance. For the first half of 2011, Kenneth Cole plans to close down two more stores. For 2011, the company expects its adjusted diluted earnings a share to range from $1.82 to $1.85, with revenue of approximately $790 million. Of the four analysts covering the stock, 50% rate it a buy, while 25% rate it a hold. Analysts polled by Bloomberg expect the stock to gain an average of 19.5% to $16 over the next year.
8. Lacrosse Footwear ( BOOT ) is a developer and marketer of footwear for work and outdoor users. The company's Danner and LaCrosse brands are distributed domestically through a nationwide network of retailers and distributors, and internationally through its Danish subsidiary, LaCrosse Europe ApS, and through distributors and retailers in Asia, Europe, and Canada. For the full year 2010, net sales were $150.5 million, up 8% from $139.6 million in the previous year. Net income was $6.9 million, or $1.04 per diluted share, growing 25% from $5.5 million, or $0.86 a diluted share, in 2009. Net sales increased from the wholesale, direct and international channels by 14%. Encouraged by the wholesale backlog in the recent quarter, the company plans to continue to introduce new and innovative products in the near future. Of the four analysts covering the stock, 75% rate it a buy. The average price target of analysts surveyed by Bloomberg is expected $20, up 20.5% from current levels.
7. Summer Infant ( SUMR ) is a designer, marketer and distributor of juvenile health, safety and wellness products under the Summer Infant brand to retailers in North America and the U.K. The company also has several licensing arrangements to its sell products under different brands. The company announced its fourth-quarter and full-year 2010 results on March 9. Net income for the fourth quarter was reported at $600,000, or 10 cents per share, beating the Reuters consensus estimate of 9 cents per share. Quarterly revenue was up 30% on a year-over-year basis. Net income for full-year 2010 totaled $6.6 million or 40 cents per share, compared to $5.7 million, or 36 cents per share, in 2009. On March 24, Summer Infant announced that it completed the acquisition of Born-Free Holding, aligning with its aim to gain traction in its core target market -- prenatal moms -- as well as add additional relevancy to this key group. On average, analysts expect Summer Infant to post EPS of 12 cents next quarter. According to Bloomberg estimates, the company is likely to generate $264 million in revenue in fiscal 2011 and have EPS of 6 cents. Of the nine analysts covering the stock, 89% rate it a buy, while the others rate it a hold. There are no sell ratings on the stock. On average, analysts polled by Bloomberg expect the stock to reach $10.80 in the next 12 months, 20.5% higher than current levels.
6. Inventure Foods ( SNAK) is a marketer and manufacturer of healthy, natural and indulgent specialty snack food brands. The company operates through three segments: manufactured snack products, berry products and distributed products. With manufacturing facilities in Arizona, Indiana, and Washington, it is also a marketer of food brands under a variety of owned or licensed brand names including T.G.I. Friday's, Poore Brothers, Bob's Texas Style, BURGER KING, and JAMBA. Inventure Foods announced its first-quarter results on April 27. The company reported earnings per share of 8 cents and revenue of $36.6 million. For the first quarter, the healthy and natural portfolio represented almost 53% of total revenue as compared to 27% in the previous year. The company's Rader business is expanding through new products and new distribution centers in North America. Also, it expects to create greater revenue with Jamba in the next fiscal year. The company is focusing on "better for you" products, which would gain a larger share in total revenue. The stock has buy ratings from all four analysts who cover it. On average, analysts surveyed by Bloomberg expect shares to rise to $5.20 over the next year. That's 22% greater than current levels.
5. Perry Ellis International ( PERY ) is a leading designer, distributor and licenser of a broad line of apparel and accessories for men and women. The offerings are available at all chain stores, major retailers and specialty stores under popular brands such as Jantzen, John Henry, Cubavera, Centro, Nike brand swimwear and accessories. Early 2011, Perry Ellis acquired Rafaella Apparel Group for $80 million. Total revenue for the year ending Jan. 29, 2011 was $790 million, up 5% from $754.2 million a year before. The company reported an 83% increase in net income to $24.1 million or $1.70 per fully diluted share, compared with net income of $13.2 million, or $1.01 per fully diluted share, for fiscal 2010. With a strong focus on working capital management, the company reported $18.5 million in cash and cash equivalents at year-end, and accounts receivable declined 7% to $129.5 million at year-end, compared with $139.9 million in fiscal 2010. For the upcoming full year, the company anticipates EPS of between $2.30 and $2.40, vs. $1.70 recorded in the previous year. Furthermore, revenue is expected to reach $1 billion during fiscal 2012. Of the 11 analysts covering the stock, 82% rate it a buy, while 9% rate it a hold. Analysts polled by Bloomberg have an average price target of $34.50 for the next 12 months, 23.6% higher than current levels.
