24/7 Wall St. » VRA

Jefferies Best Specialty Retailer Stocks to Buy

Lee Jackson — Thu, 09 May 2013 12:15:03 +0000

Consumer purchasing comprises almost 70% of the gross domestic product calculation. With a rising stock market and home values increasing, consumers are feeling better in 2013 than they have felt in years. This improved outlook may very well lead to increased sales figures at retailers around the country.

The retail/specialty store analysts at Jefferies are about as bullish as a Wall Street firm can be when it comes to their outlook on the sector. They remain extremely positive on the group as a whole, and think retail stocks are still headed upwards on a multiyear run, driven by four leading indicators:

Lean inventories in the retail environment
Upside to margins with raw material prices falling
The previously mentioned improving consumer sentiment
Retailers poised to embark on a significant acceleration in free cash flow

With these positive catalysts falling into place, Jefferies has a solid group of retailing stocks to buy.

Deckers Outdoor Corp. (NASDAQ: DECK) is the absolute top pick to buy. With its popular outdoor clothing to the extremely successful UGG line of women’s footwear, Deckers has chased away many short sellers. The Jefferies price target is a staggering $100. The Thomson/First Call estimate is much lower at $62.

The Gap Inc. (NYSE: GPS) ranks as the number two top pick at Jefferies. This apparel maker’s brands also include Old Navy and Banana Republic. The Jefferies price target is $56, while the consensus estimate is $40. Investors are paid a 1.50% dividend.

Francesca’s Holding Corp. (NASDAQ: FRAN) makes the list. Francesca’s was recently added to the Small Cap 600 stock index. Jefferies has a price target for the stock of $42. The consensus is at $39.

Michael Kors Holdings Ltd. (NYSE: KORS) went public in December of 2011 and hasn’t looked back since. The company engages in the design, marketing, distribution and retail of branded women’s and men’s apparel and accessories. The Jefferies price target for this top name is $81. The consensus target is $75.

Ulta Salon, Cosmetics & Fragrances Inc. (NASDAQ: ULTA) is an absolute magnet for women shoppers. Ulta Salon, after more than 20 years of operation, has become a large beauty retailer with more than 20,000 salon service locations in the United States. The Jefferies price target for the stock is $100 and the consensus is at $93.

Vera Bradley Inc. (NASDAQ: VRA) is primarily known for its iconic patterned bags. Between 2008 and 2012, the company doubled its annual revenue from $239 million to $541 million, and it nearly tripled its net earnings from $24 million to $69 million. Jefferies’ price objective is $35. The consensus estimate is $30.

Fossil Inc. (NASDAQ: FOSL) is a stock to buy. For the first quarter, the company beat revenue and earnings expectation handily. The Jefferies target is $130. The consensus for this volatile name is at $115.

rue21 Inc. (NASDAQ: RUE) completes the list of top retail stocks to buy at Jefferies. The company, which sells tank tops and graphic tees to teenagers at affordable prices, is shaping up to be a possible target for a private-equity investment. The Jefferies target for the stock is $40. The consensus estimate is $33.

The difference between the consensus price targets for these stocks and the Jefferies price targets tell a big story. If the consumer stays strong and the economy continues to improve, the sky-high Jefferies targets may indeed become a reality. Should the economy sputter and slow down, all retail bets may be off.

Filed under: Analyst Calls, Retail Tagged: DECK, featured, FOSL, FRAN, GPS, KORS, RUE, ULTA, VRA

24/7 Wall St. Closing Bell — March 14, 2013: Markets Climb to New Highs Today (AMZN, EBAY, WFC, VMW, ETFC, BFAM, MW, VRA, LODE, SOL, AEO, MCP, ZUMZ, BWS, MGM, SD)

Paul Ausick — Thu, 14 Mar 2013 20:03:50 +0000

U.S. equity markets opened higher this morning following a better-than-expected report on new jobless benefits claims in the U.S. and a mostly inline report on producer prices (more coverage here). In Europe, eurozone unemployment fell a bit more than expected and Spanish retail sales were not as bad as expected. In Asia, key interest rates in New Zealand and South Korea remained unchanged. The Shanghai index closed higher for the first time in six days. The DJIA closed with a tenth straight day of gains and the S&P closed within a couple of bucks of its all-time high.

The U.S. dollar index fell 0.41% today, now at 82.553. The GSCI commodity index is down 0.4% at 647.17, with commodities prices mostly higher today on the weaker dollar. WTI crude oil closed up 0.6% today, at $93.03 a barrel. Brent crude trades up 0.7% at $109.00 a barrel. Natural gas is up 3.8% today at about $3.82 per million BTUs following a relatively large draw on stocks last week (more coverage here). Gold settled up 0.1% today at $1,590.70 an ounce.

The unofficial closing bells put the DJIA up more than 82 points to 14,538.99 (0.58%), the NASDAQ rose nearly 14 points (0.43%) to 3,258.93, and the S&P 500 rose 0.56% or nearly 9 points to 1,563.20.

