There is an interesting article over at Forbes (click here) about J.Crew's stock price and its recent positive trend.
J.Crew climbs as analyst lifts to 'Outperform'By Associated Press
August 18, 2009
Shares of J.Crew Group Inc. surged Tuesday, getting a boost from a ratings upgrade and price target increase.
BMO Capital Markets analyst John Morris lifted the retailer to "Outperform" from "Market Perform" and raised his share price target to $35 from $25.
In a client note, Morris said the New York-based company is laying the groundwork for a strong long-term performance partly on signs that its fall merchandise is off to a good start.
"Our sources close to the company also confirm that not only is the merchandise trend-right, but it is differentiated to the competition - a major positive," the analyst wrote.
The recession and budget-conscious shoppers have also led many department stores to play it safe, giving J.Crew a chance to eat into market share, Morris explained.
"We think J.Crew is getting the benefit of shoppers veering away from the ultra luxe high-end department stores in favor of J.Crew's more affordable wares in this environment," he said.
Morris raised his second-quarter earnings estimate to 20 cents per share from 12 cents per share. Analysts surveyed by Thomson Reuters, whose estimates normally exclude one-time items, predict profit of 14 cents per share.
J.Crew's stock gained $1.84, or 6.5 percent, to $29.97 in afternoon trading. The shares have traded in a range of $8.02 to $38 over the last year.
This is wonderful news for J.Crew's stockholders (including myself). I am happy to hear that J.Crew is still outshining its competitors through its "trend-right" merchandise. Yey!
What are your thoughts on the article? Do you disagree or agree with the comments about J.Crew, including their ability to differentiate themselves well? Do you think other retailers are playing it "too safe"? Would you consider purchasing J.Crew stock? :)
New arrivals just posted! And I think to myself....I stayed awake for this? *sigh* It's not as exciting if you've already seen it all at the stores... Still a few things I like though. Always. :)
ReplyDeleteOoooh, love being on the West Coast now, I checked at 10pm and new arrivals were up!!
ReplyDeleteWhile I'm happy to hear that JC stock is rising, just reading other JCAs posts here about AT Loft and other competitors (including Tar-jay) with new styles similar to JC's older, beloved styles makes me concerned that this rise in JC stock is not going to continue. These other retailers realize that hey, if a style was loved at JC and JC is no longer creating them, we can make a few extra bucks.
ReplyDeleteJ Crew needs to stay ahead of the trend; continue with innovative styling, beautiful colors, *high-quality materials and manufacturing*....fudge those and I think the stock price will remain stagnant or drop.
Honestly, I'm looking at AT now as a stock that may be on the rise....
Audball,
ReplyDeleteI agree with you completely. The tide is turing for me away from JCRew as my basically sole shopping place. I have been spending more elsewhere after 8 years of being a HUGE over the top JC fan.
I don't think jcrew cares much about the loyalty to the brand. I think I'm going to start looking at other brands. For now, their stuff just isn't anything exciting for me. It will be interesting to see what their quarterly profits are, and if they keep sending their new merchandise to the sale section in a week, just to move it, ultimately that will be a telling sign for which way the stock will be headed.
ReplyDelete