All posts in category Fashion

Gildan Activewear Inc.

Gildan Activewear

Gildan Activewear (Photo credit: Wikipedia)

GIL : NYSE : US$36.55
BUY 
Target: US$42.00

COMPANY DESCRIPTION:
Gildan is one of North America’s premier vertically integrated apparel manufacturers, focusing on frequent replenishment items with relatively low fashion risk. The company sells to the wholesale market, along with directly to retail.

RECORD RESULTS TO BEGIN F2013


Investment recommendation
We are raising our target price to US$42.00 (from US$41.00) following strong Q1/F13 earnings results.
Investment highlights
 Gildan reported Q1/F13 earnings results on Wednesday, after the market close. Revenue increased 39% YoY to $421 million, ahead of
previous guidance of $400 million. After excluding restructuring and acquisition related costs, EPS of $0.32 was ahead of consensus of $0.30 and well above Q1/F12 at -$0.38. Gildan reiterated its F2013 EPS guidance of $2.60-2.70, although we believe this has room for upward revisions as the year progresses.
 During the quarter Printwear sales grew an impressive 66% YoY to $244 million, driven by higher overall unit volumes, the nonrecurrence
of both inventory destocking and the distributor devaluation discount which occurred last year. Promotional discounting in the channel was also lower than previously anticipated. Meanwhile, Branded Apparel sales improved 13% YoY due to increased sales of Gildan branded products, which offset lower YoY sock sales.
Valuation
Our 12-month US$42.00 target price represents 15.7x our F2013 EPS estimate of $2.68. We believe there is a strong probability for upward
guidance revisions as the year progresses, should cotton prices remain range-bound, and should Gildan secure additional retail wins and
wholesale market share.

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by jackbassteam on February 8, 2013  •  Permalink
Posted in Fashion, Retail Stores
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Posted by jackbassteam on February 8, 2013

http://amp2012.com/2013/02/08/gildan-activewear-inc/

Francesca’s Holdings Corporation Buy Target $ 30

Francesca

Francesca (Photo credit: Paolo Neoz)

Nov. 19

Francesca’s Holdings Corporation

FRAN : NASDAQ : US$23.95
BUY Target: US$30.00

COMPANY DESCRIPTION:
Francesca’s Holdings Corporation is the holding company for specialty retailer Francesca’s Collections. Through a national chain of over 350 retail boutiques and an ecommerce web site, Francesca’s sells apparel, jewelry, accessories, and gift items with an assortment tailored to its core 18-35 year-old, fashion-conscious female customer .

Investment recommendation
We believe FRAN’s unique business model positions the company to profitably expand its store base. A low-cost, small-footprint store model has translated to EBIT margins in the mid-20% range and one of the specialty retail group’s highest ROIC at around 30%. We expect FRAN’s boutique feel, driven by a broad and trend-right product assortment, should continue to resonate with customers as the company expands square footage at the highest annual rate among all of the companies in our coverage universe.

We estimate double-digit SSS growth will persist in FY13, and we are modeling for EPS of $1.29.

Investment highlights
 We forecast annual square footage growth of 18% over the next five years. By comparison, the specialty retail group average is +6%.
 FRAN’s growth potential warrants a premium to the specialty apparel peer group. We estimate sales and EPS will grow at annual rates of 29% and 39%, respectively, over the next three years versus the group averages of 8% and 19%.

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by jackbassteam on November 19, 2012  •  Permalink
Posted in Fashion, Retail Stores
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Posted by jackbassteam on November 19, 2012

http://amp2012.com/2012/11/19/francescas-holdings-corporation-buy-target-30/

Steven Madden, Ltd. BUY Target $ 53

Description unavailable

Description unavailable (Photo credit: Raleene)

Steven Madden, Ltd.

Oct. 31

 

SHOO : NASDAQ : US$42.83  BUY Target: US$53.00

COMPANY DESCRIPTION:

Steven Madden, Ltd., together with its subsidiaries, designs, sources, markets and sells fashion-forward footwear for women, men and children. The company was founded in 1990 and is headquartered in Long Island City, New York. SHOO has a portfolio of brands that reaches globally among all economic tiers. SHOO offers products through wholesale partners, an e-commerce platform and its own retail stores

Investment recommendation

We are anticipating a solid earnings report from SHOO when it reports on Thursday, November 1 BMO. We believe our EPS estimate of $0.87 (consensus of $0.90) could prove conservative by ~4c based on stronger wholesale sales and gross margin. We believe above-plan sell-through of booties drove solid footwear sales while handbags propelled accessories growth. Moreover, the studded trend is pushing ASPs higher. Retail comps (7% est.) likely also benefitted from similar trends; however, we believe that like with most retailers, traffic slowed in late September.

While we expect commentary to be relatively reserved on the conference call due to choppy traffic trends and Hurricane Sandy, we remain positive on SHOO’s prospects and thus reiterate our BUY.

Investment highlights  

Growth may suprise to the upside driven by solid sales of booties, casuals (Superga), and anything with studs. According to our checks, early fall boot reads have been better than plan, particularly short shaft boots (e.g. Troopa). In addition, we expect the strength in handbag sales to continue and drive wholesale accessories growth of 20%+.   Gross margin expansion in Q3 as the mix impact of TGT’s private label business lessens and direct sourcing efforts manifest. We are modeling margin expansion of ~80bps.

Valuation

We arrive at our $53 target by applying a blended average of 15x 2013 P/E, 9x EV/EBITDA, and DCF.

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by jackbassteam on October 31, 2012  •  Permalink
Posted in Fashion, Retail Stores
Tagged , , , , , , ,

Posted by jackbassteam on October 31, 2012

http://amp2012.com/2012/10/31/steven-madden-ltd-buy-target-53/

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