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tv   FOX Business After the Bell  FOX Business  February 13, 2013 4:00pm-5:00pm EST

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based, a good one to watch. ashley: also, amazon with a pop today. >> right, cbs, expanding licensing deal to include "everybody loves raymond," "star trek" lean the like. it's good news. liz: getting reaction on fourth quarter earnings. >> exciting. analysts are hot, some aren't, but we have seen it on the move, and today, it was down a little bit, but over six months, buffalo wild wings has done well. ashley: earnings after the bell, nicole from whole foods or as liz calls it, "whole paycheck," what it takes to buy the groceries there. >> that's true. the place ain't cheap. it apt cheap. the stock up half a percent, but i wanted to note that the dow is going back. the s&p set new highs. general electric helped the dow stay near the unchanged side.
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the financials, names like bank of america and jpmorgan hit highs and pulled back by the end of the day like the s&p 500 that broke tho with a new high today and now finishing in the red. liz: the closing bell, can't ignore general electric, a leader on the dow, up more than 3% selling off what it owned of nbc yon veer sal, and here we go, the closing bell rings right here on wall street. see how stocks are finishing up, ashley, and the dow came off the close here. not bad. who came back was the s&p 500 punching into positive territory by a fraction as the numbers settle. could change, but focus on the nasdaq, not a huge move of 10 points, yesterday, the nasdaq was lagging. today, moving higher and seeing a bigger move at the end of the session. ashley: mcdonald's weighing down the dow with the higher
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minimum wage. groceries a move to the downside. ten year yield rising four points closing above the 2% mark, hitting the highest level, by the way, in ten months. liz: financials were one of the worst performing sectors today, taking a breather after leaving five-year highs yesterday, but the financials showed signs of internal strength, 21 of the 81 financial stocks in the s&p touching 52-week highs like goldman sachs and blackrock. >> impressive. investors bullish on vacation stocks with four names. hitting new one-year high, marriot vacations, intercontinue tenial with fresh highs out performing alaska air and nor wee january cruise line. if you are brave enough to go cruising now. liz: when the bell rings, action begins. breaking news on corporate
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profits from big players. dow components, cisco, we have whole foods, amat applied materials, and metlife. ashley: going behind the numbers with two big ceos. the stock falling, buffalo wild wings ceo, sally smith, makes the case to investors on why the company 1 set to take off, and the ceo of choice hotels says forget china, europe, i say europe is where the growth is. liz: okay. we've heard that. we'll see. first, what drove the markets in today's data download. a mixed day, but more green than red in the last couple minutes here. nasdaq snapped a two-day losing streak, and s&p 500 eking out gains, but dow unable to maintain yesterday's momentum. falling into the red, industrials and materials were today's top performing sectors, and telecom and financials lagged. metals, platinum driving higher,
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widening the premium to gold to a 17-month high, renewed concerns that supplies will shrink boosting the metal 12.50 # an ops after a $21 jump yesterday for platinum. platinum used in the auto industry, not just for earrings anymore. retail sales growth slowing in january as higher taxes and gasoline prices did hurt spending. the commerce department reporting retail sales edged up a tenth of a percent following a half percent gain in december. ashley: i left the earrings at home. joe is in the pits of the cme and market panel today, david, partners, ceo and charlie smith, for pick group capital, and joe at the cme, before we get to the stocks for earnings, after a 6% runup in january, this market, as i said to liz earlier, seems
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to be just moving sideways waiting for the an fit pated correction. is that how you characterize it? >> i think that's how it's been trading, and, i mean, here's one thing that's been holding back the pull back, a retail community that's not been participating in this market at the level we would say they are overly bullish and ripe for a pull back. this is institutionally supported, and until we start seeing that retail flow come in, i'm going to continue to see this grind and bullish trend in tact. liz: applied materials numbers, stock is moving higher. >> moving higher, but, you know, it's a miss on earnings per share, six cents, and they were expecting 22 cents on what's net sales of 1.75 billion. revenue supposed to be 2.18 billion. trying to dig deeper into this. they generated orders of 2.11 billion, and net sales of 1.75 billion, and they are giving
