Dicks Sporting Goods Inc (DKS), Sears Hometown and Outlet Stores Inc (SHOS), Urban Outfitters, Inc. (URBN): 3 Unfairly Punished Retail Picks

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2013 won’t be Sears Hometown and Outlet Stores Inc (NASDAQ:SHOS) best year by far, but look further down the line and things brighten up. Shares are discounted now.

Late diver
Trendy clothier Urban Outfitters, Inc. (NASDAQ:URBN) actually made it through its earnings release relatively strong, but a recently released sales update has the stock down double digits. Same-store sales for the current quarter appear to be in the mid-single digits, and the market wanted more.

Urban’s namesake store is set to grow modestly in the near term, with a slightly better outlook for the Anthropologie brand and strong double-digit growth from its smaller-format, premium-priced Free People stores. As mentioned in Barron’s, management is committed to cutting down on inventory levels and improving speed to market — a strategy that cuts down on the number of discounted items and other big-time markdowns.

Urban Outfitters is now trading back at pre-earnings levels and is a compelling long-term retail play.

The article 3 Unfairly Punished Retail Picks originally appeared on Fool.com and is written by Michael Lewis.

Fool contributor Michael Lewis owns shares of Sears Hometown and Outlet Stores (NASDAQ:SHOS). The Motley Fool recommends Amazon.com (NASDAQ:AMZN) and Urban Outfitters. It owns shares of Amazon.com and Sears Hometown and Outlet Stores.

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