Investors in growth stocks often like to imagine that the sheer growth
potential of the company in question can overpower any adverse macro
trends that may be impacting the industry. Sometimes that's true, but
more often it's the case that these macro trends produce at least some
noticeable headwinds. That seems to be the case for Francesca's Holdings (Nasdaq:FRAN),
where the oft-cited weather issues in the spring of this year impacted
even this small, growing retailer. As a somewhat expensive and heavily
shorted retailer, it's not altogether surprising that pre-market trading
points to a rough day for the shares.
Please follow this link for the full article:
http://www.investopedia.com/stock-analysis/060613/growing-pains-francescas-holdings-fran-urbn-jwn-bebe.aspx
Showing posts with label Bebe. Show all posts
Showing posts with label Bebe. Show all posts
Thursday, June 6, 2013
Friday, May 18, 2012
Investopedia: Chico's Growing Again, But Sustainability Always A Concern
Retailers aren't commonly considered cyclical stocks, but I think
they probably should be. Not only are clothing retailers vulnerable to
the economic cycle, but also the vagaries of merchandising and customer response to their product line up. Companies as varied as American Eagle Outfitters (NYSE:AEO), Abercrombie & Fitch (NYSE:ANF), Bebe (Nasdaq:BEBE) and Chico's (NYSE:CHS) have all shown this boom-bust pattern in their financial reports and it appears to be a "feature" of the industry.
Continue here:
http://stocks.investopedia.
Monday, June 13, 2011
Investopedia: Lululemon's Growth Moots The Valuation
Traditional value investors probably didn't like Lululemon Athletica (Nasdaq:LULU) before Friday's earnings report, and they are not likely to appreciate it any more afterward. So, for those who think the secret to successful stockpicking is in targeting single-digit EV/EBITDA ratios, sub-1.0 PEG ratios, or similar formulas, Lululemon just is not going to work for them.
For growth investors, though, this is a name that just keeps delivering the goods. There will be a day of reckoning, a day when the growth disappoints and investors suddenly realize that the low-hanging fruit has been plucked, but that day isn't today and it does not look like it's going to be tomorrow either. In the meantime, aggressive investors may continue to benefit from one of the most dynamic stories in retail.
A Strong Start to the Fiscal Year
Lululemon delivered 35% revenue in the fiscal first quarter, with comp-store sales up 16% in constant dollar terms. Few retailers are approaching this sort of growth these days. That said, it looks like maybe Wall Street has caught up to the name a bit - the company did surpass the average analyst estimate, but not by much and the company definitely did not beat the highest end of the range.
Please continue via the link:
http://stocks.investopedia.
For growth investors, though, this is a name that just keeps delivering the goods. There will be a day of reckoning, a day when the growth disappoints and investors suddenly realize that the low-hanging fruit has been plucked, but that day isn't today and it does not look like it's going to be tomorrow either. In the meantime, aggressive investors may continue to benefit from one of the most dynamic stories in retail.
A Strong Start to the Fiscal Year
Lululemon delivered 35% revenue in the fiscal first quarter, with comp-store sales up 16% in constant dollar terms. Few retailers are approaching this sort of growth these days. That said, it looks like maybe Wall Street has caught up to the name a bit - the company did surpass the average analyst estimate, but not by much and the company definitely did not beat the highest end of the range.
Please continue via the link:
http://stocks.investopedia.
Monday, March 21, 2011
Investopedia: How Far Can Lululemon Stretch?
By any reasonable standards, lululemon athletica (Nasdaq:LULU) has been a fantastic stock over the past two years. Not only has it tripled in value since its debut, but investors who loaded up on these shares in a big way in early 2009 are also looking at a 10-bagger or better. An investor only needs to hit a couple of those in a lifetime to do very well indeed.
But the big question is whether lululemon can maintain the momentum. Everything looks great for the company today, but grizzled retailing investors have seen stories like lululemon before and unfortunately, many of these stories do not have happy endings. (For background reading, see Analyzing Retail Stocks.)
A Solid End to the Fiscal Year
For a company with a track record of blowing away estimates, lululemon's fiscal fourth quarter results were surprising only to a certain degree. Revenue jumped 53% and surpassed the top end of the analyst range, helped in large part by comp-store growth of 28%. Direct-to-customer sales growth was also strong (up 152%), but still constitutes a fairly low percentage of sales.
Please click here for the full piece:
http://stocks.investopedia.
But the big question is whether lululemon can maintain the momentum. Everything looks great for the company today, but grizzled retailing investors have seen stories like lululemon before and unfortunately, many of these stories do not have happy endings. (For background reading, see Analyzing Retail Stocks.)
A Solid End to the Fiscal Year
For a company with a track record of blowing away estimates, lululemon's fiscal fourth quarter results were surprising only to a certain degree. Revenue jumped 53% and surpassed the top end of the analyst range, helped in large part by comp-store growth of 28%. Direct-to-customer sales growth was also strong (up 152%), but still constitutes a fairly low percentage of sales.
LULU once again coupled strong sales with impressive operating leverage. Gross margin jumped almost five full points, and the company's operating income grew 72%. LULU has exceptional operating margins for the retail sector - they're at 29% (up from just under 26% a year ago) - and the company once again delivered earnings per share well in excess of analyst expectations. (For more insight, see The Bottom Line On Margins.)
Please click here for the full piece:
http://stocks.investopedia.
Thursday, December 9, 2010
Lululemon Masters The Upward-Profits Pose
I am not aware of a "ring the cash register" pose in yoga, but if there is one, I have no doubt that Lululemon Athletica (Nasdaq:LULU) has mastered it. Combining a healthy living and pro-environment shtick with truly well-designed, well-crafted and well-marketed apparel, Lululemon is carving out a very successful niche in women's athletic apparel market and driving value-centered investors to distraction.
A Limber Third Quarter
It is a real challenge to find a metric in which Lululemon did not excel in its fiscal third quarter. Revenue jumped almost 56% to $176 million, leaving the highest published estimate in the dust. Likewise, comp-store sales growth of 29% was outstanding and the company produced an eye-popping amount of productivity (nearly $2,000 in sales per gross square foot of selling space, on an annualized basis). Sure, that's less than what, say, Tiffany (NYSE:TIF) does, but they sell diamonds! Compared to other clothing retailers, even solid performers like Urban Outfitters (Nasdaq:URBN) or Limited's (NYSE:LTD) Victoria's Secret cannot come close to that level of performance.
Please click below for the full article:
http://stocks.investopedia.
A Limber Third Quarter
It is a real challenge to find a metric in which Lululemon did not excel in its fiscal third quarter. Revenue jumped almost 56% to $176 million, leaving the highest published estimate in the dust. Likewise, comp-store sales growth of 29% was outstanding and the company produced an eye-popping amount of productivity (nearly $2,000 in sales per gross square foot of selling space, on an annualized basis). Sure, that's less than what, say, Tiffany (NYSE:TIF) does, but they sell diamonds! Compared to other clothing retailers, even solid performers like Urban Outfitters (Nasdaq:URBN) or Limited's (NYSE:LTD) Victoria's Secret cannot come close to that level of performance.
Please click below for the full article:
http://stocks.investopedia.
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