GPS - The Gap, Inc.
26.03 0.00 (0.00%)
After hours: 5:15PM EDT
| Previous Close | 25.88 |
| Open | 25.86 |
| Bid | 25.56 x 800 |
| Ask | 26.00 x 3200 |
| Day's Range | 25.86 - 26.37 |
| 52 Week Range | 24.25 - 34.21 |
| Volume | 3,851,496 |
| Avg. Volume | 5,466,335 |
| Market Cap | 9.866B |
| Beta (3Y Monthly) | 0.40 |
| PE Ratio (TTM) | 10.05 |
| EPS (TTM) | 2.59 |
| Earnings Date | May 22, 2019 - May 28, 2019 |
| Forward Dividend & Yield | 0.97 (3.71%) |
| Ex-Dividend Date | 2019-04-09 |
| 1y Target Est | 30.89 |
- InvestorPlace•2 days ago
Prime Stylist Could Be a Catalyst for Amazon Stock
Amazon.com (NASDAQ: AMZN) has already completely disrupted the traditional retail space, helping Amazon stock to rise tremendously. Amazon's share of total U.S. retail sales hit 5% last year. In 2019, Amazon's share of all online U.S. retail sales will reach 47% percent, according to eMarketer.Source: Shutterstock Despite Amazon's unprecedented retail success, its new Prime Stylist service suggests Amazon is looking to take even more business away from physical retailers. If AMZN is able to take a bigger piece of the retail pie, that will be very good news for Amazon stock. * 10 High-Yielding Dividend Stocks That Won't Wilt What Is Prime Stylist?Prime Stylist is Amazon's new offering which is supposed to provide personalized shopping assistance. It's geared primarily for Amazon's female online shoppers. Users fill out a personalized shopping profile by answering questions about clothing size, preferred look, brand preferences and budget. From there, Amazon's staff of professional stylists select outfits from Amazon's massive trove of apparel offerings.InvestorPlace - Stock Market News, Stock Advice & Trading TipsCustomers are allowed to view and approve the selections before they are shipped. Once customers receive the selections, they are given seven days to try on the outfits and return them if they are not satisfied. AMZN will presumably be relying on its human stylists, but will likely also incorporate customer data and artificial intelligence.At this point, Prime Stylist is still in the testing phase. However, following the launch of Prime Wardrobe last year, AMZN seems to be very serious about clothing. Why Prime Stylist Matters for Amazon StockAmazon has already gone toe-to-toe with brick-and-mortar mall retailers and won on pricing, convenience and selection. The only area in which traditional clothing retailers still have the upper hand is personal touch. Many shoppers like to receive personalized fashion recommendations. They like to know that another human being thinks their outfit looks good, especially if that person is a professional stylist.Many shoppers also enjoy the process of trying on apparel before buying it. That shopping experience has traditionally been available only in in-store dressing rooms. However, AMZN is actively encouraging Prime Wardrobe and Prime Stylist shoppers to try on outfits at home. The company is making returns free and easy in an effort to change shoppers' mindsets about the traditional shopping experience.Wall Street analysts are already gushing about the long-term potential of Prime Stylist."For Amazon apparel broadly, we think that the site has been lacking is curation/merchandising," KeyBanc analyst Edward Yruma says. "We think Amazon has recognized this and has improved photography and storytelling, and Prime Stylist can be another strong step to enhance its capabilities," he added. The Impact on Amazon StockPrime Stylist is just in its infancy, and investors shouldn't expect it to make a huge impact on Amazon stock right away. However, longtime owners of AMZN stock know Prime Stylist is right out of the Amazon playbook. Prime Stylist doesn't need to be a big money-maker for Amazon. Amazon's e-commerce and cloud business are firing on all cylinders, so it can be patient.AMZN is slowly shifting the way shoppers think about clothing shopping by subtly challenging the traditional model. It's the same approach Amazon is taking to smart speakers with its Echo device.Customers who buy these new products start out thinking, "Oh, I wanna try out this crazy new thing." Soon, they think, "Wow, this cool new thing isn't really that weird." Finally, they say, "Jeez, I can't remember life before this new thing."Yruma specifically mentioned Gap (NYSE: GPS), Nordstrom (NYSE: JWN), Stitch Fix (NASDAQ: SFIX) and Urban Outfitters (NYSE: URBN) as potential Prime Stylist victims.Amazon Stylist may not be a big deal for Amazon stock in the near-term. However, it's just one more way that the company is suffocating traditional retailers. That strategy could end up being huge for Amazon stock in the long-term.AMZN has already captured nearly half of all online retail sales. If Jeff Bezos has his way, Amazon's share may reach half of all retail sales.As of this writing, Wayne Duggan did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 High-Yielding Dividend Stocks That Won't Wilt * 4 Energy Stocks Soaring as Trump Tightens on Iran * 7 Tech Stocks With Too Much Risk, Not Enough Upside Compare Brokers The post Prime Stylist Could Be a Catalyst for Amazon Stock appeared first on InvestorPlace.