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guidance for the second quarter, liz. they expect next sales up 15% to 25% in q2. liz: that's got to be it. looking at better, i guess, outlook here for a company that is very much in what has become a commodity industry, and that is solar technology equipment, not just semiconductor equipment making. joe? >> yeah, yeah, yeah, yeah, you're definitely seeing that transition. again, there's the appetite out there. we've seen it's been lagging up until this point. now we are seeing it's leading, and so now you see not just institutional money, but retail money coming in, and the numbers prove that. ashley: joe, cisco, what's the call? you say, look, they are trying to diversify away from the slower moving segments of the business and build momentum. you see that happening? >> yeah, you know what? the revenue stream traditionally from the routeing and switching, obviously, a slower pace revenue
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stream, getting into the i.t. platform servicing, the enterprise participants spending more, seeing the macro economic trends starting. the business right now has been performing well, and looking at the options marketplace, we're actually seeing there's potential of 5% move going into this number and into the end of expiration week, and we could see momentum going in through the springtime if, again, we see some solid numbers coming out from cisco. liz: okay. speaking of which, put up the stock, at least at the moment, to show the after market trading of what's happening. putting on my glasses here. cisco stock moving just markettedly higher here waiting to get the details, but shares up 1.3% after the bell, and as we bring in our market panel, david and charlie, cisco, of course, is a bellweather. 24 is --
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this is an important stock. we have the numbers, adam? >> net sales, revenue is 12.1 billion. earnings per share in line with what the street expected, 51 cents earnings a share. here's a quote in terms of the qiewch, "making solid progroceries depress, new markets grow and created." it's a miss on revenue, liz. liz: david, again, this is john chambers really swinging a guy -- big bat saying we're in i.t., but everything from the routers to the set top boxes business of india. there's so many things cisco is looking to get into at this point. can you be all things to all people? >> that's always a difficult business strategy to pull off, but, you know, with the size of the company, they have a lot of resources to be able to take that on. the one risk i see in cisco is not to ignore the fact that 25% of the revenue comes from
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government contracts and the united states and europe, and if we look at austerity measures at the two large economies, cisco can't go through that without having a bit of a hit to the revenue on that. ashley: charlie, a big part of cisco's operation, in fact, 20% of the revenue comes out of europe, and we know the problems that europe has had. how concerned are you about that for cisco going forward, or do you think europe is getting its act together? >> i don't think europe's getting its act together. we've actually seen a little bit better expectations about the enterprise business from cisco. obviously, the government business is weak. they sold off consumer oriented businesses so i wouldn't be so much concerned about a revenue miss at kiss koa trying to concentrate on the profitable business. look at the margins more than the slight revenue miss. liz: okay. is that what you do when earnings come out of the stock you own, look at the margins? >> well, i mean, we saw it with apple. the trend in gross margins was
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what people were concerned about. when your basic profitability begins to peak out and the growth rate peaks, that's really the best sort of indicator of a problem with the company is gross margin trends. liz: whole foods out right now. adam, how did they do? >> a beat on earnings per share, 78 cents, expected 64 cents. revenue at 3.86 billion, 3.9 billion. expected 3.1 billion. it seems as if they got a beat and a beat. liz: hefty -- he hefty? david, why is the stocks selling off on this? at least that is what it looks like to me. >> whole foods is a fantastic growth story especially since the credit crisis. it's really taken off, compared to the peers like a wal-mart or kroger, it's done well. one of the things now though in the next year, 91 of the stores were forced to temporary shut
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daven due to hurricane sandy. you can't do that without pressure to the top line revenue growth. liz: that make it a buying opportunity that that was a one-time blip? >> i honestly tend to think so. it is -- you can't ignore it the next 12 months or so, but as a whole, they have a really good story, a lot of growth personal, looking at going to e-commerce. i mean, whole foods is the whole package. ashley: charlie, whole foods, this expansion story. the ceo says, look, we would grow or hope to grow to a thousand u.s. stores. that's three times today's number. is that a good move, or is it a little bit of over saturation and could that be a problem? >> well, from what i see, there's a lot of room to grow. the competition of the kroger's and walmarts is a totally different market segment. the high end, fresh markets is the main competitor, but beyond that, there's a harris teeter
