Piper Jaffray Maintains Favorable Outlook On Fast Fashion Retailers (BODY, WTSLA)
March 24, 2011 8:56 AM
Piper Jaffray is maintaining its favorable outlook on fast fashion retailers as the appeal of trend-right fashions at affordable prices continues to resonate with customers.
“We believe growing fast fashion relevance is supported by the 10% increase in the number of fast fashion store openings in FY12, the ongoing shift in the consumer's mindset from quality to value, the popularity of mixing high end and low end brands, a challenging economic environment, and a broader fast fashion merchandise assortment that is capturing a broader age range,” Piper Jaffray writes.
“Two fast fashion companies report FQ4 earnings after the close: Body Central Corp. (NASDAQ: BODY) and Wet Seal Inc. (NASDAQ: WTSLA). We believe sales trends remain strong at both concepts, but prefer BODY given a wider demographic audience and significant square footage growth.”
Body Central closed Wednesday at $18.04; Wet Seal closed at $3.62.