- Business Wire•3 days ago
Banana Republic and Old Navy Announce New Goals to Accelerate Sustainable Product Offerings
In honor of Earth Day, Gap Inc. (GPS) today unveiled new commitments from Banana Republic and Old Navy to accelerate the company’s use of more sustainable materials in apparel production and reduce the environmental impacts of product manufacturing. Today’s announcement marks the latest step in Gap Inc.’s journey to integrate more sustainable product innovation and technology across its portfolio, and builds on 2017 commitments made by the company’s namesake brand Gap and Athleta.
- Investopedia•6 days ago
Comparing Amazon's vs. Alibaba's Business Models
Learn how Alibaba and Amazon compare in terms of each company's applied business model and understand the markets each company aims to reach.
- PR Newswire•7 days ago
60 Percent of Athleta's Materials Are Now Made From Sustainable Fibers
SAN FRANCISCO, April 18, 2019 /PRNewswire/ -- One year after becoming a certified B Corporation, Athleta continues as a leader in sustainable performance apparel, sharing in its April catalog that 60 percent of its materials are now made with sustainable fibers. Sustainable materials have also carried into Athleta Girls, reaching 69 percent of the styles in the upcoming Summer collection. Athleta set its first public sustainability goals in 2017, with four key targets centered on reducing its impact on the planet and supporting the women around the world who make its clothes.
- Schaeffer's Investment Research•8 days ago
2 Retail Stocks for Short-Term Bulls
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- InvestorPlace•9 days ago
10 S&P 500 Stocks to Weather the Earnings Storm
Earnings season is underway, and while it's been far from disastrous, it's not been a cause for enormous celebration either. Goldman Sachs (NYSE:GS), J B Hunt Transport Services (NASDAQ:JBHT) and Lennar (NYSE:LEN) all three missed estimates of one form or another. They're fairly high-profile names from a broad spectrum of industries that may portend more disappointments.Not every stock is hanging by a thread though. There are still stocks to buy that are well-positioned for market-beating growth driven by solid earnings growth. Granted, not all of these companies are media darlings or fan favorites, but that's ok. Sometimes it's the lesser-followed tickers that end up being most rewarding. * 7 Stocks That Can Outperform for Years With that as the backdrop, here's a rundown of the top then S&P 500 stocks that offer the best chance of sidestepping an earnings-driven headwind. Some may be a bit off of the beaten path, but each of them bring better than average upside potential to the table.InvestorPlace - Stock Market News, Stock Advice & Trading Tips United Parcel Service (UPS)To be clear, the first quarter profit UPS (NYSE:UPS) is expected to report just a few days from now should be lower than the year-ago bottom line. Indeed, the full-year's earnings are projected to drop as well. Between rising fuel costs, Amazon.com (NASDAQ:AMZN) starting to handle more of its own delivery work and the perception of a general economic slowdown crimping demand for shipping services, investors are understandably concerned.Those same investors, however, may have overshot their target. The pros are calling for an earnings rebound next year on the same steady sales growth UPS has consistently driven. But, at a forward-looking P/E of 13.8, UPS stock is a bargain.The clincher: Built on recently-achieved efficiencies, UPS is about to launch a major pricing overhaul that customers and non-customers should respond to. Rockwell Automation (ROK)Investors looking for bargain-priced S&P 500 stocks won't think much of Rockwell Automation (NYSE:ROK). It's anything but cheap, looking forward or looking backward.ROK stock's never been particularly cheap though. And it doesn't have to be. Regardless of ratios, the market may be underestimating the company's future. * 7 Dental Stocks to Buy That Will Make You Smile This year could prove to be pivotal one for industrial manufacturing. 5G connectivity is officially here, and factory owners are finally starting to embrace the upside of automation. It's a trend that plays right into the hand Rockwell Automation has been holding for a while now. ROK specializes in the melding of technology, artificial intelligence, manufacturing and software. Any sort of improvement in the global trade landscape could be just the nudge Rockwell needs. Hewlett Packard Enterprise (HPE)HP Enterprise (NYSE:HPE) had a pretty rough 2017, and never really worked its way out of that rut. It's not especially well-deserved weakness though.Hewlett Packard Enterprise is, of course, the business-oriented half of the split the old HP went through in late-2015. The stock got off to a good start, but investors largely viewed the institutional half of the company as missing out on the explosion of cloud computing.That's not actually been the case though. HPE is arguably a pace-setter in hybrid cloud, with the company recently announcing partnerships with Alphabet (NASDAQ:GOOGL) division Google to simplify the use of hybrid cloud solutions. HPE stock is also priced at a very affordable 9.5x forward earnings. Kellogg Company (K)Don't look now, but Kellogg (NYSE:K) shares may be on the mend after being rocked in 2018.Granted, most food stocks are doing the same. They all took big hits in 2018 on rising delivery costs as well as rising commodity costs, causing a relatively big hit to relatively thin margins. Shipping costs are still frothy, but the industry has at least gotten a grip on its