WEEK AHEAD: Costco Among Group of Retailers Reporting Next Week

   By Ben Fox Rubin 
 

Earnings results from big and notable companies will be sparse next week, so--just like this week--the primary fare will be a handful of retailers. On the data side, some consumer data are expected, as well as an update on first-quarter gross domestic product.

Markets are closed Monday for Memorial Day.

 
   Costco Among Retail Group Reporting 
 

Amid a quiet and shortened trading week, Costco Wholesale Corp. (COST) will be the biggest name on the earnings calendar. It reports Thursday.

Costco's sales have mostly topped Wall Street's expectations in recent quarters, thanks in part to a shaky economy encouraging shoppers to make bulk purchases at its warehouse clubs. Costco also sells its gasoline for less than area pumps, which has contributed to higher traffic at its stores. But like many other retailers, Costco has faced rising costs for merchandise. Analysts polled by Thomson Reuters expect per-share earnings to rise 17% and revenue to grow 8%.

The company will be joined by a handful of other retailers, including Tiffany & Co. (TIF), shoe companies DSW Inc. (DSW) and Brown Shoe Co. (BWS), and women's apparel retailers Wet Seal Inc. (WTSL) and Chico's FAS Inc. (CHS). Luxury watchmaker Movado Group Inc. (MOV) will also be reporting.

 
   Splunk, Joy Global, Lions Gate 
 

The lighter week will include a smattering of companies from other sectors, including data-analysis firm Splunk Inc. (SPLK), mining-equipment maker Joy Global Inc. (JOY), doughnut chain Krispy Kreme Doughnuts Inc. (KKD) and movie studio Lions Gate Entertainment Corp. (LGF).

Lions Gate has been edging its way into the ranks of Hollywood's more powerful studios with the box-office success of "The Hunger Games" and its acquisition last year of independent studio Summit Entertainment LLC, which gave it control of the "Twilight" series. For its previous quarter, the company saw revenue more than double thanks in part to the domestic theatrical box-office performance of "The Twilight Saga: Breaking Dawn--Part 2." Analysts expect the company to swing to a per-share profit in the latest quarter, after it was bogged down a year earlier by Summit acquisition costs, and revenue should grow 13%.

 
   First-Quarter GDP Update 
 

On Thursday, the Commerce Department is scheduled to report its second look at first-quarter gross domestic product. Economists say the additional data now available will cause real GDP growth to be revised to an annual rate of 2.4%, little changed from 2.5% reported a month ago.

On Friday, data on consumer income and spending for April will be reported. Economists think the household sector started the second quarter on wobbly legs. Personal income is forecast to be up just 0.1% last month, while spending was flat.

--Kathleen Madigan contributed to this article.

Write to Ben Fox Rubin at [e-mail]

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