Consumer Sector Update: March 17, 2011

March 17, 2011

Consumer shares are higher in mid-day trading, while Kimberly-Clark Corp. (KMB) is up near 1%, although selling has moved it off its early high of $63.96. This comes after announcing this morning that it is raising prices on a range of products, including diapers and bathroom tissue. The price increases will come in the second and third quarters due to higher raw materials costs. Colgate-Palmolive Co. (CL) and Procter & Gamble Co. (PG) have also said they are likely to boost their prices, according to the Associated Press. Meanwhile, Lululemon (LULU) reports 4th Quarter revenue of $245Million, better than the analyst consensus of $239Million on Reuters. Earnings were $0.64, vs. expectations of $0.57 per share. For Q1, the company sees revenue in the range of $175 to $180MLN and EPS of $0.36 to $0.38 per share. The Street view is $181Mln in revenue and earnings of $0.36 per share.