inefficiencies. For Kellogg, that means shedding established brands including Keebler and Famous Amos. * 3 Solar Stocks to Buy for a New Day in Solar Energy More important, the market is responding bullishly. After hitting bottom in March, K stock has broken above a key falling resistance line and just this week has pushed its way above the 100-day moving average line. Gap (GPS)Yes, the so-called retail apocalypse is still in full swing, and yes, the trendy apparel sliver of the industry has been hit especially hard. Gap (NYSE:GPS) hasn't been an exception to that norm.Gap, however, has also been hit unfairly hard.It was brutalized in 2015 when the scales really started to tip in favor of other fashion looks, and just when it looked like the worst was over in 2017, the bears growled again in 2018. The Gap, along with its other brands like Old Navy, Banana Republic and Janie and Jack, just aren't the same draw they used to me when mall-shopping was in its prime and consumers cared about sporting a certain look.Nevertheless, GPS stock appears to have made a hard bottom at $24.00, and is not testing the waters of another rebound attempt. A better-paced move above the $200-day moving average line at $26.90 could be just the catalyst the bulls need. Intel (INTC)Yes, rival Advanced Micro Devices (NASDAQ:AMD) mostly caught Intel (NASDAQ:INTC) two years ago when it unveiled its Ryzen processor that matched up with Intel's CPUs at a fraction of the cost. In the meantime, the discovery of a couple different security flaws in Intel's chips dented the computing icon's reputation.Rumors of Intel's death, however, have been greatly exaggerated.Reality: Yes, Intel got lazy, and sloppy, assuming it couldn't be dethroned. It responded to competitive threats and gaffes with full force though, and the 30% gain logged since October of last year speaks volumes about the market's perception of that effort. * 5 Fast Food Stocks That Are Cooking With Fire As big as that gain is though, INTC stock is still cheap relative to most other S&P 500 stocks, priced at only 12 times its projected 2020 earnings. Omnicom Group (OMC)Omnicom Group (NYSE:OMC), for the unfamiliar, is a media, marketing and communications company. Specifically, Omnicom has mastered the art and science of combining online and offline efforts to maximize client sales. It's not easy.More important, it's a service that will only see demand grow going forward. While things should be slow this year for Omnicom, the company is expected to get back on a growth track next year.The shape of the OMC chart suggests investors are quietly maneuvering in anticipation of a breakout. They may be unconsciously planning such a breakout, in fact. The move above a couple of different technical ceilings near $78 has been a little overzealous and leaves the stock ripe for a small pullback. The bulls, however, may have just tipped their very bullish hand. Colgate-Palmolive (CL)Last year was an especially tough one for Colgate-Palmolive (NYSE:CL), and by extension, for its shareholders. From high to low, CL stock fell a total of 24%, for a myriad of reasons. Broadly speaking though, its products and brands simply fell out of favor as consumers opted for alternatives.Some observers don't expect 2019 to be any better, calling for more slowing of growth. * 7 Stocks That Can Outperform for Years The overall market, however, thinks differently. After making a double bottom last year around $57, CL stock has managed to fight its way above September's high around $68.30. And, there's still room to keep running before the early 2018 peak is challenged. Twitter (TWTR)There was a time not that long ago when it wasn't clear Twitter (NYSE:TWTR) would survive, unable to turn a profit. The microblogging platform has proven those critics wrong though, swinging to a profit of 14 cents per share in 2014 and growing its bottom line almost every year since. This year's expected bottom line is 86 cents per share, but analysts have been underestimating the company's profits.The stock's been rewarding too, though not as consistent. Namely, after a big rally in 2017 and early 2018, TWTR stock tumbled. Even then, however, there's been a bullish tone evident in the aftermath. A horizontal ceiling has taken shape around $35, but after forming a bottom near $26 since October, the stock's started to make higher lows. It appears the buyers are anticipating a breakout thrust, but are still waiting for the right catalyst. T. Rowe Price Group (TROW)Finally, add T. Rowe Price Group (NASDAQ:TROW) to your list of S&P 500 stocks that may well shrug off earnings-minded marketwide weakness. The mutual fund company may post lethargic results this year, but investors are already looking ahead to next year's projected revenue growth of 4.7% and earnings improving from 2019's projection of $7.05 per share to 2020's 7.42. * 5 Stocks to Profit From (Legal) Insider Buying Signals The shape of the TROW stock chart confirms this optimism. After taking on too much water in 2018, sending the stock from a high near $124 to a low near $85, investors have pushed T. Rowe shares in a straight line all the way back to $105. There's plenty more room to reclaim, and the trend is loaded with momentum.As of this writing, James Brumley did not hold a position in any of the aforementioned securities. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Internet Stocks to Watch * 7 AI Stocks to Watch with Strong Long-Term Narratives * 10 Dow Jones Stocks Holding the Blue Chip Index Back Compare Brokers The post 10 S&P 500 Stocks to Weather the Earnings Storm appeared first on InvestorPlace.