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regionally. they have a lot of room to run in the grocery business. liz: david, do you have a favorite region where you say this is it? it's cheap, an opportunity, and we have not seen the run up that it's so expensive? >> in terms of what? liz: sectors, stocks, you name it. show us the money. >> that's a great question right now. you know, one of our strategies we employ is a sector rotation strategy. right now, it's focused in energy, but that might have a 15-day shelf life before that's taken to the block. liz: okay. >> looking at the next month going on, it's hard to say. the stock market is highly priced. it's the story we know. the prices manipulated by government intervention, central banks around the world. there's a huge dispair between prices and pe ratios today. you know, we talk about the pull back or the chart shoots fast on prices, but we have to see. you know, maybe the fed prints
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more money, and we don't have to worry about it. liz: all right, okay, thank you so much. good to see you both. >> welcome. ashley: the president delivered the state of the union last night with a laundry list of ideas for spurring growth, but will any have a meaningful impact? that's a key question. talking to the man the white house turns for advise, robert sha peer row. liz: investors flocking out of buffalo wild wing stock as high chicken wing price ground the earnings. how do they plan to offset prices? can they convince investors they are ready to take off? we have the ceo, sally smith, on a first fox business interview. ♪
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look for citrucel today. more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex. liz: right now, this minute, the s&p futures closing. let's head back to the pits and
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find out what's happening at the cme with joe. joe? >> hey, liz. you know what? we grinded to a close, basically unchanged. i think we're going to continue to see this action going into next unless there's headlines coming out where retail gets in or out of the market. right now, i'd say on the pullbacks, you can start nibbling. you talked about it with whole foods. when it pulls back like this, it did it last quarter into the earnings. we can watch it again. i think there's some opportunity to nibble right here, but i also want to be very tempered about that. liz: nibbling on whole foods. thank you very much. ashley: it ain't cheap. cisco reported earnings a few minutes ago. to nicole. nicole, cisco missing revenue a little bit. how is it looking in after hours? >> well, it's looking like -- i'm not going to delve into the numbers because the estimates -- but it looks like the revenue earnings per share, not that
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bad, it's either in line or a beak. i'm not hearing a miss for this one. we'll get back to the numbers, but the big picture here is that john chambers is out. he's obviously talking in a very confident manner talking about the fact that they did what they said they were going to do. he's very comfortable with what they've seen with the performance thus far. we continue to watch the systems. the name, obviously, on the move on the dow jones industrial average, and it's something we're going to watch. obviously, one that can be a real mover tomorrow. according to barrens blog, saying revenue is in line and beat the street. they are our sister network. we'll continue to follow the numbers here for the dow component. obviously, and telecom and internet equipment and a big, heavy, heavy player in technology and will certainly drive tech stocks in the market one way or another. liz: you were right. i saw the same thing -- agreeing with you ongoing with barrens, a slight beat on the revenue number there. good call, good call.
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thank you. president obama outlining the second term agenda last night proposing new taxes and spending cuts to decrease the debt and help our mailing economy. ashley: will the policies have real impact? someone the white house turns to for economic advice, former under secretary of commerce and imf adviser, robert schapir organize. what did you think of the speech, robert, and do you feel the track the president is on is going to get us back on the economic front where we need to be? >> well, i think it's a step in the right direction. i was particularly glad that the president made a point about the sequester and short term deficit reduction. the fact is, yes, we need to reform entitlements. we need to build out the tax base, both over the long term, but in the short term, we saw what happened in the fourth quarter. we had strong gains in consumer
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spending, business investment, and residential construction, but it was overwhelmed, mainly, by a sharp drop in government spending. this is the same lesson any number of nations in europe have learned when they trieded to impose austerity while the economy was still not fully recovered and the result was they went back into a recession. liz: well, i think that's a great point. >> the president was right about that. liz: that's a great point. you have a lot of people on the republican side of the aisle making a lot of -- and not wrongly so, but noise about cutting government spending, and them, okay, be careful what you wish for. you may get it, and we got it, and we recessed about a tenth of a percent there, which, from your perspective, is that the worst thing in the world? i mean, we got a little taste of what it means to cut government spending. >> well, the fact is we don't have to push ourselves into recession in order to address the debt issue. we can do that, the debt issue
