4 Apparel Retailers That Came Dressed To Impress At ICR Conference

The nineteenth ICR conference is underway at the Grand Lakes Resort in Orlando. The event, which began Monday and will end Wednesday, is a forum for exchanging insights into current consumer and economic trends.

Wunderlich’s Eric Beder put out his thoughts on four apparel retailers that presented at the conference.

American Eagle Outfitters AEO: Buy, $22 Price Target

Beder believes American Eagle has a focused plan to leverage its leadership positions in denim and its rising positions at Aerie and Tailgate to drive higher margins and returns. The analyst also noted that American Eagle is best positioned to navigate the treacherous teen waters.

G-III Apparel Group, Ltd. GIII: Buy, $33 PT

Beder believes the G-III is setting the stage for a comeback with return of cold weather boosting outerwear sales and the company focusing on DKNY "white" label of product for key department stores for fall 2017. The retailer is also aggressively closing doors and creating the potential for a return to profitability in the outlets.

Oxford Industries Inc OXM: Buy, $80 PT

Oxford reminded investors that January is an important month for the company, driven by the start of the spring season wholesale shipments and full price resort season selling.

“We continue to view Oxford Industries as one of the key winners in the apparel space, with a stable of strong lifestyle brands and the ability to raise prices and drive strong returns,” Beder wrote in a note.

Sequential Brands Group Inc SQBG: Buy, $18 PT

Beder believes Sequential Brands will regain the credibility of the Street with management focusing more on organic growth and debt paydown in 2017. The company expects high single-digit revenue growth in 2017 and to use the expected $30 million in free cash flow in FY 2017 to reduce debt.

The analyst hopes these steps would likely alleviate “what we view as overblown fears on the Street over leverage.”