It's not just well-run athletic shoe companies like Nike (NYSE:NKE) or Adidas (Nasdaq:ADDYY) that can reward shareholders. The shares of companies that fall more into the “lifestyle footwear” category like Brown Shoe (NYSE:BWS) and Wolverine (NYSE:WWW)
have also done quite well over the past year, with the later clearly
benefiting from the huge scale-up provided by the PLG acquisition. While
I'll admit that underestimating Wolverine could be dangerous as it
continues to surpass sell-side estimates, it's hard for me to see the
value argument for these shares right now.
Please read the full article here:
http://www.investopedia.com/stock-analysis/070913/wolverine-surpassing-its-marks-not-cheap-www-bws-vfc-nke.aspx
Showing posts with label VF Corp. Show all posts
Showing posts with label VF Corp. Show all posts
Tuesday, July 9, 2013
Saturday, March 23, 2013
Investopedia: Have See-Through Pants Created An Opportunity In lululemon Shares?
For a stock with a take-no-prisoners valuation, the reaction to Lululemon Athletica's (Nasdaq:LULU)
sizable product recall has been quite restrained. Even with a defective
batch of the company's top product taking steam out of the first
quarter's comp growth, this company is still growing and seeing good
success in broadening its product offerings. While there is a limit to
how many missteps customers will tolerate from a company selling
premium-priced products, Lululemon has
been relatively proactive and upfront in dealing with the issue.
Although I still believe the growth expectations here are still pretty
aggressive, investors who believe otherwise could see this as an
opportunity to pick up shares.
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Friday, December 28, 2012
Investopedia: China's Sluggish, But Nike's Growing Well Everywhere Else
Nike (NYSE:NKE)
gave investors a rare chance to pick up shares at a more reasonable
price twice this year, but it looks like it's back to business as usual
for the world's biggest footwear company. Although business in China
remains sluggish, Nike's overall growth and margin profile continue to
look quite strong.
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Friday, December 7, 2012
Investopedia: lululemon Continues To Deliver High-Priced Performance
"Pay for performance" has long been a mantra on Wall Street, and it's a little harder to condemn athletic apparel maker lululemon athletica (Nasdaq:LULU)
for its valuation when it continues to perform as well as it does. Not
only does the company continue to move truly impressive quantities of
premium-priced merchandise, but the company's cautious inventory and
expansion philosophies mitigate some of the normal retailing risks. All
of that said, investors aren't getting any bargains in these shares.
Read more here:
http://www.investopedia.com/
Read more here:
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Monday, November 5, 2012
Investopedia: Uniting CK Should Pay Off For PVH Corp
The apparel and footwear sectors have been seeing more than their share
of acquisition activity over the past year, as companies look to better
leverage supply chains and distribution and better compete with overseas
competitors. PVH Corp (NYSE:PVH) is paying a lot to bring Warnaco (NYSE:WRC)
into the fold (and further consolidate the Calvin Klein brand), but
this deal looks like a relative win-win, where both the acquirer and the
acquired are making a smart deal.
To read more, please click here:
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To read more, please click here:
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Monday, October 1, 2012
Investopedia: China Still A Pebble In Nike's Shoe
The investment community seems to have locked on to Nike's (NYSE:NKE)
"China problem," and this quarter's results aren't going to help. The
good news is that investors can still take advantage of this situation
to build a position in a stock that very rarely ever gets down to a fair
price, let alone cheap. The bad news, however, is that results could
slow in the interim and Wall Street is very much a "what have you done
for me lately?" sort of business.
To read more, please follow this link:
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To read more, please follow this link:
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Thursday, August 30, 2012
Investopedia: Should Investors Pay Full Price For PVH?
Despite a steady drumbeat of doom and gloom (it's an election year after
all), investors haven't needed much coaxing to buy up retail and
apparel stocks this year. PVH (NYSE:PVH)
has a lot going for it, including two well-known brands that seem
capable of defying gravity in Europe, but the stock's performance has
already more than doubled that of the S&P 500 over the trailing
year. While the company does seem to have operating momentum on its
side, valuation already presumes a lot of things go right for this
company.
Continue reading here:
http://www.investopedia.com/
Continue reading here:
http://www.investopedia.com/
Wednesday, July 11, 2012
Investopedia: A Small Miss Means Little for The Long Term At Wolverine
Starting around September of this year, the next couple of years at Wolverine (NYSE:WWW) could be very interesting. The billion dollar-plus acquisition of Collective Brands' (NYSE:PSS)
Performance and Lifestyle Group holds the promise of transforming the
company from a high-return/low-growth cash-farmer into a company that
produces both robust returns and solid growth. Against that backdrop, a
two-cent miss in quarterly earnings just doesn't seem like a big deal and this looks like a stock that could still be an attractive buy today.
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Monday, March 26, 2012
Investopedia: Nike Running Away From Everything
When companies with great brands go on runs, all you can really do is hang on for the ride (if you own shares) or wait in the hopes of a stumble somewhere down the line (if you don't). By no means is Nike (NYSE:NKE) cheap right now, but it's hard to fault a huge global leader that is growing by double-digits and could yet double revenue over the next decade (if not sooner).
