1. Cosmetics giant Elizabeth Arden delivers ugly earnings
It's too bad you can't put some foundation and blush on a corporate earnings report to make it look better. That's what the cosmetics chemists over at makeup giant Elizabeth Arden (NASDAQ: RDEN ) wish they had done after the stock fell 22.8% Tuesday following its unattractive earnings report -- revenue fell 20% last quarter to $210.8 million, well below the $256.9 million Wall Street expected.
Unlike everyone's favorite model, Heidi Klum, Elizabeth Arden struggled all across Planet Earth to kick off 2014. In North America, sales fell 23% as the company launched fewer fragrances than usual and dealt with the brutal winter weather deterring beauty-seeking consumers. And despite Arden's presence in 120 countries worldwide, international sales fell 16% after management "strategically decides" to reduce its shipments to avoid giving out brand-hurting discounts at the end of the season.
The takeaway is that Elizabeth Arden is trying to get picked up like it's on a corporate date. Just last month, Household Health & Care announced that it was interested in purchasing Arden. So during the earnings report, the company tried to please investors by mentioning that it's working with Goldman Sachs, as if the bank is a matchmaker, to explore "strategic options" for its future.
2. Green Mountain Coffee Roasters enjoys some Coke love
It was a caffeine surge for Keurig Green Mountain (NASDAQ: GMCR ) after soda giant Coca-Cola (NYSE: KO ) announced Tuesday it will buy millions more shares of the K-Cup coffee company. Coke's big buy is driving up Green Mountain's share price, which neared an all-time high after the huge endorsement, gaining 7.6%.
The biggest global brand can't get enough of the coffee company. After taking a 10% stake in the company this February, Coca-Cola is doubling down on its bet that Keurig coffee can be the growth engine it needs. Suddenly, Green Mountain shares are the hottest thing in Vermont since the Purple's Pleasure sandwich hit the college town of Middlebury.
The next frontier for Green Mountain will be a single-cup Keurig soda maker. As the company takes on Israel-based SodaStream (NASDAQ: SODA ) in its own market, it will be good to have the biggest soda company in the world supporting it. Coca-Cola will be the biggest owner of the company, with 16% of the shares.
Remember that soda sales dropped globally this past quarter for Coke for the first time since 1999 (thanks, juice cleanse trend), so investors are craving growth from healthier beverage options. One part of the answer is Green Mountain -- it's been an awesome stock for years, growing to a $20 billion company as the single-cup coffee revolution has swept America, one Keurig machine at a time.
As originally published on MarketSnacks.com
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