Ten Apparel Retail Stocks Worth a Look Now
The earnings spotlight turns to retail this coming week with quarterly reports due from the likes of Kohl's (NYSE: KSS), Macy's (NYSE: M) and Nordstrom (NYSE: JWN). Analysts are looking for earnings growth from these three. And investors may take some comfort from the fact that, last week, many retailers reported strong same-store sales in July.
Investors seeking opportunities in the sector might take a look at the following ten apparel retailers. These dividend-paying stocks are still trading within sight of their 52-week highs despite last week's pullbacks along with the broader markets.
Abercrombie & Fitch (NYSE: ANF): This Ohio-based retailer reported strong same-store sales in July, boosted by strength at its surf-themed Hollister chain. The company has also seen strong international sales, including at its new flagship store in Paris. Its dividend yield is 1.0% and the market cap is $6.2 billion. The share price is more than 82% higher than a year ago. The stock has outperformed competitor The Gap (NYSE: GPS) and the broader markets year to date.
Bebe Stores (NASDAQ: BEBE): Based in California and sporting a market cap of $547.2 million, this woman's apparel retailer reported strong same-store sales growth for the most recent quarter. The company has been buying back shares since 2005. It has a 1.5% dividend yield and a long-term EPS growth forecast of 27.5%. The share price popped 15% in July following the earnings report but has lost most of that gain since. Still, the stock is up about 10% year to date.
Buckle (NYSE: BKE): This Nebraska-based retailer saw strong same-store sales in July as well. The company also opened four new stores in July, including in St. Louis and Jacksonville, Florida. The $1.9 billion market cap company has a dividend yield of 2.0%. Its P/E ratio is less than the industry average. The share price is about 65% higher than a year ago, and the stock has outperformed competitors American Eagle Outfitters (NYSE: AEO) and Gap year to date.
Chico's FAS (NYSE: CHS): This specialty retailer is expected to post 20.2% earnings growth and 19.9% revenue growth when it reports second-quarter results August 17. Its market cap is $2.3 billion and the dividend yield is 1.5%. The long-term EPS growth forecast is 16.3%. The share price has risen nearly 47% over the past year. Year to date, the stock has outperformed competitors Ann Taylor (NYSE: ANN) and Talbots (NYSE: TLB), as well as the broader markets.
Finish Line (NASDAQ: FINL): This Indianapolis-based sportswear purveyor announced in July that it would buy back 5 million shares, about 9% of those outstanding. The company also has said it plans to open five to ten new stores this year. It has a return on equity of 14.6% and a 1.0% dividend yield. The share price is up about 46% from a year ago. Year to date, the stock has outperformed the broader markets, as well as competitor Foot Locker.
Foot Locker (NYSE: FL): Analysts expect per-share earnings to be up 63.6% year-over-year, with revenue up 8%, when this New York-based company reports later this month. The long-term EPS growth forecast is 10.8%. It has a dividend yield of 3.6% and a market cap of $2.9 billion. The share price is more than 44% higher year over year. The stock has outperformed the broader markets and competitor Dick's Sporting Goods (NYSE: DKS) over that period.
Hot Topic (NASDAQ: HOTT): This was one of the strongest performers in the teen sector with July same-store revenue much higher than analysts expected. Hot Topic also raised its second quarter outlook. It has a dividend yield of 3.9% and a long-term EPS growth forecast of 22.0%. Shares are trading more than 50% higher than a year ago. The stock has outperformed competitors such as Zumiez (NASDAQ: ZUMZ) and the broader markets year to date.
Limited Brands (NYSE: LTD): This retailer has a market cap of $10.7 billion and is headquartered in Columbus, Ohio. It declared its 147th consecutive quarterly dividend last week, and it also saw strong same-store sales growth in July. The dividend yield is 2.3% and the return on equity is 55.2%. The share price has grown nearly 36% in the past year. The stock has outperformed competitors Gap and Macy's, as well as the broader markets, year to date.
Men's Wearhouse (NYSE: MW): This Houston-based purveyor of men's suits has a market cap of $1.5 billion. For a second quarter in which a new chief executive took up the reins, the company is expected to post 20.2% earnings growth and 19.9% revenue growth. It has a dividend yield of 1.7%. Analysts on average recommend buying the stock. Shares are trading nearly 59% higher than a year ago. The stock has outperformed competitor Jos. A. Bank (NASDAQ: JOSB) over that time.
Ross Stores (NASDAQ: ROST): July same-store sales were also up for this discount retailer, and it raised its guidance for the second quarter. The company has a market cap of $8.6 billion and a dividend yield of 1.2%. It also has a healthy return on equity of 44.4%. The long-term EPS growth forecast is 12.7%. The share price has grown more than 48% in the past year, outperforming competitors such as TJX Companies (NYSE: TJX) and the broader markets.
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