- Zacks•9 days ago
5 Top-Ranked Stocks to Survive the Retail Apocalypse
Some traditional retailers have what it takes to flourish even amid the chaos that the industry is facing.
- MarketWatch•11 days ago
J. Crew weighs Madewell brand IPO
J. Crew Group Inc. is “actively exploring strategic alternatives” for itself, including a possible initial public offering for its Madewell brand of women’s clothing and accessories.
- Investopedia•13 days ago
10 Stocks With Upside As Bull Rally Gets Pricey
These stocks, neglected by Wall Street, have the potential to post significant gains according to Jefferies.
- Associated Press•14 days ago
J. Crew considers IPO for its successful sister Madewell
Clothing retailer J. Crew Group Inc. says it's considering a potential initial public offering for its successful Madewell brand. It says a Madewell IPO, if pursued, could be completed as early as the second half of this year. Separately, it named Michael Nicholson, president and chief operating officer, interim CEO of J. Crew Group Inc. Retail veteran Mickey Drexler led J. Crew for more than a decade, helping it become a coveted fashion brand before it hit a multi-year sales slump.
- InvestorPlace•14 days ago
PagerDuty IPO: 13 Things for Investors to Know
The PagerDuty IPO is underway and it already has PD stock soaring.Source: Shutterstock Here are a few things for investors to know about the PagerDuty IPO and the company. * The company's stock is now trading on the New York Stock Exchange under the stock ticker "PD". * PagerDuty (NYSE:PD) was initially pricing its shares at $24 each. * This would have given the company a market capitalization of $1.80 billion. * However, the stock quickly took off and was instead sold at around $38 per share. * This gives the company a total market capitalization of $2.70 billion. * It's also worth noting that this is the first major software IPO for 2019. * However, this doesn't make it the first "Unicorn" IPO for 2019, but the third. * A Unicorn IPO is when a company with a valuation of $1 billion or more goes public. * The software that PagerDuty offers is for software developers. * This software helps the coders identify potential issues before they become a major problem. * Some of its customers already include Netflix (NASDAQ:NFLX), Slack, which reportedly has its own IPO plans, and Gap (NYSE:GPS). * These are only a few of the 11,000 customers that PagerDuty offers its software to. * The company was founded back in 2009 by three previous employees of Amazon (NASDAQ:AMZN). * 7 AI Stocks to Watch with Strong Long-Term Narratives You can follow these links to learn more about the PagerDuty IPO.InvestorPlace - Stock Market News, Stock Advice & Trading TipsPD stock was up 59% as of Thursday afternoon. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * FAANNG Stocks, Ranked From Cheapest to Most Expensive * 7 Stocks With a Lot on the Line This Earnings Season * 7 Marijuana Companies: Which Pot Stocks Should You Buy? As of this writing, William White did not hold a position in any of the aforementioned securities.Compare Brokers The post PagerDuty IPO: 13 Things for Investors to Know appeared first on InvestorPlace.