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is driven primarily by the reduction in the tax base and the rate of increase mainly in health care spending so that's what we ought to address, but we can address that with reforms that phase in as the economy gets stronger. we don't need to weaken the economy which just making deficits larger. ashley: how do you corrugate jobs, robert? what policies work? there's a lot of talk. you -- your advise is stawght -- sought by the white house. what would you tell them right now? >> the truth is i think we have a long term structural problem with job creation. that if we look at job creation both in the bush expansion and in this expansion, it's much, much less than we saw under either reagan or clinton, even when we adjust for differences in overall growth, and that tells you that what we probably need are policies that are
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targeted directly at job creation, not simply policies targeted at growth. for example, we could -- the main thing we need to do is we need to reduce the cost to business of creating new jobs. we could do that with a cut in the employer's side of the payroll tax. we could do that by strengthening the measures in obamacare which will slow health care inflation because health care costs are the largest and the fastest rising costs for business as well as for government. liz: well, a lot of them do say if you want to help me create jobs, don't make it so expensive for me to cover these workers as far as the health care is concerned, so help us square with that. >> well, the fact is, you know, the cost to employers of health care has been going up 67% a year for 30 years. liz: yeah. >> this is not a problem of obamacare. the problem is that we have not put in place any policies that can slow that.
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we need, you know, insurance companies have done a little with respect to co-pays, but we can do more. there's easy things we could do. we could expand prevention programs which save health care costs. we could accelerate the introduction of uniformed electronic medical records which saves costs. we could prom gsh promulgate, and, perhaps, give incenters for clinics and hospitals to follow best practices shown to produce the same results at less cost. there's a number of things to do. we can also take the lesson from the change in medicare which is to move reimbursements from services provided to results and apply that across the health care system. liz: okay.
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listen, thank you very much. we appreciate you coming on to talk about that, about reducing the cost of creating jobs, what a concept, robert, good to see you. >> my pleasure. ashley: makes sense. liz: sure does. ashley: 100 hotels opening in the fourth quarter alone, choice hotels expanding rapidly. you may be surprised exactly where they are focusing the expansion. coming up, talking to the ceo and president, steve joyce. liz: skyrocketing chicken wings prices? they clipped the growth, and does the company have a plan to offset rising costs? will wall street buy it? should you buy it? talking to the ceo, sally smith, on a first on fox interview. ♪
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ashley: 12. that is number of new properties that choice international opened in the fourth quarter alone. 128. >> this company set its sights not only expanding upscale brands but its presence of all places in europe. with us choice hotels ceo and president steve joyce. the stock is moving higher by 2/3 of a percent. this is gutsy hotel name. you've been here before. each time you come you continue to say we're growing. >> we are. we had a great year in 12. set all kinds of records for the company. everything is coming back in important way. mate important progress on a number of strategic fronts
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for us but we think 13 will be more of same, maybe even better. ashley: last night the president said he would like to raise the minimum wage to nine bucks an hour. what kind of impact does that have on a business like yours? >> market by market it can be an issue because it can cause an artificial barrier and can hurt the jobs environment. we would recommend that the administration focus on creating jobs. that will create demand for people and that will create a natural wage increase. look, the reality most markets minimum wage is irrelevant. you're paying people well above that. but it is a scenario we think the focus should be on job creation first and you will get demand for folks and that will raise wages for folks. liz: talk about expansions plans here in the u.s. and europe. you're building up all kinds of properties including a couple here in new york and these are high-end or upper scale hotels, correct? >> higher scale. liz: you only do that when you believe an economy is
