The Zacks Analyst Blog Highlights: Staples, Amazon, Build-A-Bear Workshop, PetSmart and Bed Bath & Beyond

For Immediate Release

Chicago, IL – December 04, 2014 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Staples Inc. (SPLS-Free Report), Amazon (AMZN-Free Report), Build-A-Bear Workshop Inc. (BBW-Free Report), PetSmart, Inc. (PETM-Free Report) and Bed Bath & Beyond Inc. (BBBY-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday’s Analyst Blog:

Staples on Right Track, but Turnaround Tedious

Staples Inc. (SPLS-Free Report) has taken up various initiatives to battle weakness in the office supplies industry as well as rising competition especially from retailers like Amazon (AMZN-Free Report). Though the initiatives are in the right direction, it will take time for these to pay off as turnaround strategies are often time consuming. Hence, things might get a little difficult for Staples before they start to get better.

This was reflected in the company’s third-quarter fiscal 2014 results, which were marred by store closures and unfavorable foreign exchange fluctuations. Although earnings per share of 37 cents came in line with the Zacks Consensus Estimate, it fell 11.9% year over year. Revenues of $5,961.5 million were ahead of the Zacks Consensus Estimate of $5,936 million but fell 2.5% year over year. Both gross and operating margins were also down year over year.

Anticipating not much relief in the near term, management issued a cautious guidance for the coming quarter. The company expects lower sales for the fourth-quarter of fiscal 2014 compared with the prior-year quarter figure. Further, earnings per share are likely to be in the range of 27–32 cents as against 33 cents earned in the fourth quarter of fiscal 2013.

Staples’ turnaround strategy includes expansion of e-commerce and aggressive store rationalization, apart from initiating a cost reduction program. The company plans to close nearly 225 stores across North America by 2015.

In the third-quarter of 2014, the company shuttered 31 stores bringing the total store closure to 127 year-to-date. Going forward, the company now expects to close 170 stores in fiscal 2014 as against 140 projected earlier. Also, it initiated a cost reduction program to achieve pre-tax cost savings of about $500 million annually by fiscal 2015, with majority of savings expected to come from retail store closures, supply chain, labor optimization and customer service.

Till date, the company achieved $200 million in annualized cost reductions. Additionally, the company is focusing on the delivery business, which requires less capital and generates higher margins.

Staples is a Zacks Rank #3 (Hold) stock.

Other Stock to Consider

Other better ranked retail stock worth consideration include Build-A-Bear Workshop Inc. (BBW-Free Report), PetSmart, Inc. (PETM-Free Report) and Bed Bath & Beyond Inc. (BBBY-Free Report). Build-A-Bear and PetSmart sport a Zacks Rank #1 (Strong Buy) while Bed Bath & Beyond is a Zacks Rank #2 (Buy).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on SPLS - FREE
Get the full Report on AMZN - FREE
Get the full Report on BBW - FREE
Get the full Report on PETM - FREE
Get the full Report on BBBY - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Read the analyst report on SPLS

Read the analyst report on AMZN

Read the analyst report on BBW

Read the analyst report on PETM

Read the analyst report on BBBY


Zacks Investment Research