4. Calavo Growers ( CVGW) is a global leader in procuring and marketing avocados and other perishable commodities and an expanding provider of other diversified fresh produce and prepared foods. It offers a range of fresh and processed food products to food distributors, produce wholesalers, supermarkets and restaurants worldwide. For its first quarter, the company reported net income of $2.3 million, or 16 cents per diluted share, unchanged from its fiscal 2010 first quarter. Net revenue totaled $91.7 million, up 36% from the same period last year. Notably, the company's selling, general and administrative expenses as percentage of revenue narrowed by 220 basis points to 5.5% as compared to 7.7% in the year ago quarter. For 2011, the company expects to post growth in revenue and profit mainly led by its four drivers: fresh avocados, diversified products, CalavoFoods and opportunistic acquisitions. Analysts polled by Bloomberg expect the company to report revenue of $415 million and net profit of $20 million for fiscal 2011. Of the four analysts covering the stock, half rate it a buy and half rate it a hold. Analysts polled by Bloomberg expect the stock to rise to $29 in the next 12 months, up 38.1% from current levels.
3. Hooker ( HOFT ) designs, imports, manufacture and markets household furniture products principally in North America. The major product categories include dining, bedroom and bath furniture under the Hooker Furniture brand, and youth furniture sold under the Opus Designs by Hooker brand. The company's principal customers are retailers of residential home furnishings dispersed throughout North America. On April 12, Hooker Furniture reported financial results for its fourth quarter and full year ended Jan. 30, 2011 . Net sales for the fourth quarter were up $2.3 million to $55.0 million, compared to net sales of $52.7 million recorded in the year-ago quarter. Net sales for full year 2011, increased 5.9% to $215.4 million as compared to $203.3 million for fiscal 2010 as unit volume grew across all divisions. Net income for fiscal 2011 increased 7.7% to $3.2 million or 30 cents per share, compared to $3.0 million or 28 cents per share in 2010. The company recently launched three major collections at the April High Point Market that were well received, benefiting both wood and upholstery lines. The company has taken measures to reduce freight costs that affected operating expenses in the past. Of the three analysts covering the stock, 67% recommend a buy on it and the remainder rate it a hold. Analysts polled by Bloomberg expect the stock to rise to $18.50 in the next 12 months, up about 50% from current levels.
2. Lakeland Industries ( LAKE ), manufactures and sells a line of protective garments and accessories for use in the chemical, petrochemical, health care and other industries. The company sells its products to 1,200 safety and mill distributors and to end-user industrial customers as well as federal, state and local government agencies. On April 7, LAKE announced financial results for its fourth quarter and full year 2011 ended Jan. 31, 2011. Net sales for full-year 2010 increased to $101.2 million from $94.1 million in the previous year due to an $8.3 million increase in foreign sales. Gross profit increased to $29.8 million from $25.4 million for the year ended January 2010. The management anticipates several large orders from Brazil which will be recognized as revenue in the next fiscal year. All analysts rating the stock have a buy rating on it. Analysts polled by Bloomberg have a consensus price target of $13.40 on it, which is 57.6% higher than the stock's current levels.
1. Kid Brands ( KID), is a designer, importer, marketer and distributor of branded infant and juvenile consumer products. KID's retails its products in North America to large, national retail accounts and independent vendors. Kid Brands reported financial results for the fourth quarter and year ended Dec. 31, 2010 on April 1, 2011. Net sales for fourth-quarter 2010 increased 11.3% to $75.3 million, compared with $67.6 million during the year-ago quarter. Gross profit and gross profit margins decreased on anticipated antidumping charges, higher labor and commodity costs and increased freight costs and allowances. Net sales for full-year 2010 were up 13.1% to $275.8 million, compared with $243.9 million in 2009. Net income increased to $34.7 million, or $1.59 per diluted share, from $11.7 million, or 54 cents per diluted share, in 2009. Heading into 2011, the company estimates mid-single-digit net sales growth as compared to 2010 levels. Meanwhile, net income per diluted share is seen relatively flat for the same period. During the second half of 2011, Kid Brands has planned several new product launches and some specific retail plans. Of the six analysts covering the stock, 67% rate it a buy while while 33% rate it a hold. The stock has no sell ratings. Analysts polled by Bloomberg expect the stock to gain an average of 62% to $11.70 in value from current levels. >>To see these stocks in action, visit the 10 Consumer Goods Stocks to Watch portfolio on Stockpickr.