Articles for J.Crew Group

Abercrombie Investor Day Adds Some Zip to Stock

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Thursday, April 28th, 2011 by

Abercrombie & Fitch (NYSE:ANF) at its investor day earlier this month raised its revenue and profit forecasts considerably, which helped lift shares. Our price estimate for Abercrombie & Fitch stock is $60.44, which is around 15% below the current market price. We estimate that Abercrombie & Fitch stores contribute around 29% to the company’s stock price with Hollister stores contributing another 25%. Abercrombie & Fitch competes with other specialty retailers like Aeropostale (NYSE:ARO), Gap (NYSE:GPS) and Urban Outfitters (NASDAQ:URBN).

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3 Key Trends For Ann Taylor

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Monday, April 4th, 2011 by

The online sales of adult apparel in the U.S. grew almost 10% in 2010 far outstripping the 1.9% growth in the overall apparel market, according to research firm NPD’s February 2011 report on the US apparel market. This is great news for Ann Inc. (NYSE:ANN) as well as retailers Aeropostale (NYSE:ARO), American Eagle Outfitters (NYSE:AEO), J.Crew Group (NYSE:JCG), and Limited Brands (NYSE:LTD).

We currently have a $28.46 Trefis price estimate for Ann Taylor, which is about in line with the current market price. Below are the 3 key trends that we believe have significant implications to ANN’s business.

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Looking at J. Crew’s Business Value as Buyout Closes

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Monday, March 14th, 2011 by

J.Crew Group (NYSE:JCG) is a specialty retailer selling women’s, men’s and children’s apparel and accessories under the J.Crew, crewcuts and Madewell brands. It competes with Aeropostale (NYSE:ARO), American Eagle Outfitters Inc. (NYSE:AEO), AnnTaylor (NYSE:ANN), and Gap Inc. (NYSE:GPS). We currently have a Trefis price estimate of around $42.35 for J.Crew Group’s stock, which is roughly in line with the current market price.

We estimate that J. Crew in-store women’s apparel constitutes around 34% of our price estimate and internet & catalog orders adds another 32%. The crewcuts & Madewell stores contribute another 11% and J. Crew in-store men’s apparel another 8%.

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Abercrombie & Fitch Sees Upside From Internet & Catalog Orders

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Wednesday, January 26th, 2011 by

Abercrombie & Fitch (NYSE:ANF) is a leading apparel company that primarily targets teens and young adults in the US. It competes with retailers like Aeropostale (NYSE:ARO), Gap (NYSE:GPS), J.Crew Group (NYSE:JCG) and Urban Outfitters (NASDAQ:URBN), and owns apparel brands such as A&F, Hollister and Gilly Hicks.

Our price estimate for Abercrombie & Fitch stock is $53.34, roughly 6% above market price. We estimate that A&F Stores account for 37% of the company’s stock value compared to 29% for Hollister stores. The Internet & Catalog Orders contribute around 19%.

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Holiday Sales Data Could Bring Cheer for Gap’s Stock

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Friday, January 7th, 2011 by

Gap (NYSE: GPS), a leading global specialty retailer offering clothing, accessories and personal care products, primarily competes with stores like Aeropostale (NYSE:ARO), Abercrombie & Fitch (NYSE:ANF) and American Eagle Outfitters, (NYSE:AEO).

The Gap and Old Navy stores each constitute around 27% of our $33.87 price estimate for Gap’s stock.

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A&F’s Continued Momentum Could Raise Stock Value

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Monday, December 27th, 2010 by

Abercrombie & Fitch (NYSE:ANF) is a leading apparel company that primarily targets teens and young adults in the US. It competes with retailers like Aeropostale (NYSE:ARO), Gap (NYSE:GPS), J.Crew Group (NYSE:JCG) and Urban Outfitters (NASDAQ:URBN), and owns apparel brands such as A&F, Hollister and Gilly Hicks.

Abercrombie & Fitch (A&F) recently reported Q3 2010 earnings that demonstrated improvements in its sales metrics and profit margins. We previously discussed the potential upside from improving profit margin and revenue per square foot at the company’s namesake brand stores. (See Abercrombie & Fitch Sales, Profitability Lift Outlook)

Our price estimate for Abercrombie & Fitch stock is $53.54, roughly 6% below market price. We estimate that A&F Stores account for 37% of the company’s stock value compared to 29% for Hollister stores.

