The total value of the acquisition is approximately $1.1 billion. Apax-controlled funds already own about 30% of rue21’s stock. The acquisition is expected to close by the end of this year.

Under the terms of the agreement, rue21 has a 40-day “go-shop” period during which it may actively seek and accept a better offer. Should a better deal turn up, rue21 will pay a termination fee of about $10 million. Apax Partners is based in London.

In conjunction with this announcement, rue21 also offered preliminary first-quarter 2013 results. The company said net sales rose 9.1% year-over-year for the quarter, but that same-store sales fell by 4.6%. Diluted EPS is expected to total $0.44, short of analysts’ consensus estimate of $0.48.

Shares of rue21 are up about 23.1% in premarket trading this morning to $42.00, after closing at $34.12 last night. The stock’s 52-week range is $23.85 to $35.25, and its all-time high price was around $37 in the summer of 2011.

For the quarter, the apparel company posted adjusted diluted earnings per share (EPS) of $1.41 on revenues of $1.64 billion. In the same period a year ago, Ralph Lauren reported EPS of $0.99 on revenues of $1.62 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $1.30 and $1.7 billion in revenues.

For the full year, the clothing maker reported adjusted EPS of $8.13, compared with a consensus estimate of $8.03.

Retail sales grew 7% in the quarter, but wholesale sales dipped 4% and licensing revenues were flat compared with the fourth quarter of 2012. Gross margins rose 2.2% to 59.3%.

The company’s president and COO said:

Enhanced profit flow-through was achieved despite sustained macroeconomic challenges and strategic decisions that mitigated revenue growth during the year. We are excited about the Company’s diverse and compelling opportunities for future growth, and have planned Fiscal 2014 as a year of accelerated investment in our highest priority strategic initiatives.

The company’s fiscal year 2014 forecast calls for revenue growth of 4% to 7%, which includes a net negative impact of 1.5% related to currency translation effects. Operating margins are expected to slip by 25 to 75 basis points.

For the first quarter of 2014, Ralph Lauren expects a low-single digit increase in sales and operating margins to be 2% to 2.5% lower than the same period a year ago.

Lauren’s stock price is up about 33% over the past 12 months, while competitor Michael Kors Holdings Ltd. (NYSE: KORS) is up more than 60% in the same period. Ralph Lauren’s share price growth also trails PVH Corp. (NYSE: PVH), which saw its stock price rise by more than 60%.

Ralph Lauren’s shares are trading down about 3.8% this morning, at $181.00 in a 52-week range of $134.29 to $192.03. The consensus target price for the shares was around $193.15 before today’s report.

In a new report, the team at UBS note that with unfavorable weather and high inventories in the first quarter of this year, they see little upside ahead for department store guidance. Without improving fundamentals, they also see little reason for price-to-earnings ratios to expand further relative to the market to justify a more positive stock outlook. While the fundamentals may not look that exciting for the department stores, the prospects for specialty retail and specialty retail products remains solid.

Here are the specialty retail stores and products stocks to buy at UBS.

Nike Inc. (NYSE: NKE) still dominates specialty athletic apparel and footwear sales. With global market share that could grow to 6.5%, sales have never been stronger. The UBS price target for the stock is $68. The Thomson/First Call estimate is $64. Investors receive a 1.30% dividend.

Foot Locker Inc. (NYSE: FL) is a retailer to buy at UBS. The company continued its expansion by buying German retailer Runners Point last week. The UBS target for the stock is $39, and the consensus is $40. Investors are paid a 2.20% dividend.

L Brands Inc. (NYSE: LTD) showed solid 2% comparable-store sales growth on Monday. The UBS target for the stock is $53. The consensus price target for the stock is also $53. Investors receive a 2.30% dividend.

Ralph Lauren Corp. (NYSE: RL) stock has been on fire. The company has continued to add popular merchandise to its vast portfolio of apparel and accessories. UBS has a target for the stock of $195. The consensus estimate is the same at $195. Investors receive a small 0.90% dividend.

TJX Companies Inc. (NYSE: TJX) is one of two specialty discount retailers that makes the list of stock to buy. The UBS target price is $53, but the consensus is lower at $50. Shareholders are paid a 1.10% dividend.

Ross Stores Inc. (NASDAQ: ROST) is another discount specialty retailer to buy. Ross Stores improved earnings per share by 25.9% in the most recent quarter, compared to the same quarter a year ago. UBS has a $75 target. The consensus is much lower at $68. Investors receive a 1.00% dividend.

V.F. Corp. (NYSE: VFC) is an apparel manufacturer with an impressive list of well-known names. In addition to the popular Lee Jeans brand, the company also designs and sells North Face, Timberland, Vans, Kipling, Napapijri, Reef, Eastpak, JanSport, SmartWool, Lucy and Eagle Creek brands, among others. The UBS target for this apparel giant is $191. The consensus is at $188. Investors are paid a 1.90% dividend.

ANN Inc. (NYSE: ANN) is a very popular destination for women shoppers. With a new Kate Hudson collection now available, sales have been strong. UBS has a $40 target for the stock. The consensus is lower at $35.