There were a several analyst upgrades and downgrades today, including Amazon.com Inc. (NASDAQ: AMZN) cut to ‘neutral’ at J.P. Morgan; eBay Inc. (NASDAQ: EBAY) reiterated as ‘buy’ with a price target of $65 at Argus and raised to ‘overweight’ at Evercore; Wells Fargo & Co. (NYSE: WFC) started as ‘market perform’ at BMO Capital; VMware Inc. (NYSE: VMW) raised to ‘outperform’ at William Blair and maintained on Focus List at Credit Suisse; and E*Trade Financial Corp. (NASDAQ: ETFC) cut to ‘underperform’ at KBW.

Earnings reports since markets closed last night resulted in several price moves today, including these: Bright Horizons Family Solutions Inc. (NYSE: BFAM) is up 11.2% at $33.35 after posting a post-IPO high of $33.49 earlier today; Men’s Wearhouse Inc. (NYSE: MW) is up 19% at $34.60; Vera Bradley Inc. (NASDAQ: VRA) is down 8.4% at $22.81; Comstock Mining Inc. (NYSEMKT: LODE) is down 7.1% at $1.97; and ReneSola Ltd. (NYSE: SOL) is up 1.4% at $2.17.

Before markets open tomorrow morning we are scheduled to hear from Aeropostale Inc. (NYSE: AEO), Molycorp Inc. (NYSE: MCP), Zumiez Inc. (NASDAQ: ZUMZ), and Brown Shoe Co. Inc. (NYSE: BWS).

Some standouts among heavily traded stocks today include:

MGM Resorts International Inc. (NYSE: MGM) is up 6.5% at $13.21. The casino and resort operator is a likely target for further investment by Kirk Kerkorian’s Tracinda Corp. More coverage here.

SandRidge Energy Inc. (NYSE: SD) is down 3.3% at $5.66. The energy exploration and production company caved in to demands from a large investor and it looks the company’s CEO is headed for the door. More coverage here.

E*Trade Financial Corp. (NASDAQ: ETFC) is down 8.3% at $10.84. The online financial firm got battered after its largest investor said it would sell its entire stake in the company. More coverage here.

Stay tuned for Friday. Dallas Fed President Richard Fisher is giving a speech. We have also noted the following events on the schedule (all times Eastern):

8:30 a.m. – Consumer price index
8:30 a.m. – Empire State manufacturing index
9:00 a.m. – Treasury International Capital (TIC) data
9:15 a.m. – Industrial production
9:55 a.m. – University of Michigan/Thomson Reuters consumer sentiment index

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: AEO, AMZN, BFAM, BWS, EBAY, ETFC, LODE, MCP, MGM, MW, SD, SOL, VMW, VRA, WFC, ZUMZ

24/7 Wall St. Closing Bell — March 13, 2013: Markets Hold On for Small Gains (BA, ORCL, WAG, YUM, EPB, DOLE, COOL, PPHM, EXPR, BFAM, MW, VRA, LODE, SOL, SPPI, VLO, EBAY)

Paul Ausick — Wed, 13 Mar 2013 20:07:29 +0000

U.S. equity markets opened slightly lower this morning following on some poor data on eurozone industrial production, which fell more than expected. Non-farm payrolls fell more than expected in France and the country’s CPI rose less than analysts had forecast. There was no data out of Asia this morning, but there are worries that China will tighten lending requirements for home purchases as the country tries to cool off the real estate market. In the U.S., retail sales came in better than expected (more coverage here), but new applications for mortgages fell as interest rates rose (more coverage here). The Business Roundtable released its economic outlook for spring, which suggests that sales and capital spending will rise, but hiring will remain slow (more coverage here).

The U.S. dollar index rose 0.34% today, now at 82.865. The GSCI commodity index is up 0.1% at 649.62, with commodities prices mostly lower today. WTI crude oil closed down fractionally today, at $92.52 a barrel, following the release of the EIA’s inventory report (more coverage here). Brent crude trades down 1.2% at $108.40 a barrel. Natural gas is up 1% today at about $3.68 per million BTUs. Gold settled down 0.2% today at $1,588.40 an ounce, largely due to the stronger dollar.

The unofficial closing bells put the DJIA up more than 5 points to 14,455.28 (0.04%), the NASDAQ rose nearly 3 points (0.09%) to 3,245.12, and the S&P 500 rose 0.13% or about 2 points to 1,554.52.

There were a several analyst upgrades and downgrades today, including Boeing Co. (NYSE: BA) reiterated as ‘buy’ with a price target of $100 at BofA/Merrill Lynch; Oracle Corp. (NASDAQ: ORCL) raised to ‘buy’ at Canaccord Genuity; Walgreen Co. (NYSE: WAG) raised to ‘buy’ at UBS; Yum! Brands Inc. (NYSE: YUM) maintained as ‘outperform’ and price target raised to $70 at Credit Suisse; and El Paso Pipeline Partners LP (NYSE: EPB) cut to ‘neutral’ and price target raised to $44 at Credit Suisse (more coverage of MLP ratings here).

