Lululemon Athletica inc. (LULU), DSW Inc. (DSW), The Wet Seal, Inc. (WTSL): Are There Still Opportunities in Apparel?

Furthermore, the company has been cutting costs by reducing its workforce and closing underperforming stores. Savings are expected at over $3 million in 2013. Meanwhile, its balance sheet remains strong with over $110 million in cash and investments and zero debt. In addition to the cost reductions, The Wet Seal, Inc. (NASDAQ:WTSL) recently announced a $25 million share-repurchase program that will return value to investors. Following several insider purchases, I believe that this is the time to purchase this stock and hold it for some time.

Bottom line

Although none of the companies above has dug a moat for itself, both The Wet Seal, Inc. (NASDAQ:WTSL) and Lululemon Athletica inc. (NASDAQ:LULU) offer compelling growth prospects for the years to come. While still susceptible to increased competition and new entrants, these companies have developed a certain degree of customer loyalty and a strong brand name that should continue to attract customers for a few more years, at least.

Victor Selva has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article Are There Still Opportunities in Apparel? originally appeared on Fool.com.

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