Express Inc. (NYSE: EXPR) wraps up the names to buy at UBS. Targeting men and women between 20 and 30, the company’s prudent customer-focused approach to merchandising sets it apart from its competitors. UBS has a $21 target, the same as the consensus estimate.

Clearly the economy will determine whether the retail sector continues to be a good buy for investors. If expected growth in the second half of the year does indeed materialize, then owning some of the UBS stocks to buy in the sector should prove to be a solid choice.

According to the Adidas first-quarter earnings release:

In the first quarter of 2013, Group revenues were stable on a currency-neutral basis as a result of sales increases in Retail and Other Businesses. Currency translation effects had a negative impact on sales in euro terms. Group revenues decreased 2% to € 3.751 billion in the first quarter of 2013 from € 3.824 billion in 2012.

And:

Retail sales increased 6% versus the prior year, driven by sales growth at both adidas and Reebok.

As should have been expected, sales in the Adidas home market of Europe dropped 6%. That was offset by a 2% improvement in North America and a 6% increase in China. Adidas sales look very much like the global economy.

It’s rival did even better. Nike revenue grew 9% to $6.2 billion. However, the mix by geography was different, probably more for competitive market share reasons than the health of economies from region to region. In its home market of North America, sales rose 18%, powered by footwear. Western Europe revenue rose an unexpected 8%, which is impressive for a region that is in recession. And China sales tumbled 9%, which is odd, given the relative economic health of that region.

Despite the global mix of sales, each company did well and was rewarded by an increase in stock price.

A pair of athletic shoes costs what? Perhaps as little as $20 in China and as much as $100 in the United States and European Union. Regardless of the region, these purchases are discretionary. Other shoe companies make products that cost less, and these likely are bought by people who cannot afford more expensive products or think they are a frivolous expense. But, around the world, with great regularity, people will make these modest purchases of Nike and Adidas shoes. It may not be much, but it is a signal that consumer spending has not died altogether.

Earlier this morning, shares of nutritional food maker and multilevel marketer Herbalife Ltd. (NYSE: HLF) were halted at opening amid speculation that its shares also were involved in the insider trading scheme.

So far there has been no announcement from either Skechers or Herbalife.

Shares of Skechers were up nearly 2% in morning trading today, at $21.87 in a 52-week range of $12.56 to $22.61.

Abercrombie & Fitch (NYSE: ANF) started as Underweight with $44 target at Barclays.

Aeropostale Inc. (NYSE: ARO) started as Equal Weight at Barclays.

American Eagle (NYSE: AEO) started as Overweight with $25 target at Barclays.

Gap Inc. (NYSE: GPS) started as Overweight with $45 target at Barclays.

GNC Holdings Inc. (NYSE: GNC) raised to Buy with $50 price target at Deutsche Bank.

Groupon Inc. (NASDAQ: GRPN) is generally deemed Internet or social media, but all it really does is offer daily deals and now offers payment processing to merchants. It was included in a broad Internet and interactive media call at UBS, with a Sell rating and $44.40 price target.

Hanesbrands Inc. (NYSE: HBI) raised to Overweight from Equal Weight at Barclays.

Limited Brands Inc. (NYSE: LTD) started as Overweight at Barclays.

Ross Stores Inc. (NASDAQ: ROST) was included in a UBS list of stocks that the firm believes has 25% upside or more.

Under Armour (NYSE: UA) started as Overweight with $60 target at Barclays.

Urban Outfitters Inc. (NASDAQ: URBN) started as Overweight with $50 target at Barclays.

Barclays did include other names in the research initiations today, but some were screened out due to volume being light or because they were only given Equal Weight ratings.

If you are curious what Easter added to the economy from retail and beyond, that was projected at $17.2 billion. We think it is more because so many items are not counted in that report.

The 2013 report was called one of frugality as the average person celebrating Easter will spend roughly $145.13 in 2013 versus $145.28 in 2012. The total comes from spending on candy, decor, apparel and food. Here are some basic statistics used from the study:

• Family brunch or dinner: 86.9% will spend an average of $45.26 on items needed for their holiday meal.
• New spring attire: Some 48.4% will purchase clothing this Easter, spending an average of $25.91 for bright new outfits for children or for themselves.
• Candy: A whopping 90.5% will have bought Easter candy, spending an average of $20.66 on jelly beans, chocolate and more.
• Easter gifts: $20.82 on gifts.
• Flowers: $9.49 on flowers.
• Decorations: $9.11 on decorations.
• Where they buy: Some 63.4% will shop at discount stores; 40.7% will shop at their favorite department store; 24.9% will shop at specialty stores, some 21.1% will shop online, and 10.6% will go to specialty clothing stores.

There is also proof that the mobile internet is taking over on shopping as well, even for the Easter Bunny. The report showed:

• 43.3% of smartphone owners will have used their mobile device to research product information, look up store hours and location, compare prices and even purchase gifts and other items.
• 14.8% said that they would purchase Easter products with their smartphones.
• 51.0% of tablet owners said that they would use their device to make purchases, or to do things like research prices and products and to look up retailer locations and hours.
• 22.1% of those surveyed said that they would purchase something via their tablet.