Earnings reports since markets closed last night resulted in several price moves today, including these: Dole Food Company Inc. (NYSE: DOLE) is down 8.8% at $10.70; Majesco Entertainment Co. (NASDAQ: COOL) is down 16.3% at $0.60; Peregrine Pharmaceuticals Inc. (NASDAQ: PPHM) is down 8.2% at $1.45; and Express Inc. (NYSE: EXPR) is down 2.7% at $18.35 (more coverage here).

Before markets open tomorrow morning we are scheduled to hear from Bright Horizons Family Solutions Inc. (NYSE: BFAM), Men’s Wearhouse Inc. (NYSE: MW), Vera Bradley Inc. (NASDAQ: VRA), Comstock Mining Inc. (NYSEMKT: LODE), and ReneSola Ltd. (NYSE: SOL).

Some standouts among heavily traded stocks today include:

Spectrum Pharmaceuticals Inc. (NASDAQ: SPPI) is down 37.6% at $7.76 after posting a new 52-week low of $7.73 earlier today. The drugmaker lowered full-year guidance today by 40%, and the shorts had a field day.

Valero Energy Corp. (NYSE: VLO) is down 4.4% at $43.53. The oil refiner received an analyst downgrade today linked to the rising cost of renewable fuel credits.

eBay Inc. (NASDAQ: EBAY) is down 4.4% at $50.65. The online auction site’s PayPal subsidiary purchased a mobile app developer today to help it fight against other online payment players.

Stay tuned for Thursday. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – New claims for unemployment benefits
8:30 a.m. – Producer price index
8:30 a.m. – Current account
10:30 a.m. – EIA weekly natural gas storage report
1:00 p.m. – 30-year bond auction
4:30 p.m. – Fed balance sheet and money supply

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: BA, BFAM, COOL, DOLE, EBAY, EPB, EXPR, LODE, MW, ORCL, PPHM, SOL, SPPI, VLO, VRA, WAG, YUM

Trader Alerts: 9 Big Stock Movers This Wednesday (BA, CMG, DELL, FIVE, GNW, ONXX, VRA, WEN, YHOO)

Jon C. Ogg — Wed, 16 Jan 2013 14:14:29 +0000

Many stocks are on the move this Wednesday morning and we are covering some of the key winners and losers for our readers.

Boeing Co. (NYSE: BA) is trading lower after all of its 787 dream liner plans have been grounded in Japan after an emergency landing occurred yesterday. This is leading the down low. Boeing shares are trading down about 4% at $74.01 this morning.

Chipotle Mexican Grill Inc. (NYSE: CMG) is trading down sharply after the company warned that higher food costs are going to bite into its fourth-quarter earnings. The good news is that its retail revenues were higher than expected. Shares are currently down almost 8% around $273.50.

Dell Inc. (NASDAQ: DELL) is trading down about 3% as the word of a buyout is not coming with a large premium and the recent rally may have already put in a cap in the shares. Dell shares are down more than 3% at $12.74 in very active trading before the open.

Five Below Inc. (NASDAQ: FIVE) is trading lower this morning after the company raised its fourth-quarter guidance but also said that it would sell 7 million shares in a secondary offering. Shares are down almost 2% around $31.25.

Genworth Financial Inc. (NYSE: GNW) is trading higher on news that it plans to create a new parent company with a $100 million or more contribution toward its money-losing mortgage insurance operations. This has been Genworth’s big thorn in its side and might allow it to finally get out from under this overhang. The move is to work around the company’s debt covenants. Genworth shares are up almost 9% at $8.85 this morning.

Onyx Pharmaceuticals Inc. (NASDAQ: ONXX) is trading lower this morning after the company disclosed that it plans to sell 4.4 million shares in a secondary offering. This represents more than 5% of the shares outstanding. Shares are down only about 2% so far at $81.90, but we would note that this is after one massive rally in 2012.

Vera Bradley Inc. (NASDAQ: VRA) is trading higher after the company raised its fourth-quarter earnings expectations. The company did say that it saw lower-than-expected traffic in the holiday season and that it may have flat same-store sales. Shares are still up about 8% closing in on $25 this morning.

Wendy’s Co. (NASDAQ: WEN) is trading higher this morning after the company’s fourth-quarter earnings rose to above expectations. The company did report one word of caution, and that was the margins and same-store sales are still not rising. Earnings should be in line to slightly above expectations for 2013. Wendy’s is trading up almost 4.5% at $5.12 this morning.

Yahoo! Inc. (NASDAQ: YHOO) is trading up more than 3% and back above $20 on news that Alibaba is now going to come public in an IPO. This will allow for more monetization of that asset.

