JCG to Post Over 20% EPS Growth Through 2011
Analyst Kimberly Greenberger of Citi reiterated her “buy” rating for J Crew Group Inc (NYSE: JCG), while raising her estimates for the company. The target price has been raised from $46 to $49.
JCG reported Q3 EPS at $0.67, beating the estimates, the consensus and the guidance. Higher-than-expected gross margins, lower SG&A and diluted shares helped JCG’s earnings to exceed the expectations. Citi recommends JCG based on accelerating EPS growth, improving product offerings, stabilizing retail environment, robust fashion trends, easier comparisons, above average square footage growth, superior merchandising team and disciplined inventory management. All these factors are expected to drive strong margin expansion and more than 20% EPS growth through 2011, Citi says.
Citi has raised its EPS estimates for 2010 from $2.05 to $2.10.
