Disney’s Magical Earnings; Staples looking to Buy $6.3 billion Worth of…More Staples; Ralph Lauren’s Earnings Not Looking Stylish

Let it surge…

Image courtesy of iosphere/FreeDigitalPhotos.net

Image courtesy of iosphere/FreeDigitalPhotos.net

Shares of Walt Disney Co. hit a spell-binding all-time high to just under $100 a share after it came out with its first quarter earnings. While the magical company behind the even more magical kingdom didn’t give all the credit to “Frozen,”  executives did mention the movie of sisterly love a whopping 24 times during the company conference call. One might think, based on that call, that “Frozen” is Disney’s only franchise. But in fact, the company has 11 of them raking in over $1 billion a year. Perhaps you’ve heard of one that goes by the name “Star Wars”? Or how ’bout the folks who call themselves, “The Avengers”? Then there’s that dude in spandex, who anointed himself “Spiderman” as he shares a lot in common with the arachnid community. Oh and don’t forget Cinderella either. But yeah, the “Frozen” phenomenon and all its related merchandise did do a lot for Disney’s record quarterly sales which saw major action during the holiday season. Walt Disney Co. also has tons of other stuff things going on and making money like say, theme parks, ESPN, and all sorts of (expensive) entertainment of the non-franchise variety. The House of Mouse pulled in a profit of $2.18 billion and $1.27 per share. Clearly analysts have yet to see “Frozen” as they only expected Disney to come in at $1.07 per share.

Man, that’s a lot of staples…

Image courtesy of anankkml/FreeDigitalPhotos.net

Image courtesy of anankkml/FreeDigitalPhotos.net

Staples is looking to add to its arsenal of staples by buying Office Depot to the tune of $6.3 billion at roughly $11 per share. It’s their second go at it. In 1996, the two companies tried to merge but the FTC put the kibosh on the deal over antitrust concerns.  Something about giving the American people a choice, I suspect.  This impending merger is still subject to regulatory approval however, it’s not expected to be challenged this time for two very nifty reasons: 1.) The FTC already approved the Office Depot/OfficeMax merger, so it would be so unfair if it didn’t approve this one and 2.) The internet has changed things so the FTC isn’t so worried about Staples being the only office supply game in town. Besides, even if the FTC says no to the union, it’s still a win for Office Depot as Staples will pay $250 million to OfficeDepot as a break-up fee. Gotta love a break-up fee. The two companies have 4,000 stores between them, though Staples has been in the process of closing down over 200 stores to boost profits while Office Depot has been closing unnecessary stores after its OfficeMax merger.

So passé…

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

Image courtesy of David Castillo Dominici/FreeDigitalPhotos.net

Ralph Lauren’s clothes may be beautiful but its earnings sure aren’t. The famed iconic apparel company, which also owns Club Monaco and American Living, actually had to lower its full year revenue growth forecast. Again. Basically, the company is saying that it doesn’t expect to pull in as much money as its investors would like and they should brace themselves. Because it’s never the fault of the company when it posts bad earnings, Ralph Lauren is blaming that annoying strong dollar of ours and also the fact that people here aren’t buying the stuff. Except on Wall Street they say “weak consumer spending” like it’s our fault. Profit for the company was $215 million and $2.41 per share. Sounds decent except when you consider that last year, the  label pulled in $237 million and $2.57 per share. Meanwhile, revenue was up. A little. By 0.9%. To around $2.03 billion. Oh well.

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