There are a few recent articles that mention J.Crew that I thought had some interesting notes to share. :) The first article is from Seeking Alpha (click
here to read the full article) which discusses J.Crew's recent success and prediction for the future.
Cramer's Mad Money - The Next Pins to Fall (12/1/09)
December 02, 2009
Even though J.Crew (JCG) is up 397% since last year, there is still room for upside on the fundamentals, and the technicals agree. The charts indicate that J.Crew is on the way to $50 from its current $44, but may take a detour down to $38 first. Cramer thinks the predicted decline is a buying opportunity, especially with Mickey Drexler, who made Gap (GPS) into a fashion and business force, at the helm of J.Crew.
The company reported an increase in same-store sales and a decrease in inventory going into the holidays, but these facts matter less than what Cramer calls "The Mickey Drexler quotient" - the CEO's talent for keeping his company in the public eye. First Lady Michelle Obama appeared on the Tonight Show wearing J.Crew apparel, and her daughters are regularly photographed in J.Crew clothes. Cramer recommends buying half a position at its current price and the second half when the stock dips.
The next article is from the Chicago Tribute (click
here to read it in its entirety) about shoppers this holiday season.
Holiday shoppers to take a breather: Retailers are bracing for slow week following a flurry of sales at the end of November
By Sandra M. Jones
December 2, 2009
Now comes the holiday shopping lull. After a surge of shopping the four days after Thanksgiving, retailers are bracing for a week of nail-biting as consumers recover from a long weekend of deals.
Retail sales are expected to rise slightly for November, bolstered by the bargain-heavy shopping days of Black Friday and Cyber Monday, along with easier comparisons with the year-ago period when the financial crisis drove shoppers into hibernation. Still, there is plenty of caution to go around. ...
J.Crew Group Inc. CEO Mickey Drexler told investors last week in an earnings conference call that retailers typically get "a little depressed" the Tuesday after Thanksgiving as shopping activity slows.
"Then two weeks in front of Christmas, we'll all get a little happier," he said, "and we'll know within five days before Dec. 25 how good it will be."
What are your thoughts on either article? Do you agree or disagree with any points made? Do you think shoppers get a bit "depressed" after Thanksgiving? ;)
There are a few recent articles that mention J.Crew that I thought had some interesting notes to share. :) The first article is from Seeking Alpha (click here to read the full article) which discusses J.Crew's recent success and prediction for the future.
While the retailers may get depressed after Thanksgiving, I think the customers are just waiting for the next round of sales. Why buy at full price when you know there will be price cuts in a few weeks?
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