- InvestorPlace•16 days ago
Traders Mulling Gap Stock At Strong Support With a 4% Dividend Yield
Gap (NYSE:GPS) has been making a lot of changes over the past few months. It ended February with by announcing it will spin off its Old Navy brand and in March iGap scooped up Gymboree's high-end kids line Janie and Jack. Further, despite GPS stock making a big jump after reporting earnings, those gains have evaporated as notable support is now back on the table.There's a feeling that the Gap stock price will continue lower into long-time support. But there's also a feeling that because it's so far off the recent highs -- down more than 13% from its six-month peak in March -- that Gap stock will soon bounce. What should investors do?First, it should be acknowledged that a 3.76% dividend yield is not one to ignore. However, it shouldn't be the sole consideration for investors weighing a position in GPS stock. Instead, we have to also consider the valuation, as well as other peers worthy of buying.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Valuing Gap StockGap stock has some excellent assets and it's far from the worst apparel play investors can choose. Its Athleta brand has serious potential, particularly given the momentum in similar apparel brands like Lululemon Athletica (NASDAQ:LULU) and Nike (NYSE:NKE).That said, some of Gap's brands are far from thriving and overall growth is somewhat stagnant. Comp-store sales growth was flat in fiscal 2018 and revenue growth going forward is expected to be sluggish, too. Analysts estimate that revenue will grow 1.1% this year and next. * 7 High-Risk Stocks With Big Potential Rewards When it comes to earnings, consensus expectations call for a 4.6% contraction this year and 3.2% growth in 2020. Worth noting is the company's restructuring and spinoff of Old Navy. This will impact the top and bottom lines, but it should result in a stronger company with better margins.Also worth pointing out is that even though analysts expect an earnings contraction this year, the consensus expectation still calls for earnings of $2.47 per share. In other words, GPS stock trades at just over 10 times earnings, factoring in some of that slowing growth.Because of its brands and some of the good things Gap is doing, I consider it a somewhat attractive name, but not a must-own stock. At the same time, names like Target (NYSE:TGT) are attractive with its 3.2% dividend and long history of payout increases, or Kohl's (NYSE:KSS) with its 3.7% payout. However, I don't mind buying GPS on a pullback into support.So, let's see where that support is. Trading GPS Stock Click to EnlargeThe post-earnings surge in Gap stock to $31 has been swatted down, with shares now down below $26 after Tuesday's 2.05% drop. Downtrend resistance (blue line) is still very much resistance and $28 wasn't enough to support the name either. However, long-term range support near $24.50 was an excellent buying opportunity. * 8 Risky Stocks to Watch as Earnings Season Kicks Off Not only was this long-term support, but it was also the backside of prior short-term downtrend resistance (purple line). Because GPS stock crumbled so tragically last month after a post-earnings surge, the name did not land on my radar. That's too bad, because I'm kicking myself for missing GPS stock down there.If the 50-day and 20-day moving averages hold as support, Gap stock can put in a higher low and start working on a move higher. If those averages fail, investors can wait for a buying opportunity down near $24.50, where GPS stock price will be sitting near long-term support and pay a near-4% yield.Above the 200-day moving average and bulls can target $28 on the upside, with potential follow-through to downtrend resistance (blue line).Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Medical Marijuana Stocks to Cure Your Portfolio * 8 Best Stocks to Buy for an April Rally * Top 20 Stocks to Buy for 20-Somethings! Compare Brokers The post Traders Mulling Gap Stock At Strong Support With a 4% Dividend Yield appeared first on InvestorPlace.