Another Good Quarter ... Mostly
Although it wasn't a flawless fiscal third quarter, on the whole Nike did a very good job and business is strong. Revenue rose 15%, as the company logged double-digit sales in all of its major categories. Sales to North America (the largest region) rose 17%, while sales to China rose over 25%, despite a somewhat sluggish performance in apparel.
Please read more here:
http://stocks.investopedia.
Another Good Quarter ... Mostly
Although it wasn't a flawless fiscal third quarter, on the whole Nike did a very good job and business is strong. Revenue rose 15%, as the company logged double-digit sales in all of its major categories. Sales to North America (the largest region) rose 17%, while sales to China rose over 25%, despite a somewhat sluggish performance in apparel.
Please read more here:
http://stocks.investopedia.
Monday, October 17, 2011
Investopedia: Liz Claiborne Starts Over
Sometimes press releases can understate just what's actually going on. That certainly seems to be the case with Liz Claiborne (NYSE:LIZ). While this well-known women's clothing designer and marketer talked about "transactions" in the headline of its recent release, the reality is that the company largely sold itself and is basically going to cease to exist as Liz Claiborne.
From Distribution to Ownership
Liz Claiborne and J.C. Penney (NYSE:JCP) have had a longstanding relationship, and JCP was already the exclusive license partner for the Liz Claiborne brands. The two companies have taken a big step forward though, as LIZ will be selling the Monet and Liz Claiborne brands to J.C. Penney for $288 million in total cash considerations. LIZ will maintain the international rights for Monet, will continue to supply Liz Claiborne and Monet-branded jewelry to J.C. Penney and will hold a royalty-free license on LCNY and Lizwear, but will otherwise be out of these businesses.
Read the complete article at this link:
http://stocks.investopedia.
Tuesday, October 4, 2011
Investopedia: Wolverine Still A Winner
The footwear market has been mixed up for a while now and this quarter really has not been all that different. Struggling names like Brown Shoe (NYSE:BWS), Collective Brands (NYSE:PSS), and Skechers (NYSE:SKX) continue to have their issues, while companies like Nike (NYSE:NKE) and Wolverine (NYSE:WWW) continue to offer shoppers what they want even at higher price points.
Solid Third Quarter Performance
Wolverine had a bit of a problem last quarter when its outlook disappointed investors and they sold off the stock. As has been the case more often than not in this company's history, though, that conservatism was another set-up for an "under-promise, over-deliver" quarter.
Click the link for the full piece:
http://stocks.investopedia.
Solid Third Quarter Performance
Wolverine had a bit of a problem last quarter when its outlook disappointed investors and they sold off the stock. As has been the case more often than not in this company's history, though, that conservatism was another set-up for an "under-promise, over-deliver" quarter.
Click the link for the full piece:
http://stocks.investopedia.
Tuesday, September 27, 2011
Investopedia: Nike Asks, "What Slowdown?"
Few companies get as much credit for its brand value as Nike (NYSE:NKE), but brand value alone does not seem to explain why the company continues to do so well in an environment where consumers are looking left and right for bargains. The fact is, while Nike may not offer the cheapest options in its categories, the price gap is not as large as it used to be and the company has done a very good job of delivering value for money. (If you are interested in value investing, read The Value Investor's Handbook.)
A Good Start to the Fiscal Year
With 18% reported revenue growth and 11% constant currency growth, Nike is starting this fiscal year right. Nike logged 15% growth in North America, while Western Europe was flat on a constant currency basis and China was somewhat sluggish at 9% growth. Emerging markets continue to offer a lot of growth for Nike (up 24%), but are still a fairly small part of the total. On a product line basis, apparel was the laggard with 9% growth (hurt in part by difficult soccer comps), but footwear climbed 13%.
Read the full piece here:
http://stocks.investopedia.
A Good Start to the Fiscal Year
With 18% reported revenue growth and 11% constant currency growth, Nike is starting this fiscal year right. Nike logged 15% growth in North America, while Western Europe was flat on a constant currency basis and China was somewhat sluggish at 9% growth. Emerging markets continue to offer a lot of growth for Nike (up 24%), but are still a fairly small part of the total. On a product line basis, apparel was the laggard with 9% growth (hurt in part by difficult soccer comps), but footwear climbed 13%.
Read the full piece here:
http://stocks.investopedia.
Thursday, July 14, 2011
Investopedia: Expectations Gnaw At Wolverine
Would the real footwear market please stand up? Athletic shoe companies like Nike (NYSE:NKE) and Adidas (OTCBB:ADDYY) have been quite strong, and so has fashion-oriented Steven Madden (Nasdaq:SHOO). And then there are the likes of Collective Brands (NYSE:PSS), Brown Shoe (NYSE:BWS) and Skechers (NYSE:SKX) with weak sales and even weaker stocks.
Wolverine (NYSE:WWW) is on the stronger end of the range, even if the Street was not falling over itself to reward the company for solid second quarter results. Then again, if conservatism is the biggest sin of Wolverine, long-term shareholders should not be bothered by the quarterly noise. (For related reading, see Strategies For Quarterly Earnings Season.)
