A humorous look at the companies that caught our eye, for better or worse, this week
Lululemon Athletica Inc. (STAR)
Men’s clothing products that Lululemon hasn’t invented yet: 1) Breathable 100-per-cent cotton thong underwear for long-haul truck drivers; 2) Sweat-wicking leopard print tights and tanks for construction workers; 3) Form-fitting Lycra hunting jackets with matching camouflage bottoms. Give it time: With Lululemon selling an ever-expanding selection of clothing for men – including athletic wear, polo shirts and blazers – the company posted sharply higher revenue and earnings for the fourth quarter, sending its stock to a record.
Cronos Group (DOG)
Marijuana may promote relaxation in some people, but owning marijuana producer Cronos is giving investors a case of anxiety. The shares, which had more than doubled after Altria’s $2.4-billion equity investment in December, extended their recent drop this week after Cronos swung to a fourth-quarter loss of $11.6-million, hit by soaring costs for research and development, “talent acquisition” and consulting fees. With analysts downgrading the stock, investors are switching to alcohol to calm their nerves.
Movado Group (STAR)
Everyone these days carries a smartphone with a built-in clock. But now there’s a new mobile time-telling gadget: a “wristwatch." You just strap it around your wrist and glance at it whenever you need to know what time it is. Movado Group is riding this new “watch” trend to big profits, as fourth-quarter sales surged 33.6 per cent and earnings topped expectations, thanks to the popularity of watches it makes under brand names including Movado, ESQ, Tommy Hilfiger and Hugo Boss. What will they think of next?
MAV Beauty Brands (DOG)
MAV Beauty Brands’ stock chart is looking downright ugly. After going public at $14 a share in July, the company – which sells shampoo, conditioner, body wash and other beauty products – has seen its shares plunge more than 40 per cent, including a hefty drop after the release of fourth-quarter results this week. Even as revenue rose 42 per cent, adjusted net income fell 22.5 per cent as gross margins were hurt by a “holiday promotion program” and other factors. No wonder the stock is looking limp and lifeless.
Bed Bath & Beyond Inc. (STAR)
Bed Bath & Beyond investors have watched a lot of money go down the drain in recent years. But the stock – which has tumbled more than 80 per cent since the start of 2015 – enjoyed a rare rally this week after activist investors Legion Partners, Macellum Advisors and Ancora Advisors disclosed a combined stake of about 5 per cent and said they want to sell off non-core assets and oust the retailer’s board and long-serving CEO. Sounds like these people are definitely in hot water.
John Heinzl