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Limited Brands Freshens Margin Outlook

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Thursday, December 23rd, 2010 by

Limited Brands (NYSE:LTD), a specialty apparel retailer focused on lingerie, beauty and personal care products, competes with retailers like Abercrombie & Fitch (NYSE:ANF), American Eagle (NYSE:AEO), AnnTaylor (NYSE:ANN), Gap (NYSE:GPS), and J.Crew Group (NYSE:JCG). Some of its popular brands include Victoria’s Secret in the lingerie business and Bath & Body Works in the personal care segment.

Despite fewer promotional discounts than offered in 2009, Limited reported a 10% year-over-year increase in comparable store sales during Q3 2010, a trend that continued into November. As a result, Limited Brands’ stock price increased by nearly 10% (to $35). It was after Limited Brands’ special dividend of $3 that the price fell to its current level of around $31.

We currently have a $30.63 price estimate for Limited Brands’ stock, in line with current market price.  We estimate Victoria’s Secret brands is the largest value driver for Limited Brands, contributing more than 52% of company value while Bath & Body Works contributes nearly 34% to the stock price. We see an upside to Limited Brands’ stock from Bath & Body Works stores in the scenario discussed below.

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Could Gap Store Profit Margins Continue Growth Pace?

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Wednesday, December 15th, 2010 by

Gap’s (NYSE:GPS) profit margins at its namesake brand stores have been increasing since 2007, driven by successful control of inventory and average unit cost (AUC), leading to higher merchandise margins. Going forward, the overall lower demand in the apparel market caused by a weak economy could result in slower margin growth.

Gap competes with other specialty retailers like Aeropostale (NYSE:ARO), Abercrombie & Fitch (NYSE:ANF), J.Crew Group (NYSE:JCG) and Urban Outfitters (NASDAQ:URBN).

We expect that Gap’s EBITDA margin will increase gradually to 17% by 2016, with promotional activity providing a potential headwind. In comparison, the Trefis community anticipates that margins could reach 19.5% by the end of our forecast period, suggesting an upside of 4% to our price estimate for Gap.

We currently have a Trefis price estimate of $33.87 for Gap Inc.’s stock, well ahead of market value.

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Could Gap’s International Expansion Stall?

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Tuesday, December 14th, 2010 by

Gap (NYSE: GPS), a leading global specialty retailer offering clothing, accessories and personal care products, primarily competes with stores like Aeropostale (NYSE:ARO), Abercrombie & Fitch (NYSE:ANF), American Eagle Outfitters, (NYSE:AEO), J.Crew Group (NYSE:JCG) and Urban Outfitters (NASDAQ:URBN).

We estimate that the Gap stores contribute around 28% to the $33.87 Trefis price estimate for Gap’s stock.

We Remain Bullish…

The company is executing on its plan to enter 2 of top 5 apparel markets in the world, Italy and China. Gap has opened a flagship store in Milan (Italy) and will be opening another in Rome. Gap has also opened a flagship store in Shanghai (China) with plans to open a second there as well as two in Beijing.

We anticipate that the opening of new stores in Italy and China, as well as further  expansion into emerging markets like Latin America and Asia where demand for branded apparel is growing rapidly, will drive international store sales.

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Is Victoria’s Secret the Key to Limited Brands Upside?

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Friday, December 3rd, 2010 by

Limited Brands (NYSE:LTD), a specialty apparel retailer focused on lingerie, beauty and personal care products, competes with retailers like Abercrombie & Fitch (NYSE:ANF), American Eagle (NYSE:AEO), AnnTaylor (NYSE:ANN), Gap (NYSE:GPS), and J.Crew Group (NYSE:JCG). Some of its popular brands include Victoria’s Secret in the lingerie business and Bath & Body Works in the personal care segment.

Despite fewer promotional discounts than offered in 2009, Limited reported a 10% year-over-year increase in comparable store sales during Q3 2010, a trend that continued into November.

Part of the surge stems from the company’s Victoria’s Secret brand, which is reportedly generating strong bra sales during early holiday shopping. The success is driven in part by high demand for Miraculous bras, a product reintroduced in November after strong sales towards the end of 2009. The company also reported a high conversion rate of store visitation to purchases.

Victoria’s Secret US stores constitute roughly 32% of our estimated $30.63 value for Limited Brands stock.

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J.Crew Group : All Articles