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Wolverine (NYSE:WWW) is on the stronger end of the range, even if the Street was not falling over itself to reward the company for solid second quarter results. Then again, if conservatism is the biggest sin of Wolverine, long-term shareholders should not be bothered by the quarterly noise. (For related reading, see Strategies For Quarterly Earnings Season.)
To continue, click below:
http://stocks.investopedia.
Monday, June 13, 2011
Investopedia: VF Corp Laces Up Timberland
I've been thinking (and writing) for a little while now that several footwear stocks just look too cheap relative to even modest growth expectations. Apparently VF Corp (NYSE:VFC), one of the largest apparel makers in the world, agrees. Before the open of trading, VF Corp announced that it was acquiring outdoor footwear maker Timberland (NYSE:TBL) in a cash deal worth roughly $2 billion.
For VF Corp, this is an interesting expansion into new territory. For Timberland shareholders, it is a bittersweet end for a company that has not only been run well, but has frequently been lauded by the ethical investing crowd for its policies and philosophies. There's even something here for investors with no direct stake in either company - perhaps it is at least partial validation that footwear companies have traded too low in this latest market pullback.
The Deal to Come
Assuming that all of the necessary "i's" are dotted and "t's" crossed, VF Corp will acquire Timberland for $43 per share in cash. That represents a premium of 43% to Friday's closing price, a little less than $3 from the all-time high for the stock (set just back in late April, prior to a major fall due to an earning miss), and pretty much the full value for the shares.
To read the full piece, please follow the link:
http://stocks.investopedia.
For VF Corp, this is an interesting expansion into new territory. For Timberland shareholders, it is a bittersweet end for a company that has not only been run well, but has frequently been lauded by the ethical investing crowd for its policies and philosophies. There's even something here for investors with no direct stake in either company - perhaps it is at least partial validation that footwear companies have traded too low in this latest market pullback.
The Deal to Come
Assuming that all of the necessary "i's" are dotted and "t's" crossed, VF Corp will acquire Timberland for $43 per share in cash. That represents a premium of 43% to Friday's closing price, a little less than $3 from the all-time high for the stock (set just back in late April, prior to a major fall due to an earning miss), and pretty much the full value for the shares.
To read the full piece, please follow the link:
http://stocks.investopedia.
Thursday, March 31, 2011
Investopedia: High Cotton Or Not, Phillips-Van Heusen Worth A Look
There are not too many truly cheap stocks out there, nor a surplus of stories that are completely spot-free. In times like these, investors have to move on to stories where certain concerns are inflated or where undervaluation lies beyond the quick valuation ratios and in the cash flow capabilities of the company. Clothing wholesaler and retailer Phillips-Van Heusen (NYSE:PVH) is one such candidate - a quality company that is not necessarily cheap on first blush, but looks like a quality undervalued opportunity.
A Solid End to the Year
PVH's earnings are not necessarily easy to digest - the company made a major acquisition (Tommy Hilfiger) and that makes the year-on-year comparisons a little more difficult. To the company's credit, though, they give investors an unusually-extensive amount of financial detail and it looks like the quarter was solid with or without the acquisition.
As reported, revenue jumped almost 128% to just under $1.4 billion, and beat the average analyst guess. The inclusion of over $700 million in Tommy Hilfiger revenue clearly made a major difference, though the core organic growth rate looks like it came in at more than 12%. In particular, the Calvin Klein business rose over 18%, with licensing revenue (from the likes of Warnaco (Nasdaq:WRNC) and G-III Apparel (Nasdaq:GIII)) up 11%.
Profitability was more of a mixed story. Gross margin did improve almost three points, but that was still less than most analysts expected. Likewise, adjusted operating margin of over 9% was not bad but not great relative to expectations. All in all, then, PVH's outperformance this quarter was fueled by higher sales and lower taxes, offset by some margin challenges.
To read the full piece, please go to:
http://stocks.investopedia.
A Solid End to the Year
PVH's earnings are not necessarily easy to digest - the company made a major acquisition (Tommy Hilfiger) and that makes the year-on-year comparisons a little more difficult. To the company's credit, though, they give investors an unusually-extensive amount of financial detail and it looks like the quarter was solid with or without the acquisition.
As reported, revenue jumped almost 128% to just under $1.4 billion, and beat the average analyst guess. The inclusion of over $700 million in Tommy Hilfiger revenue clearly made a major difference, though the core organic growth rate looks like it came in at more than 12%. In particular, the Calvin Klein business rose over 18%, with licensing revenue (from the likes of Warnaco (Nasdaq:WRNC) and G-III Apparel (Nasdaq:GIII)) up 11%.
Profitability was more of a mixed story. Gross margin did improve almost three points, but that was still less than most analysts expected. Likewise, adjusted operating margin of over 9% was not bad but not great relative to expectations. All in all, then, PVH's outperformance this quarter was fueled by higher sales and lower taxes, offset by some margin challenges.
To read the full piece, please go to:
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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