Abercrombie & Fitch Co. (ANF), Urban Outfitters, Inc. (URBN): Crazy Like A Fox Retail Stocks

Page 1 of 2

Moms only have to wait three more weeks until the dancing in the streets officially commences with the kids finally out of the house. The crazy back to school season is in full swing for retailers, and its importance is second only to the holidays as a make-or-break period for these companies.

Crazy busy

Abercrombie & Fitch Co. (NYSE:ANF)One store that was surprisingly busy at the mall last weekend was Abercrombie & Fitch Co. (NYSE:ANF), with a long line at the checkout counter contrasting sharply with other retailers. At a PEG of .98 it is fairly valued and offers a 1.50% yield. It operates 1,053 stores representing four brands: Abercrombie & Fitch Co. (NYSE:ANF), Gilly Hicks, abercrombie kids, and Hollister, with roughly a third of these located in international markets.

CEO Michael Jefferies has been the lightning rod of adverse press this year with well publicized rehashings of his exclusionary brand philosophy and details of his strange fiats. But with improving numbers he may end up with the accolade of “crazy like a fox” rather than “how weird is this guy.”

The company presented a compelling picture of improving profitability at the Jefferies Global Consumer Conference in June, with gross profit as a percentage of Q1 sales coming in at 65.9% in 2013 to 58.7% in Q1 2012. Net loss per basic and diluted share also decreased from $0.25 to $0.09.

This is a very competitive space, and Abercrombie & Fitch Co. (NYSE:ANF) competes against Aeropostale, The LTD‘s Victoria’s Secret PINK collection, Gap, The Buckle, and Urban Outfitters, Inc. (NASDAQ:URBN), to name a few. Failure is not an option with rival American Eagle diving 14% after disappointing.

Abercrombie & Fitch Co. (NYSE:ANF) has made considerable progress on each brand’s websites with direct to consumer representing 16% of total company sales and its database from social media, websites, mobile, and e-mail has over 10 million contacts. The company just launched an iPhone app for Abercrombie & Fitch Co. (NYSE:ANF) stores in its ongoing mobile commerce drive.

A beautiful call

Another company associated with a famous eccentric is Steven Madden, Ltd. (NASDAQ:SHOO). In 2010 the company bought out bankrupt designer Betsey Johnson, famous for her funky and eclectic designs and for turning cartwheels on the catwalk (she’s over 70 now).

The purchase of this brand and possibly more successful purchases like it helped prompt Goldman Sachs to upgrade the name from a Sell to a Buy with a $69 price target on Aug. 5, sending the stock up almost 5% intra-day to its all time high of $55.99.

Their ticker may read SHOO, but Steven Madden, Ltd. (NASDAQ:SHOO) is branching out from shoes and accessories using Betsey Johnson as a platform, launching a fragrance, luggage line, and dresses this year.  CEO Edward Rosenfeld said, “We feel Betsey should be generating between $15 million and $20 million of royalty income net expenses over the next few years.” Betsey is also going global with stores opening in China.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!