If Only Johnson & Johnson (JNJ) Could Bottle This and Sell It

Nonetheless, the company’s top- and bottom-line results increased in the first quarter, and strong tuxedo sales (due to a shift in prom season timing) led to higher gross margins in the retail and corporate segments. The company has a $200 million share-buyback program in place and has access to up to $450 million in a credit facility.

Bottom line

J&J was thrust into a situation it didn’t create and it responded with strength and accountability. Good PR matters, and it can make all the difference in the way that a brand is perceived for years to come, as J&J proved several decades ago. Maybe more companies should hire Burson-Marstellar, the PR firm that guided J&J through its dark days in the eighties.

Lululemon and Men’s Wearhouse are losing the PR battle. But Lululemon has growth on the horizon, and I would consider the stock once its management team is secure. As for Men’s Wearhouse, there’s lingering animosity tied to that situation plus economic headwinds. I would stay away for now.

Involved in everything from baby powder to biotech, Johnson & Johnson (NYSE:JNJ)’s critics are convinced that the company is spread way too thin. If you want to know if J&J is nothing but a bloated corporate whale — or a well-diversified giant that’s perfect for your portfolio — check out The Fool’s new premium report outlining the Johnson & Johnson story in terms that any investor can understand. Claim your copy by clicking here now.

Gerelyn Terzo has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson and Lululemon Athletica. The Motley Fool owns shares of Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

The article If Only Johnson & Johnson Could Bottle This and Sell It originally appeared on Fool.com and is written by Gerelyn Terzo.

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