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coming back. >> we do. barring something unforeseen that will set us going backwards from washington which we do not think we will we get, we think the hotel business will be in sight for a stronger run. not a lot of hotels coming on for 14 or 15. that should be a four or five-year good run. we'll start with the wind at your back. we hope for great things. we had a great december in manhattan. we talked about three ground breaks in 24 hours. a lot of fun. a lot of jobs for the city and we're very excited about that but we're also seeing that continue into 13. we have a new project breaking ground in washington. we have one at our global headquarters in rockville, maryland. we announced one in dallas and one in mean knicks and it goes on and on -- phoenix. we have 20 in the next 12 to 18 months. ashley: and europe. >> in europe. ashley: you're starting with a partnership in the u.k. looking to expand from there and why europe because as we know they are going through
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tough times? >> it is closer. no. the reason we like europe because it fits our business model. europe is largely unbrand and and wants to be branded. it is a lot of smaller hotels with irregular room types. a lot of big brand companies look at hotels their head explodes. we look at it and see opportunity. that's what we do really well. we have the only cloud based technology platform with conversion. europe is great market. huge market, big for the u.s. we view that as the next big opportunity for our company. liz: is assend your highest level hotel? >> highest rated hotel. liz: highest rated hotel. >> it is an interesting collection of hotels because they're all sort of unique but it creates an opportunity for a independent boutique operator to be part of a big system without being. liz: what is room like when i get in there? >> it can vary widely from the standpoint it can be a historic hotel or edgy boutique. we have both all over the
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place. what it will guaranty you a experience that will match the regional nature of the market you're in and you will meet some interesting people along the way. ashley: that is what i call a tease. steve joyce, president of choice hotels international. thanks for being here. very bullish, my goodness. liz: opening three hotels in 24 hours. never sleeps. ashley: apparently not. >> thank you. liz: chicken wing prices, we're flipping from hotel rooms to chicken wing prices. they are taking off and investors are punishing buffalo wild wings as a result. can they prove to investors they have the recipe right now and they can succeed despite these record prices? sally smith, the ceo of buffalo wild wings joining us in a first on fox business interview. ashley: retail sales were almost showing no growth at all but we have a top analyst who is optimistic about 2013 and has all the ways you can profit. stick around. [ kitt ] you know what's impressive?
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tell your doctor about any history of depression r other mental health problems, which could get worse while taking chantix. don't take chantix if you've had a serious allergic or skin reaction to it. if you develop these stop taking chantix and see your doctor right away as some can be life-threatening. if you have a history heart or blood vsel problems, tell yur doctor if you have new or worse symptoms. get medical help right away if you have symptoms of a heart tack. use caution when driving or operating machinery. common side effects include nausea, trouble sleeping and unual dreams. with chantix and with the support system it worked. it worked for me. [ male announcer ] ask your doctor if chantix is right for you. liz: investors flocked out of buffalo wild wings. the stock, of the company reported earnings that missed estimates as record high chicken wing costs continue to weigh on results. they did well revenues but costs were so high. can the company prove to investors it has the recipe it needs to weather these high prices. with us in a first on fox
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business interview, sally smith, buffalo wild wings president and ceo. sally, i would reich like to stress profits were up 22%. just these chicken wing prices continue to rise. let's get guidance right away for 2013 on whether you continue to see chicken wing prices jump as much as last year. >> thanks, liz, for having me. as we look at 2013, we said on our earnings kuhl that we can expect to achieve earnings growth of about 25% on a 52-like basis over this past year. we're already starting to see chicken wings mo moderate since super bowl. they are down close to 20 cents in just the last 7 or 8 days. so, 2012, certainly, some of the highest wing prices we've ever seen. i think what exacerbates it in 2011 wing prices were some of the lowest we had ever seen. we were very pleased with our revenue growth and we really did leverage on
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almost all other items, all other ins lines on the p&l statement from cost to sales. we were able to mitigate the impact of high chicken wing prices, not only high chicken wing prices but larger wings. a loss in yield by the high revenue growth. all in all --. liz: let's point that out. wings have gotten larger because chicken companies are feeding their chickens, making, seems a little complicated but they're making bigger chickens because of feed costs. that way you have a bigger wing and so a single wing, if you're doing a plate of ten, it is more of a weight there. so how do you then figure that out so that your botulinum per, sally, comes in, matching what analysts really hope it does? >> sure. as we look at 2013, i think we're right on track for what we said last year. that we could do in 2013. i think there's a couple of things on the menu.