- American City Business Journals•16 days ago
Pandora CMO joins Cardlytics board
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- InvestorPlace•16 days ago
4 of the Best Athleisure Stocks to Ride the Trend
Athleisure clothing is one of the hottest trends out there in apparel stocks today. Athleisure, for those unfamiliar, is comfortable clothing that is designed for exercise but is also appropriate for everyday wear. Particularly with time-strapped, on-the-move millenials, athleisure clothing is riding a huge wave of interest.What a lot of investors might not understand is that younger consumers are wearing these clothes everywhere, not just to the gym. Athleisure clothing has even started showing up in some workplaces. That has set up athletic apparel stocks with a great opportunity to make investors money as this trend moves from the gym to everyday life.Not all clothing companies are created equal, however. Some have come into the space more quickly than others. Lululemon Athletica (NASDAQ:LULU) practically invented the category, and a few other apparel companies wisely followed Lululemon's lead.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * The 10 Fastest-Growing Stocks to Invest In Right Now Here are four of the most promising athleisure stocks in 2019. Lululemon (LULU)Source: Shutterstock Morgan Stanley estimates that between 2007 and 2018, activewear sales rose from just under $200 billion annually, globally, to $325 billion. They see that number topping $350 billion in 2020. While athleisure is just a part of that figure, it has clearly been driving much of the overall growth. Overall apparel sales, by contrast, have been growing at just 2% annually worldwide.And we can give Lululemon all the credit for finding the trend early, and continuing to ride it. Investors looked down on LULU stock for just being a fad years ago. LULU stock traded sideways for years as people thought they would never outgrow being a yoga pants store. Over the past year, however, LULU stock has doubled as the brand has proven it can grow sales outside of its traditional markets. Most impressively, Lululemon is making increasing inroads in the male apparel market.Make no mistake, LULU stock is really expensive. At 49x trailing and 37x forward earnings, you need a lot to go right for Lululemon to keep appreciating. The stock did just make a fresh new all-time high on Thursday, after all. But if you want to play a trend, you're often best riding the industry leader. There's no disputing that Lululemon has its finger on the pulse of the athleisure movement. If athleisure continues to surge, LULU stock will continue its winning ways. Nike (NKE)Source: rodrigofranca via FlickrI recently warned not to buy Nike (NYSE:NKE) stock yet on the dip. So don't take this as a call that you need to own Nike stock immediately here. The company announced a mixed earnings report, and for now, we must be careful to see if it is the start of a trend. Unfortunately, with a company as large as Nike, there are a ton of moving parts that can overshadow the growing athleisure part of the business.Near-term complications, such as trade wars and weakness in China could keep NKE stock down in coming the months.For a longer-term investment, however, NKE stock makes a ton of sense. It's indisputably the leading apparel brand around the globe, and Nike has been quick to adapt to the athleisure trend. It may not have beaten Lululemon to the punch, but it has quickly gotten on board. * Top 10 Index Funds to Build a Retirement On Nike has innovated greatly in women's apparel in recent years to make sure that it is front and center in the more casual everyday athletic space. That reaches from traditional things such as better marketing to innovative product designs and more capable and comfortable fabrics. Nike, not surprisingly given its global reach, has been able to move into top position, ranking No. 1 in total athleisure sales according to Euromonitor. The Gap (GPS)Source: Shutterstock The Gap (NYSE:GPS) probably isn't the first name you think of when you consider athleisure stocks. However, it should be near the top of your radar. That's because The Gap is undergoing what could be a very profitable transformation.Recently, The Gap confirmed speculation that it will be spinning off Old Navy as a separate company. Of The Gap's four big brands, Old Navy has the best operating profit margins and it is still growing nicely. The Gap stock has arguably struggled in recent years because it is mixed in with Banana Republic and The Gap, both of which are mature, low-growth brands with much lower profit margins.Lost in the shuffle, however, is The Gap's other brand, the athleisure hit Athleta. Once Old Navy is established as its own business, that will leave Athleta as the high-growth face of The Gap going forward. Athleta is coming up on $1 billion in annual sales and just passed 150 stores, leaving it with about half the footprint of Lululemon so far. That gives it plenty more room to grow. Its sales trends remain reasonably strong, particularly in girl's apparel. Athleta has been living under the shadow of Old Navy. Once the spinoff is complete, look for upside in Gap stock, which is currently yielding almost 4% and trading at 11x forward earnings. Under Armour (UAA)Source: Shutterstock If you're looking for a bargain in this red-hot sector, you'll want to take a look at Under Armour (NYSE:UA, NYSE:UAA). Okay, bargain is in the eye of the beholder. At 35x forward earnings or so, UAA stock is still way more expensive than Gap on earnings. But earnings could turn around here quickly.As it is, Under Armour stock is still down close to 20% from its recent highs, and is still down more than 50% from its peak a few years back. Under Armour fell off the pace as its basketball shoe sales gave in to the inevitable and fell behind Nike again after a hot streak. But there's more to the business than basketball. * 10 Dangerous Dividend Stocks to Avoid Unfortunately, some of Under Armour's efforts into athleisure failed to pay off as much as expected. As a result, the company is changing up its approach. CEO Kevin Plank noted that many buyers of athleisure products never actually exercise -- they simply like the look and feel. Under Armour is instead deciding to double down on what made it great in the first place: athletic performance. Under Armour aims to create more stylish lines that achieve superior performance to the competition. It's still a question if Under Armour can pull it off, but with UAA stock down this far, the reward will be great if the company can turn things around.At the time of this writing, Ian Bezek did not hold a position in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Medical Marijuana Stocks to Cure Your Portfolio * 8 Best Stocks to Buy for an April Rally * Top 20 Stocks to Buy for 20-Somethings! Compare Brokers The post 4 of the Best Athleisure Stocks to Ride the Trend appeared first on InvestorPlace.
