Based on the book by Elizabeth Gilbert that has sold over 5 million copies in the United States about a 30-something woman who gets a divorce and leaves her New York life behind to go to Rome, India and Bali for a year to find herself, the movie is propelling a large marketing push into areas you wouldn't normally associate with a film.
Looking for Indian Prayer Beads?
Suddenly Eat Pray Love is everywhere from yoga bags, to hats, to pasta, to vacation and meditation trips.
The Four Seasons, for example, is offering the "Bali, Pray, Love Package" at its Four Seasons Resort Bali where you can also have a personal consultation with Ketut Liyer, who is the actual spiritual guru/medicine man in the book.
With retailers looking for any "catch" in order to get shoppers into the stores, appealing to the female demographic between the ages of 18 and 50 seems like a sure bet.
But will the marketing work?
Will women who liked the book, and now see the movie, really buy the Eat Pray Love pasta basket?
Who's Hoping You'll Eat Pray and Love With Them?
Cost Plus World Market (CPWM) the food and home decor store has an immediate connection with the themes of the movie because it has historically carried food and furniture from Indonesia and India.
For the Eat Pray Love promotion, it is carrying an Italian Gift Basket filled with food, an exclusive Eat Pray Love Tea, leather journals from India to write down your deepest thoughts, and, of course, special Eat Pray Love wine from Italy.
The company is also offering a sweepstakes with the chance to win a trip to Italy, Bali and India.
Fundamentals
Cost Plus has been in a comeback mode in recent years. The company lost $2.39 per share in fiscal 2009 but is expected to grow earnings by 64.9% in fiscal 2010. The fiscal 2010 Zacks Consensus calls for a loss of just 84 cents.
Cost Plus is a Zacks #3 Rank (hold) stock.
Kohl's Corporation (KSS), the moderately priced department store with clothing, accessories, beauty, and home goods, doesn't have as many tie-ins as Cost Plus.
But it's offering a sweepstakes with a chance to win a trip to Rome for the premiere of the movie.
Fundamentals
Kohl's just reported fiscal second quarter results on Aug 12 which saw sales rise 9.3% to $8.1 billion from a year ago. Same store sales climbed 5.9% during the same period.
However, the company narrowed its full year earnings per share guidance range by shaving 5 cents off the top to between $3.57 and $3.70. Kohl's saw some consumers staying cautious in the second half of the year due to employment worries.
Kohl's is a Zacks #3 Rank (hold) stock. Estimates will, however, be adjusted based on the company's recently revised earnings guidance.
Sony Corporation (SNE), the technology and entertainment company, owns Sony Pictures Entertainment, the studio which is releasing Eat Pray Love.
The company also manufactures the Sony Reader, its digital ebook reader, where you can read the digital version of Eat Pray Love. (In fact, in Sony's ads for the reader on its site, it is prominently featuring Eat Pray Love as the book on the reader while it cross promotes it with the movie.)
Fundamentals
The parent company, Sony, is expected to make a profit of 65 cents in fiscal 2010 which is an improvement over the 44 cent loss it took in fiscal 2009. That is a 248% jump in earnings per share.
Still, the full year has weakened in the last month as the Zacks Consensus has dropped by 16 cents during that time.
Sony recently surprised by 37 cents as revenue rose 3%. The quarter was boosted by strong sales of televisions and computers.
The company is not cheap. It is trading with a nose bleed forward P/E of 46.
Sony is also a Zacks #3 Rank (hold) stock.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at twitter.com/traceyryniec.
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