Filed under: 24/7 Wall St. Wire, Active Trader, Pre-Market Activity Tagged: BA, CMG, DELL, FIVE, GNW, ONXX, VRA, WEN, YHOO

24/7 Wall St. Closing Bell — December 6, 2012: Markets Close Higher as Americans Shed Debt (JDSU, LGF, SCCO, SBUX, FIO, MW, SAI, VRA, LULU, SFD, TITN, HWD, PANW, SWHC, AKAM, T, ZNGA, GMCR)

Paul Ausick — Thu, 06 Dec 2012 21:08:52 +0000

U.S. equity markets opened mixed this morning following a decision by the European Central Bank to leave its interest rates unchanged (more coverage here). Third-quarter eurozone GDP was in line with the expected contraction of 0.1%. In Asia, data was mixed and so were markets. In the U.S., new claims for unemployment benefits were sharply lower last week (more coverage here), and a recent Gallup poll indicated a sharp rise in November’s unemployment rate (more coverage here). The Bureau of Labor Statistics’ unemployment will be out tomorrow morning and the rate is expected to remain unchanged at 7.9%. The Fed’s Flow of Funds report showed that households are still deleveraging, but that wealth continues to grow (more coverage here).

The U.S. dollar index rose today, now up 0.61% at 80.260. The GSCI commodity index is down 0.3% at 643.26, with commodities prices mixed today. WTI crude oil closed down 1.8% today, at $86.26 a barrel. Brent crude trades down 1.8% at $106.84 a barrel. Natural gas is down 1.1% today at about $3.66 per thousand cubic feet following an expected large drawdown last week (more coverage here). Gold settled up 0.5% today at $1,701.80 an ounce.

The unofficial closing bells put the DJIA up nearly 40 points to 13,074.04 (0.30%), the NASDAQ rose nearly 16 points (0.52%) to 2,989.27, and the S&P 500 rose 0.33% or nearly 5 points to 1,413.91.

There were several analyst upgrades and downgrades today, including JDS Uniphase Corp. (NASDAQ: JDSU) cut to ‘market perform’ at Raymond James; Lions Gate Entertainment Corp. (NYSE: LGF) started as ‘neutral’ at Goldman Sachs; Southern Copper Corp. (NYSE: SCCO) raised to ‘buy’ at Citigroup; Starbucks Corp. (NASDAQ: SBUX) raised to ‘outperform’ at Baird; and Fusion-io Inc. (NYSE: FIO) started as ‘buy’ at BofA/ML.

Earnings reports since markets closed last night have resulted in several price changes for reporting companies as of the last half hour of trading today: Men’s Wearhouse Inc. (NYSE: MW) is down 3.6% at $30.23; SAIC Inc. (NYSE: SAI) is down 3.5% at $11.26; Vera Bradley Inc. (NASDAQ: VRA) is down 12.1% at $23.05; Lululemon Athletica Inc. (NASDAQ: LULU) is up 6.7% at $73.21 (more coverage here); Smithfield Foods Inc. (NYSE: SFD) is up 0.2% at $22.94 (more coverage here); and Titan Machinery Inc. (NASDAQ: TITN) is up 1.6% at $23.51 (more coverage here).

Before markets open tomorrow morning we are scheduled to hear from Harry Winston Diamond Corp. (NYSE: HWD), Palo Alto Networks Inc. (NYSE: PANW), and Smith & Wesson Holding Co. (NASDAQ: SWHC).

Some standouts from today include the following stocks:

Akamai Technologies Inc. (NASDAQ: AKAM) is up 9.8% at $38.96. The network equipment company has signed a new alliance deal with AT&T Inc. (NYSE: T). More coverage here.

Zynga Inc. (NASDAQ: ZNGA) is up 8.2% at $2.51. The social network game company has applied for a Nevada state gambling license. More coverage here.

Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) is down 8% at $37.87. The coffee purveyor dipped following the aggressive growth plan mapped out yesterday by competitor Starbucks.

Stay tuned for Friday. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – Non-farm payroll and unemployment report
9:55 a.m. – University of Michigan/Thomson Reuters consumer sentiment index
3:00 p.m. – Consumer credit

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: AKAM, FIO, GMCR, HWD, JDSU, LGF, LULU, MW, PANW, SAI, SBUX, SCCO, SFD, SWHC, T, TITN, VRA, ZNGA

24/7 Wall St. Closing Bell — December 5, 2012: Markets Close Mixed on Tech Weakness (ADTN, KMP, CLF, INTC, RAX, MFRM, P, FRAN, MW, SAIC, VRA, LULU, SFD, TITN, FCX, MMR, PXP, NOK, CHL, TIBX)

Paul Ausick — Wed, 05 Dec 2012 21:02:49 +0000

U.S. equity markets opened essentially flat again this morning as investors waited to see what would happen with the many data releases due out today. In Europe, the non-manufacturing PMI numbers were mixed, with Germany and Spain better than expected while France and Italy were worse (more coverage here). Retail sales in the eurozone also came in significantly worse than expected. In Asia, the new leaders of China have said that they plan to invest more in infrastructure and to ease some investment rules (more coverage here). Some investors read this to mean more stimulus is coming. In the U.S., mortgage applications were up (more coverage here), and factory orders and non-manufacturing PMI also rose more than expected (more coverage here).

The U.S. dollar index rose today, now up 0.16% at 79.773. The GSCI commodity index is down 0.9% at 644.95, with commodities prices mostly higher today. WTI crude oil closed down 0.7% today, at $87.88 a barrel, following this week’s petroleum status report (more coverage here). Brent crude trades down 1% at $108.77 a barrel. Natural gas is up 4.4% today at about $3.69 per thousand cubic feet. Gold settled down 0.1% today at $1,693.80 an ounce.

