Reuters: Hot Stocks: UPDATE 2-Teavana Holdings sees 1st-qtr below analysts' estimates

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UPDATE 2-Teavana Holdings sees 1st-qtr below analysts' estimates Mar 28th 2012, 14:06 Wed Mar 28, 2012 10:06am EDT * Sees Q1 EPS $0.09-$0.10 vs est $0.12 * Sees Q1 sales $44-$45 mln vs est $46.04 mln * Q4 EPS $0.32 vs est $0.31 * Q4 sales up 34 pct to $68.4 mln * Shares fall as much as 9 pct March 28 (Reuters) - Specialty tea retailer Teavana Holdings Inc forecast first-quarter results below market expectations, partly on higher costs, sending its shares down as much as 9 percent. Teavana, which went public in July last year, expects a first-quarter profit of 9 cents to 10 cents a share, below analyst estimates of 12 cents a share, according to Thomson Reuters I/B/E/S. First-quarter earnings will be hurt by stock compensation expenses and store opening costs, a company executive said in a call with analysts. "We expect to absorb significant (store) pre-opening expenses in the quarter without the corresponding increase in store sales and we anticipate a similar trend in the second and third quarter," the executive said. However, Teavana, which sells more than 100 varieties of premium loose-leaf tea, reported fourth-quarter results ahead of market expectations, boosted by higher same-store sales. The Atlanta, Georgia-based retailer said its comparable-store sales, including e-commerce, increased by 8.6 percent in the quarter. Overall sales rose 34 percent to $68.4 million, above the $67.55 million analysts were expecting. Teavana, founded in 1997, also reiterated its intent of opening new stores, growing its e-commerce business and expansion into newer markets. Last year it signed a 10-year deal to develop stores in the Middle East. For the fourth quarter ended Jan. 29, earnings rose to $12.5 million, or 32 cents per share, from $9.2 million, or 24 cents per share, last year. Analysts had expected a profit of 31 cents a share. Shares of the company were trading down 6 percent at $19.25 on Wednesday morning on the New York Stock Exchange. Link this Share this Digg this Email Reprints

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