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we're looking to reengineer the menu. we have a test out right now. for 30 years we sold wings by the each. six, 12, 18. we have a test in about 60, 65 of our markets testing it by a portion size. so because the wings have gotten larger, targeting a certain ounce per serving and being able to provide the guest with that rather than a count. liz: got it. >> if wings ever go smaller we want to make sure the guest is still getting that great value as well. liz: we now know so much about chicken wings. i want to know about super bowl because the super bowl numbers were not included in last quarter's numbers. how did you do? >> we had a great super bowl. we served over 8 1/2 million wings on super bowl sunday alone both in restaurant and take-out. on a year-over-year basis our sales on super bowl sunday were somewhere in the 7% increase in comp store sales over prior year. people are still coming to us for really great wings.
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liz: that probably is a part of the reason i think that deutsche bank and barclays have both raised their price targets. barclays has overweight rating for you. this is obviously a company where analysts love to believe it will do well. the disappointment of 3/4 of -- they get a little anxious. you have higher profits because you figure out the cost. chicken wing prices moderating 20 cents in the past couple days? >> about the past week or so, almost 20 cents. and you know as rapidly as they rose in 2012 they could fall just as rapidly as they did in 2011. certainly we try to focus on the things we can control. we have great fundamentals so operationally very strong. we have a strong menu. we're in the process of remodeling and unveiling a whole new restaurant design, getting great feedback on that. so as long as revenues stay strong and, that's our goal is to drive revenue. liz: okay.
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>> we can control other things on the income statement. liz: let's just put this into perspective. while the stock is down 10% year-over-year, over the past five years this stock is up 223%. sally, thanks very much for coming first on fox business. >> liz, thank you so much for the opportunity. liz: anytime. sally smith is the ceo of buffalo wild wings. ashley, who knew, coming down 20 cents. ashley: who knew that chicken wings are getting bigger. january retail sales, well, they're not getting bigger but coming in line with expectations. what can we expect moving forward. up next, jennifer davis of lazard capital. will have the spring stock pick. don't miss that. plus jack lew, the president's nominee to lead the treasury was in the hot seat today facing a grilling from the senate from everything from his role at citibank and yes, his investments in the cayman islands. we're live on capitol hill. stay with us. ♪ . she knows you like no one else.
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>> i'm adam shapiro with your fox business brief. whole foods is out with its first quarter results in after-hours trading. earnings per share for the company beat estimates by a penny coming in at 78 cents. revenue barely in line with the forecast of $3.85 billion. according to "the wall street journal" time warner is in talks with meredith corporation to devise, divest most of its magazine group. only keeping "the times", "sports illustrated" and fortune titles. "time" has been struggling in recent years and amid a industrywide slow down in print advertising. "harry potter" fans await the wizard's new look or book covers. scholastic unveiled a new look for "harry potter" and the sorcerer stone. the first of new paper back covers. this marks the 159th anniversary of the u.s. publication of the sorcerer's stone.
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liz: consumers did keep a tight lid on their wallets last month as retail sales inch higher by .1 of a pares. look toward the fact that the payroll tax cut expired and that cut people's ability to spend. continued sluggish job growth. are we setting up for a slow year in retail? ashley: hard to say. joining us jennifer davis, lazard capital retail sales analyst. thanks for being here. before we get into the picks the psyche of the consumer right now. yes, it was extremely minute sign of growth in january, basically the same. but i say that is pretty good considering as liz said the payroll tax hike, it seems to me that consumers are holding their ground. >> also january really doesn't matter. it is such a small volume month, january and february both. i think we'll get a better read once we get into the march and april time frame. but i mean, yeah there is concern around the consumer
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with an increase in payroll taxes but i'm cautiously optimistic. the american consumer manages to spend regardless of the environment so. liz: you have another analyst out there, citigroup's englander saying in a note that retail sales in january is the most important data point. you disagree obviously. >> yeah. liz: almost a throwaway sounds like for you. therefore what is next? what is important on the horizon? >> you know, i think once we get into march, april, sales, that's a little more important for us. liz: okay. >> meantime i'm looking at unemployment. looking at consumer sentiment, and seeing how the consumer is holding up. liz: if i'm an investor and say i will position right now during quiet time when some things are cheap, let's go with your first pick and coach which struggle recently. >> coach had a sell-off two weeks ago when they reported earnings so i think this is a great buying opportunity. this is a great brand, great management team. free cash flow over a billion dollars annually.