The unofficial closing bells put the DJIA nearly 83 points to 13,034.45 (0.64%), the NASDAQ fell more than 23 points (-0.78%) to 2,973.31, and the S&P 500 rose 0.16% or more than 2 points to 1,409.27.

There were several analyst upgrades and downgrades today, including ADTRAN Inc. (NASDAQ: ADTN) cut to ‘sell’ at Citigroup; Kinder Morgan Energy Partners LP (NYSE: KMP) maintained as ‘outperform’ but estimates cut and target price lowered to $92 at Credit Suisse; Cliffs Natural Resources Inc. (NYSE: CLF) cut to ‘sector perform’ at RBC; Intel Corp. (NASDAQ: INTC) cut to ‘underperform’ at Raymond James; and Rackspace Hosting Inc. (NYSE: RAX) started as ‘overweight’ at J.P. Morgan.

Earnings reports since markets closed last night have resulted in several price changes for reporting companies as of the last half hour of trading today: Mattress Firm Holding Corp. (NASDAQ: MFRM) is down 20.8% at $24.00 (more coverage here); Pandora Media Inc. (NYSE: P) is down 18.2% at $7.73 (more coverage here); and Francesca’s Holdings Corp. (NASDAQ: FRAN) is up 0.7% at $26.99 (more coverage here).

Before markets open tomorrow morning we are scheduled to hear from Men’s Wearhouse Inc. (NYSE: MW), SAIC Inc. (NYSE: SAI), Vera Bradley Inc. (NASDAQ: VRA), Lululemon Athletica Inc. (NASDAQ: LULU), Smithfield Foods Inc. (NYSE: SFD) and Titan Machinery Inc. (NASDAQ: TITN).

Some standouts from today include the following stocks:

Freeport McMoRan Copper & Gold Inc. (NYSE: FCX) is down 16% at $32.17. The mining company has agreed to acquire both McMoRan Exploration and Production Co. (NYSE: MMR) and Plains Exploration & Production Co. (NYSE: PXP) for about $9 billion. Shares of McMoRan are up 87.7% at $XX and shares of Plains are up 23.8% at $44.65. More coverage here.

Nokia Corp. (NYSE: NOK) is up 11.8% at $3.85. The mobile phone maker continues to shine on its agreement with China Mobile Ltd. (NYSE: CHL).

TIBCO Software Inc. (NASDAQ: TIBX) is down 19% at $20.01 after posting a new 52-week low of $18.95 earlier today. The software infrastructure company warned on fourth-quarter earnings last night.

Stay tuned for Thursday. We have noted the following events on the schedule (all times Eastern):

7:30 a.m. – Challenger job-cut report
8:30 a.m. – New claims for unemployment benefits
10:30 a.m. – EIA weekly natural gas storage report
3:00 p.m. – Treasury STRIPS
4:30 p.m. – Fed balance sheet and money supply

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: ADTN, CHL, CLF, FCX, FRAN, INTC, KMP, LULU, MFRM, MMR, MW, NOK, P, PXP, RAX, SAIC, SFD, TIBX, TITN, VRA

America’s Most Profitable Stores

Mike Sauter — Wed, 14 Nov 2012 11:27:14 +0000

Apple Inc. (NASDAQ: AAPL) has the most successful retail stores by a wide margin. According to RetailSails, a retail and consumer goods consulting firm, the tech giant’s 372 worldwide locations sold goods at a rate of more than $6,000 per square foot of floor space in the past 12 months. The average store of the next most successful company in the United States, Tiffany & Co. (NYSE: TIF), sold less than half that figure per square foot.

Also Read: The 10 Companies That Control the News

In the low-end department stores and supermarkets, sales per square foot were in many cases less than $100. Hancock Fabrics, a fabric retailer, brought in just $72 per square foot. Meanwhile, the retailers with the most profitable stores brought in more than $1,000 per square foot. These are mostly high-end brands, selling much more expensive products. Based on the RetailSails report, 24/7 Wall St. identified the nine most successful retail stores in America.

In the case of most department stores and discount stores like Wal-Mart Stores Inc. (NYSE: WMT), Kmart and Family Dollar Stores Inc. (NYSE: FDO), most items cost less than $100, and most stores are very large. The average retail space in some of the least successful stores by sales per square foot is at least 10,000 square feet. This prevents the total profits per square foot from exceeding several hundred dollars, even among the most popular stores.

For the nine most profitable corporate stores, the opposite is true. They sell luxury goods, in apparel, accessories, electronics or jewelry. Their products are often quite expensive, while the stores are generally relatively small. Much of the merchandise companies such as Apple, Tiffany and Coach Inc. (NYSE: COH) sell costs in the hundreds of dollars or more. At the same time, the average store floor space of most of these companies is less than 5,000 square feet. While total sales of the average Kmart store is roughly double what Lululemon Athletica Inc. (NASDAQ: LULU) stores do, the average floor space of a Lululemon is only 1/34th that of a Kmart store.