- Insider Monkey•17 days ago
Here’s What Hedge Funds Think About The Gap Inc. (GPS)
Reputable billionaire investors such as Jim Simons, Cliff Asness and David Tepper generate exorbitant profits for their wealthy accredited investors (a minimum of $1 million in investable assets would be required to invest in a hedge fund and most successful hedge funds won't accept your savings unless you commit at least $5 million) by pinpointing […]
- American City Business Journals•17 days ago
Poshmark’s plan to go public builds retail presence on expanding IPO stage
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3 Sports Retail Stocks to Buy Right Now: LULU, VFC, UAA
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- InvestorPlace•18 days ago
Earnings Disappointment for DLTH Stock Has a Silver Lining
You might not know Duluth Holdings (NASDAQ:DLTH) by name. However, you almost certainly know their distinctive marketing campaign. Indeed, their commercials feature the right mix between broad appeal and humor, lifting the bull case for DLTH stock. * 7 High-Risk Stocks With Big Potential Rewards The structure is so simple yet so brilliant. Source: Bill McChesney via Flickr (modified) A cartoon character, typically a plump, middle-aged man, encounters a common problem with his attire. DLTH comes to the rescue with their unique brand of clothing. Our protagonist is happy, and the viewing audience is left in stitches. It's a shtick, but it's an effective one. Back in 2015, total revenue dollars didn't even crack a quarter-of-a-billion. Now, sales are well above half-a-billion. And while Duluth Holdings stock has had a wild ride since its initial public offering more than three years ago, the company has demonstrated potential.InvestorPlace - Stock Market News, Stock Advice & Trading TipsIf investments were graded only on narratives, DLTH stock would absolutely soar. Unfortunately, the markets also want to see results. That's where the apparel-maker with its lovable characters fell well short.As our own Karl Utermohlen reported, Duluth generated income of $20.8 million for the fourth quarter of fiscal 2018. This number translates to approximately 64 cents per share, which was a significant improvement over the year-ago-quarter's results. Back then, the company produced earnings of 55 cents per share.However, this quarter, analysts were looking for earnings per share of 75 cents. In another blemish for DLTH stock, management rang up sales of $250.5 million. Again, this tally fell short of analysts' consensus expectations for $257.5 million.Adding to concerns, the apparel industry is extremely competitive. Fashion trends are unpredictable, especially among millennials. Therefore, I'm not surprised that Duluth Holdings stock dropped nearly 19% in after-hours trading. There's a Reason Why DLTH Stock TankedGiven the ugliness that has already happened and is sure to follow, your best bet is to steer clear. Duluth Holdings stock has turned into a falling knife, with a high probability of a stabbing.I say this because shares fell for a reason. Due to the law of small numbers, an up-and-coming organization can't afford to miss revenue expectations. Moreover, you don't want to miss sales and earnings targets.But if you dig a little deeper, you'll find that the revenue miss also has its own, nuanced explanation. According to Duluth CEO Stephanie Pugliese, the company overall enjoyed many successes in 2018, including rising sales in Q4.So, what happened? On the Q4 conference call, Pugliese disclosed that sales momentum remained strong through the first week of December. However, a broader consumer slowdown pressured the retail sector, eventually dooming DLTH stock.I'm assuming she's talking about the government shutdown, which likely had a disproportionate impact on Duluth Holdings stock. If you browse their website, Duluth apparel caters heavily towards the blue collar, outdoorsy type.When the government temporarily closed its doors, it didn't just negatively affect federal employees. It also affected business contracts and rural communities, which surround many impacted federal institutions. Under normal circumstances, rural life is tough. But when you have a government shutdown on top of it, it takes the wind out of you.Therefore, a substantial amount of Duluth's core customers had to dial back their spending. Certainly, the timing of the company's revenue dearth matches that of the shutdown.That doesn't mean I'm necessarily gung-ho on DLTH stock. However, I think the markets are making a mistake in not really listening to Pugliese's reasonable and logical explanation. Tailwinds for Duluth Holdings StockI really can't tell you how the markets will react to DLTH stock over the next few days. By the numbers, the Q4 earning report genuinely stunk up the room.But again, if you're risk-tolerant, look deeper. Inside, you'll find compelling tailwinds that distinguish DLTH from other apparel-makers like Gap (NYSE:GPS), American Eagle Outfitters (NYSE:AEO), and Abercrombie & Fitch (NYSE:ANF).First, Duluth products emphasize function over form. For most of the field, it's the other way around. This helps DLTH stock in the long run, because the company isn't as levered to fashion whims as its rivals. As long as management produces practical, utilitarian clothes, they're pretty much golden.Second, Duluth customers love the company. Pugliese noted double-digit growth in the company's active user base. While a small detail, you shouldn't ignore it. This brand loyalty could one day lift DLTH stock from its current doldrums.Finally, that marketing gem of theirs will keep the Duluth name in the limelight for years to come. I don't have any brand association with the three companies I mentioned above, even though I've bought their products. * 10 Dangerous Dividend Stocks to Avoid I've never purchased Duluth clothing, but I remember several of their commercials. That's off-the-charts marketing, and at some point, it may translate to a higher share price.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Data Center Buys That Deliver Sizable Income * 7 High-Risk Stocks With Big Potential Rewards * 3 Marijuana Stocks to Watch as New York, New Jersey Delay Legalization Compare Brokers The post Earnings Disappointment for DLTH Stock Has a Silver Lining appeared first on InvestorPlace.