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they have a share repurchase program. the stock trading 12 times. his tore al average is 15.5 times. this is earnings investment year and earnings are depressed. think is a great opportunity for coach. ashley: look at gap, one of your picks. had a good year last year, no doubt about it but you think they will continue to grow this year? >> i do. that's kind of the concern i hear from investors on the gap, they had a great 2012 so can they report strong results on top of strong results in 2013? we believe they can. we believe the merchandise is that much better this year and they can continue to comp postively on top of positive comps and they have a lot of margin opportunity. liz: they have old navy as well which is a very popular option at least on the lower end. >> yes, yes. liz: does that add a lot markedly to the bottom line here? >> yeah. old navy and gap are the two
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biggest concepts within gap, inc., so both are very important. liz: going to tj maxx. >> yes. liz: they continue to improve the way they do business. you walk into one of the stores, it is no longer a free-for-all of people throwing things on the floor, things all over the place. you walk in now, there are choices of size and good quality designers. >> yes. and they have done a much better job merchandising the store, kind of what you're alluding to with four-way racks instead of long jet rails and you have to dig to find things. they reduced inventories in the store and made it easy for the customer to shop. liz: four-way racks, ash. ashley: very good description. exactly what it is like. limited brands, let's finish off the fourth pick. same-store sales growth of 9%, very impressive indeed but can they keep it up? >> probably not the 9%. january is a little bit of a anomaly. it is such a small volume month. 1% increase for limited in december would be about $20
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million. that $20 million in january is 2.5% increase. so, results are exacerbated in january but that said you know i think they can still post solid comps next year and i think they have a tremendous opportunity internationally. liz: jennifer, thank you for sharing your picks. we'll put them up on our facebook page so everybody can see of the good to see you. jennifer davis of lazard. ashley: all right. treasury secretary nominee jack lew making his case on capitol hill today answering tough questions about his time at citigroup, tax reform, the country's budget woes, the cayman islands, you name it. is his nomination, this is the question shaping up to be a long fight? we're live from capitol hill. ♪ all stations come over to miion a for a final go.
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ashley: treasury secretary nominee jack lew in the hot seat today as he answered some tough questions from the senate finance committee. liz: our rich edson is on
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capitol hill with the latest. how does it look, rich? >> some of the opposition he faced today is what republicans call out of hypocrisy given the campaign president obama waged against governor mitt romney last fall talking about his private equity experience, the money he had made and certainly some offshore accounts. when it was discovered jack lew had a venture capitalist investment structured and maintained in the cayman islands, it is something that republicans were sure to ask him about. >> do you believe the president was accurate in referring to the building which housed your investment as quote, the largest tax scam in the world? >> senator, i'm happy to answer questions about my own investments. i'm also happy to answer questions about tax policy regarding the sheltering of income from taxation. i reported all income that i earned. i paid all taxes due. i very strongly believe that we should have tax policies that make it difficult, if not impossible to shelter income from taxation.
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>> though much of the discussion was about tax reform and hopes by the administration according to lew they could accomplish individual and corporate tax reform he said he could do it in revenue neutral way. however lew wants revenue increases as part of a deficit deal before they move on to broader tax reform. this is where it gets confusings. you want revenue out of tax reform and revenue neutral system afterwards. how they would overhaul that is something senators tried to get at today. at least what you got out of lew is white house willingness to work on tax reform. one quick note. orrin hatch top republican of the committee, about any chance lew might have with the senate, he said lew did quite well today. back to you. liz: thank you very much, rich. adam shapiro on ebook world and how competitive it is. barnes & noble say the nook losses liz in 2013 will
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be greater than the losses in fiscal 2012. they say nook revenue in fiscal 2013 will be less than they expected. of course they had the announcement not too long ago they will be closing stores nationwide. more bad news for barnes & noble. >> we need our bookstores. thank you, adam. he left the rest of the competition barking mad. we'll tell but the 5-year-old dog that took the westminster show by storm. guess what? he speaks four languages. ashley: that's impressive. ♪ ( man ) legs up ! ( man ) legs up ?
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