Because most of the profitable stores sell luxury items, they tend to be more selective in the markets they enter. Several of these companies have fewer than 100 stores nationwide. Birks & Mayors Inc. (NYSEMKT: BMJ) has only 57. Even stores that average small retail space, such as RadioShack Corp. (NYSE: RSH), turn low profit per square foot because they have hundreds of low-profit stores in low-income communities. RadioShack has 4,423 stores.

In many ways, Apple, the most successful store in terms of profit per square feet, is different from each of the other eight companies on this list. Companies like Tiffany, Coach and Select Comfort Corp. (NASDAQ: SCSS) rely primarily on their brick-and-mortar stores. Apple makes the vast majority of its sales and profits online, with its physical stores serving as hubs to improve branding and showcase new products. Apple’s business model of regularly releasing new buzz products, such as the latest iPhone, draws in large crowds of customers looking to buy these item as soon as they hit the shelves.

Relying on RetailSails’ 2012 Chain Store Productivity Guide, 24/7 Wall St. identified the nine companies with the highest sales per square foot, based on the past 12 months of sales. Retailsails also provided average store size, average annual sales per store, one-year sales growth and the number of stores.

These are America’s most profitable stores.

Filed under: Apparel, Luxury, Retail, Special Report Tagged: AAPL, BMJ, COH, FDO, featured, GOOG, JWN, KORS, LULU, MSFT, RSH, SCSS, TIF, TRLG, VRA, WMT

24/7 Wall St. Closing Bell — August 30, 2012: Markets Slide Waiting for Bernanke (HUM, YGE, AET, LPX, CTXS, LTRX, CHUY, TIVO, VRA, TD, OVTI, SAI, ZUMZ, P, CIEN, FSLR)

Paul Ausick — Thu, 30 Aug 2012 20:05:12 +0000

The three major U.S. stock indexes opened lower this morning on an absence of new data from overseas and an expected drop in new claims for unemployment benefits did not occur (our coverage here). Encouraging reports on August retail sales (more coverage here) bolstering a July rise in personal consumption expenditures of 0.4% (our coverage here). But the news everyone is waiting for won’t come until tomorrow, when Fed chairman Ben Bernanke gives a speech from the Jackson Hole conference. Will the Fed commit to more easing or won’t it? Bernanke is most likely to indicate in the oblique manner of the Fed that August unemployment figures, due out next Friday, will drive the decision on easing.

The U.S. dollar index rose today, now up 0.18% at 81.696. The GSCI commodity index is up fractionally today at 668.71, with commodities prices mostly higher and corn at around $8.10/bushel. WTI crude oil finished down 0.9% today, closing at $94.62/barrel. Brent crude trades slightly higher at $112.66/barrel. Natural gas is up 2.4% today to $2.75/thousand cubic feet following the weekly storage report (more coverage here). Gold settled at $1,657.10/ounce, down 0.4% again today.

The unofficial closing bells put the DJIA down nearly 107 points to 13,000.78 (-0.81%), the NASDAQ fell more than 32 points (-1.05%) to 3,048.71, and the S&P 500 fell -0.78% or about 11 points to 1,399.50.

There were several analyst upgrades and downgrades today, including Humana Inc. (NYSE: HUM) cut to ‘neutral’ with a lowered target price of $74 at Credit Suisse; Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) cut to ‘sell’ with a target price of $1.00 at ThinkEquity; Aetna Inc. (NYSE: AET) started as ‘neutral’ with a $43 target price at Credit Suisse; Louisiana-Pacific Co. (NYSE: LPX) raised to ‘buy’ with a $16 target price at BofA; and Citrix Systems Inc. (NASDAQ: CTXS) started as ‘neutral’ at Longbow Research.

Some companies that reported earnings since markets closed last night and have share price changes as of the last half hour of trading today include Lantronix Inc. (NASDAQ: LTRX) is down 7.9% at $1.87; Chuy’s Holdings Inc. (NASDAQ: CHUY) is up 7.5% at $20.70 after posting a new 52-week high of $21.60; Tivo Inc. (NASDAQ: TIVO) is down 2.1% at $9.16; Vera Bradley Inc. (NASDAQ: VRA) is down 8.3% at $21.66; and The Toronto-Dominion Bank (NYSE: TD) is down 1.3% at $81.29.

Earnings releases scheduled before markets open tomorrow morning include Omnivision Technologies Inc. (NASDAQ: OVTI), SAIC Inc. (NYSE: SAI), and Zumiez Inc. (NASDAQ: ZUMZ).

Some standouts from today include the following stocks:

Pandora Media Inc. (NYSE: P) is up 16.1% at $11.70. The internet radio provider beat earnings expectations last night and raised guidance. More coverage here.

Ciena Corp. (NASDAQ: CIEN) is down 19.1% at $13.53. The networking coverage missed its EPS expectations and forecast a weaker quarter going forward. More coverage here.

First Solar Inc. (NASDAQ: FSLR) is down 17.3% at $20.02. The solar panel maker is ahead of schedule on a big project and will have to stop work for a while. More coverage here.