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You Should Have Seen This Banner Quarter in LULU Stock Coming
Before I get into the highlights of Lululemon's (NASDAQ:LULU) fourth-quarter earnings, which has LULU stock up 15% on the day as I write this, investors should have seen a good report coming.Source: Shutterstock I recently named Lululemon one of 7 Retail Stocks Winning in 2019 and Beyond. I've been a strong supporter of the company for a while now. In 2016, I predicted that LULU stock would be one of the top S&P 500 stocks over the next decade. In July last year, I opined that the company's hiring of Calvin McDonald as CEO was a brilliant move. Considering how it's done since then, I'd say I was spot-on.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Tech Stocks That Transformed Their Business I'm not trying to toot my horn. I'm merely saying that some times you have to forget all the noise about retail this, and retail that, and walk into a store or try a company's product or service to know that it's dialed in. Here's what I said in March about my visit to LULU:"I got my wife a LULU gift card for our wedding anniversary in February. We recently stopped in at the only Lululemon store currently open in Halifax; it was packed on a Saturday afternoon. So busy, in fact, that we decided to leave because we couldn't get any service."Anyone could have gone into their local Lululemon in March and realized that the demand for its apparel is off the charts at the moment. A killer quarter was glaringly obvious to anyone who bothered to look. LULU Stock and the Q4 ReportRevenues were $20 million higher than analyst expectations for LULU at $1.17 billion. It was the company's first quarter over $1 billion. Earnings were $1.85 a share, 11 cents better than the consensus. Compared to last year, revenues increased by 26% while earnings per share on an adjusted basis were 39% higher year over year. Other strong numbers in the quarter: gross margins were 100 basis points higher at 57.3%, its operating margin was 80 basis points higher at 28.4%, and its effective tax rate dropped from 53.5% to 34.6% as a result of the lower U.S. corporate tax rate. About the only blemish was same-store-sales growth, which met analyst expectations, up 17% excluding currency. However, even with that, there was a silver lining. While the brick-and-mortar stores saw 7% same-store-sales growth excluding currency, its online business had a 39% increase in revenue in the quarter and 46% for the entire year. Also, Lululemon's Chinese online sales grew by 140% in the quarter, with Japan and South Korea expected to contribute significantly to the company's future growth. The Bottom Line on LULU StockTo get an idea just how much the pendulum has swung, Toronto-based Canaccord Genuity analyst Camilo Lyon said this about the company's fourth quarter:"The fact that LULU has achieved three of its 2020 targets (EBIT margin, gross margin and ecommerce mix) two years ahead of plan speaks to the momentum in the business and strength of the leadership team," Lyon said about the results. Only 18 months ago, Lyon was highly skeptical about Lululemon's brand."We are also witnessing some shifts in brand preferences away from Nike and Under Armour, and in favour of Athleta," he wrote in September 2017. "Athleta's rise could add to LULU's competitive concerns particularly as Gap (NYSE:GPS) re-focuses its growth efforts on the concept."I don't think there's any doubt he's on board the LULU train. He's got a 12-month price target of $186, 10% higher than where it's currently trading. Try and find a flaw in LULU's fourth quarter. It was a thing of beauty. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Genomic Testing Stocks That Can Ease the Sting of Theranos * 4 Pot Stocks That Could Be Fizzling Out * 7 Mid-Cap Growth Stocks That Could Be the Next Amazon or Netflix Compare Brokers The post You Should Have Seen This Banner Quarter in LULU Stock Coming appeared first on InvestorPlace.
