Showing Mom Her Worth

When Anna Jarvis spearheaded the first Mother’s Day events in 1908, the idea was to honor our mom’s and remind us of the special debt of gratitude we owe them. If you’re mother has regaled you time and again with stories of her days of labor bringing you into the world and the grey hairs you gave her once you were here, you probably don’t need another reminder. Still, Jarvis’s heart was certain in the right place.

But even Jarvis herself wasn’t thrilled with the commercialization of the holiday. Congress recognized Mother’s Day as a holiday in 1914, but by 1920 Jarvis was campaigning to have the holiday abolished and she had some choice names for the florists and greeting card companies that were profiting from it. If she was teed off then, she’s rolling in her grave now.

It’s estimated that we spent $19 billion on Mother’s Day last year, so it’s still a big business holiday. This year the price tag will be even higher as the National Retail Federation expects spending to top $21 billion. By way of comparison, only $12.5 billion was spent on us dad’s last Father’s Day – just that that was worth pointing out.

One of the reasons the Mother’s Day price tag keeps growing is that women’s gift preferences are changing. A survey by Offers.com found that most moms now choose experiences over material gifts. So while meals out, gift cards and flowers are still the most common maternal tributes, more people are expected to travel for Mother’s Day than in years past.

That’s good news for airlines like Personal Finance Growth Portfolio holding Delta Air Lines, though they probably don’t really need the boost.

Airlines have been high flyers of late, getting a lift from an improving U.S. economy and low oil prices. In fact, oil prices have gotten so low that Delta (NYSE: DAL) actually had to take some charges on its fuel price hedging program, contributing to a 3.5% ding to revenue in the first quarter. Despite that, earnings still beat estimates in the quarter as domestic revenue per mile (RPM) rose 2.6% and international RPM was up 0.6%, despite the stronger dollar.

Perhaps most impressive though was operating margin expansion, rising 90 basis points to 8.8%. If the impact of the fuel hedges are backed out, you could have flown a Boeing 777 through the wide 17.8% margin.

While the airline industry is certain to continue facing challenges from the strong dollar and stiff competition from foreign carriers in the U.S. market, it’s about as healthy as it has been in the better part of decade. That makes airlines a good investment, particularly when the airports are full on Mother’s Day thanks to all those top-10 holiday destination lists on the internet.

If you have a more sedate Mother’s Day in mind, you might like ConAgra Foods. The company makes branded foods ranging from Act II microwave popcorn to Reddi-Whip whipped cream – I suspect a lot of Mom’s will be telling their kids not to eat it straight out of the can this weekend – and supplies foods to restaurants and other commercial kitchens. With each of its top 15 brands generating more than $100 million in annual sales, if you plan on whipping up breakfast in bed for Mom or taking her to a special dinner, at least one of its products is likely in the meal.

ConAgra’s (NYSE: CAG) earnings and revenue growth have been somewhat lackluster recently, largely thanks to rising costs and some underperforming brands. New CEO Sean Connolly is widely expected to cut some underperformers loose, even as the company has cut costs by simplifying its supply chain and reducing its number of employees. That will give the new chief breathing room to rethink the business and, given Connolly’s long experience in the industry, which should pay off in spades.

Regardless of whether you’re a high flyer and taking your mother to an exotic locale, or your tastes are more sedate and you plan on a fancy dinner, Mother’s Day is big business and we have all the angles covered in Personal Finance.