Stay tuned for Friday. Fed Chairman Ben Bernanke’s long-awaited remarks from Jackson Hole are scheduled for 10 a.m. tomorrow morning. We have noted the following events on the schedule (all times Eastern):

9:45 a.m. – Chicago PMI
9:55 a.m. – University of Michigan/Reuters consumer confidence index
10:00 a.m. – Factory orders
3:00 p.m. – Farm prices

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: AET, CHUY, CIEN, CTXS, FSLR, HUM, LPX, LTRX, OVTI, P, SAI, TD, TIVO, VRA, YGE, ZUMZ

24/7 Wall St. Closing Bell — August 29, 2012: Markets Rise on Slim Economic News (WPI, SCHN, IBM, BIDU, IDXX, TFM, GCO, HNZ, ISLE, JASO, JOY, YGE, ZLC, LTRX, P, TIVO, VRA, TD, YELP, MCP, NOK)

Paul Ausick — Wed, 29 Aug 2012 20:04:07 +0000

The three major U.S. stock indexes opened slightly higher this morning following an upward revision to the U.S. second quarter GDP growth reading to 1.7%, above the 1.5% preliminary reading and better than the 1.6% forecast (our coverage here). U.S. mortgage application numbers were lower in the past week, even though interest rates were also lower (our coverage here). Pending home sales rose 2.4% (more coverage here) and crude oil inventories were higher, lowering crude prices and weighing on energy stocks (our coverage here). The Fed Beige Book was released in mid-afternoon and indicated “gradual” growth in the U.S. economy, but the tea leaves related to a next round of easing were indecisive. We’ll just have to wait for the Jackson Hole meeting for some more clarity apparently.

The U.S. dollar index rose today, now up 0.23% at 81.559. The GSCI commodity index is up 0.2% today at 668.50, with commodities prices mostly higher and corn back above $8.00/bushel. WTI crude oil finished down 0.9% today, closing at $95.49/barrel. Brent crude trades flat at $112.58/barrel. Natural gas is up 0.8% today to $2.635/thousand cubic feet. Gold settled at $1,663.00/ounce, down 0.4%.

The unofficial closing bells put the DJIA up more than 5 points to 13,108.18 (0.04%), the NASDAQ rose about 4 points (0.13%) to 3,081.19, and the S&P 500 rose 0.09% or about 1 point to 1,410.51.

There were several analyst upgrades and downgrades today, including Watson Pharmaceuticals Inc. (NYSE: WPI) reiterated as ‘buy’ and target price raised to $100 at Argus; Schnitzer Steel Industries Inc. (NASDAQ: SCHN) cut to ‘sell’ at CLSA; International Business Machines Corp. (NYSE: IBM) reiterated as ‘buy’ with a target price of $235 at Argus; Baidu Inc. (NASDAQ: BIDU) target price cut to $153 at Barclays; and IDEXX Laboratories Inc. (NASDAQ: IDXX) started as ‘hold’ at Canaccord Genuity.

Some companies that reported earnings since markets closed last night and have share price changes as of the last half hour of trading today include Fresh Market Inc. (NASDAQ: TFM) down 3.6% at $59.49 after posting a new 52-week high of $65.69 earlier today; Genesco Inc. (NYSE: GCO) up 1.2% at $72.01; H.J. Heinz Co. (NYSE: HNZ) down 2.3% at $56.12 after posting a new 52-week high of $57.37 earlier today (more coverage here); Isle of Capri Casinos Inc. (NASDAQ: ISLE) up 4% at $6.45; JA Solar Holdings Co. Ltd. (NASDAQ: JASO) down 8.5% at $0.98 (more coverage here); Joy Global Inc. (NYSE: JOY) up 3.2% at $54.78; Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) down 3.6% at $1.88; and Zale Corp. (NYSE: ZLC) up 3.9% at $4.28 (more coverage here).

Earnings releases scheduled before markets open tomorrow morning include Lantronix Inc. (NASDAQ: LTRX), Pandora Media Inc. (NYSE: P) (more coverage here), Tivo Inc. (NASDAQ: TIVO), Vera Bradley Inc. (NASDAQ: VRA), and The Toronto-Dominion Bank (NYSE: TD).

Some standouts from today include the following stocks:

Yelp Inc. (NYSE: YELP) is up 22.9% at $22.44. The social media firm’s lockup period ends today and the company reports earnings after markets close. Could be a short squeeze, with 22% of the company’s outstanding shares held short. More coverage here.

Molycorp Inc. (NYSE: MCP) is up 15.2% at $12.38. The rare earths miner got an upgrade to ‘buy’ on the strength of the company’s production start. More coverage here.

Nokia Corp. (NYSE: NOK) is down 4% at $2.91. The mobile device maker is giving back more gains, the classic “gap and crap” play. More coverage here.