We would again note that the holiday tally here sounds huge at $17.2 billion in 2013. Our issue is that of the $145.13 spent, the tally of clothing, candy, gifts, food, flowers, decorations and greeting cards comes to $116.39. The “other” category is only $28.74 and does not include many of the things we might lump in with the extra family spending.

Read Also: The Cost of the 12 Days of Christmas

Many families go out of town to see family or to get away for the three-day weekend. Most schools were out on Friday, the banks and markets were closed, as were many government offices. The driving, airline tickets, hotels, and the new clothing that is likely bought ahead of a trip would blow this number out of the water. What about all of the extra churchgoers that head to church with their family? That brings extra dry cleaning bills, extra gasoline, and of course extra monetary donations. Then there are also all of those emergency expenses for things like bandaids and all of those “I forgot to bring” expenses that happen just about every time someone travels or goes somewhere outside of their house.

We would conclude with one simple question after tallying up all the other expenses that are not just considered to be retail expenses that the BIGinsight focus used and all the non-retail or planned expenses. Does all of this make really Easter more than a $20 billion holiday?

Read Also: How Halloween Now Costs Over $10 Billion

Oh, and there is one last thing for those who celebrate this holiday. Happy Easter!

The short interest for March 15 showed a drop of only about 2% to 61.008 million shares from 62.365 million shares as of February 28. Nominally this is still very high, but its days to cover ratio of 2.62 is actually the lowest reading seen in a year. The short interest snapshot below will show that.

Here are some of the analyst calls of late:

• March 25, cut to Underperform at BMO Capital Markets
• March 19, reiterated Buy with $25 target price at Argus (also on Feb. 28)
• March 19, Gilford Securities proposed a REIT structure, but it is bearish and even hinted at bankruptcy or liquidation scenarios
• March 6, cut to Neutral at Citigroup
• March 6, cut to Perform at Oppenheimer
• Feb. 15, maintained Underperform with $15 target at Credit Suisse

We are not trying to call a bottom here. In fact, shares are weak this morning .and at just under $15. The 52-week range is $14.20 to $36.89. What we cannot avoid is what the tape is saying, and that may be that the worst has been seen if the short interest has really exhausted to this point. The analyst sentiment is also so negative that we cannot even imagine how much this beaten stock would rally on the hint of any good news.

For the quarter, the company reported diluted earnings per share (EPS) of $0.75 on revenue of $485.5 million. In the same period a year ago, the company reported EPS of $0.51 on revenue of $371.5 million. This morning’s results also compare to the Thomson Reuters consensus estimates for EPS of $0.74 and $482.1 million in revenue.

For the full year, Lululemon reported EPS of $1.85 on revenues of $1.4 billion. A year ago the company posted EPS of $1.27 on revenues of $1 billion. The consensus estimate called for EPS of $1.84 on revenues of $1.37 billion.

The company’s CEO remarked on the company’s transparency issues:

Our proprietary fabric, black Luon, is a very technical and sensitive product to manufacture. We have a long history with our manufacturers and as we have in the past, we are working closely with them to resolve the current issues. We have a team on site collaborating with them to identify the root cause.

Well, it should be easy to spot.

Lululemon guided first-quarter revenues in the range of $333 million to $343 million, based on a same-store sales increase in the range of 5% to 8%. EPS is forecast at $0.28 to $0.30, which includes a negative impact of $0.11 to $0.12 per share related to the Luon fabric issue. The consensus estimate calls for EPS of $0.40 on revenues of $345 million.

For the full year, Lululemon forecasts revenues of $1.615 billion to $1.64 billion and EPS of $1.95 to $1.99. The consensus forecast calls for full-year revenues of $1.67 billion and EPS of $2.17.

Lululemon’s same-store sales rose 10% in the quarter on a constant dollar basis, and gross profit rose 31%. Gross margin rose slightly, from 56.3% to 56.5% year-over-year. Operating margins also rose slightly.

Shares are down about 2% in premarket trading this morning, at $63.88 in a 52-week range of $52.50 to $81.09. Thomson Reuters had a consensus analyst price target of around $75.90 before today’s results were announced.

We now have seen many analysts cut numbers and some downgrades based on the guidance. These are the research calls we have seen:

• BofA/Merrill Lynch maintained an Underperform rating with a $60 price target.
• Credit Suisse maintained its Neutral rating and $79 target.
• Janney cut to the target to $71 from $80.
• Stifel Nicolaus trimmed its target by $8 down to $75.
• Stern Agee cut the rating to Neutral from Buy.

As far as the financial impact, the yoga-themed retailer expects first quarter same-store sales growth of 5% to 8% versus its prior forecast of 11% and revenue in a range of $333 million to $343 million versus its prior range of $350 million to $355 million.

Lululemon saw shares fall 3.75% on Monday to $65.90, and the drop so far on Tuesday is almost 5% down to $62.75. Its 52-week trading range is $52.20 to $81.09. The consensus from Thomson Reuters has Lululemon trading at 28-times forward 2013 (2014) earnings.