Stay tuned for Thursday. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – New claims for unemployment benefits
8:30 a.m. – Personal income and outlays
10:30 a.m. – EIA weekly natural gas storage report
11:00 a.m. – Kansas City Fed manufacturing index
1:00 p.m. – 7-year note auction
4:30 p.m. – Fed balance sheet and money supply

Paul Ausick

Filed under: 24/7 Wall St. Wire, HI/LOW, Market Close Tagged: BIDU, GCO, HNZ, IBM, IDXX, ISLE, JASO, JOY, LTRX, MCP, NOK, P, SCHN, TD, TFM, TIVO, VRA, WPI, Yelp, YGE, ZLC

24/7 Wall St. Top Analyst Calls of the Week (BSFT, FB, RAD, SNDK, STI, VE, VRA)

Jon C. Ogg — Sat, 09 Jun 2012 13:20:13 +0000

Each morning 24/7 Wall St. releases the top analyst upgrades and downgrades seen from Wall Street firms. After reviewing those calls and other calls not covered in the morning summaries, we find that some of these calls offered keen insight, or they created large moves in the share price, or there was some key data that is not widely followed by the public. These become the Top Analyst Calls of the Week.

This last week’s top analyst upgrades, downgrades and initiations were in the following companies: BroadSoft, Inc. (NASDAQ: BSFT); Facebook, Inc. (NASDAQ: FB); Rite Aid Corporation (NYSE: RAD); SanDisk Corporation (NASDAQ: SNDK); SunTrust Banks, Inc. (NYSE: STI); Veolia Environnement SA (NYSE: VE); and Vera Bradley, Inc. (NASDAQ: VRA). We have compiled a summary and color on each with links to more detail if applicable.

BroadSoft, Inc. (NASDAQ: BSFT) has been winning industry accolades of late, but its stock has gone nowhere with the unified communications technology. Mizuho maintained its BUY rating on Friday but lowered the target to $35 from $54 on the stock. Shares were down over 5% at $27.60 in the final minutes of Friday’s session after what looked like a recovery in its chart.

Facebook, Inc. (NASDAQ: FB) received a bit of a strange upgrade from S&P Capital IQ this week, only to HOLD from SELL. JMP Securities also start coverage with an OUTPERFORM rating. This is all after one analyst predicted that Facebook would be dead in just five years. We ran our own analysis on Friday and this one looks like Facebook shares are finally wanting to bottom out after being down 30% from the IPO pricing. FULL REVIEW

Rite Aid Corporation (NYSE: RAD) hardly budged on Friday and the stock was down almost 2% at $1.22 in the late session on Friday. The movement is not unusual at all, but the upside and takeout talk was… Credit Suisse reiterated its OUTPERFORM rating and its $2.00 target, but more importantly it chatted up Rite Aid’s long-term buyout prospects from the likes of a Walgreen Co. (NYSE: WAG). FULL DETAILS

SanDisk Corporation (NASDAQ: SNDK) was initiated by Pacific Crest with an OUTPERFORM rating and it set a $47.00 price target. While the upside to the price target was nearly 50%, the report actually claims that SanDisk trades at a 70% discount to its asset value. SanDisk was up well over 5% on the call when covered it around $33.25 but the stock continued to rise throughout the week to close out at $35.43 for continued strength here after this call. FULL SUMMARY

SunTrust Banks, Inc. (NYSE: STI) is effectively all tied to the United States. Many investors hate all banks right now and analysts have been negative on the long-term prospects of most money-center banks and larger regional banks. So when this was raised to BUY from HOLD on Friday at Argus with a $30 price target the 30% or so upside sure stood out. Earlier in the week we saw that Evercore raised its rating to OVERWEIGHT with a $27 price target.

Veolia Environnement SA (NYSE: VE) has been a battered water and environmental player for longer than its shareholders would like to consider. It is also French, so many US investors do not follow it even though it is key to many water portfolios for investors. Less than 5-years ago this ADR traded at $90 and now it trades at $12.44 as its turnaround has been very slow and as a new management team tries to implement a leaner more focused plan. Barclays on Friday started shares with an OVERWEIGHT rating and its translated upside is close to 20%. If Barclays is right here (only 2 upgrades recently, in April), then more analysts will start to upgrade this one and the upside would likely be far higher.

Vera Bradley, Inc. (NASDAQ: VRA) has been battered after having had a great post-IPO run. Many analysts got out of the way on this one and CNBC’s Herb Greenberg has been pointing out many of the ongoing issues here for quite some time. But on Wednesday came a report from KeyBanc, which raised the rating to BUY from HOLD and gave a $26 price target. SHares closed at $20.20 the night before that early call and the stock closed the week out at $22.81 for more than a 10% gainer on the call.

Also Read:

S&P Threatens US Credit Rating Over Budget Matters
Moody’s Warns of More Eurozone Downgrades

If you enjoyed the top analyst upgrades and downgrades of the week, you can join our free email newsletter that includes analyst summaries each morning sent right to your inbox. We also cover top issues such as IPOs, special financial exclusives, guru trading, mergers and more. Sign up in the box below.

JON C. OGG

Filed under: Analyst Calls, Calendar, The Week Tagged: BSFT, FB, RAD, SNDK, STI, VE, VRA, WAG