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Team 7 Tara, Danielle, Stephanie, Abby

Team 7 Tara, Danielle, Stephanie, Abby. Mad Money - Apparel Stock Picks. Apparel Industry Climate. Expected to be worst holiday shopping season in 17 years Most companies will have to close stores, cut spending, and reduce inventory Companies must deliver value Trendy stores will suffer.

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Team 7 Tara, Danielle, Stephanie, Abby

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  1. Team 7Tara, Danielle, Stephanie, Abby Mad Money - Apparel Stock Picks

  2. Apparel Industry Climate • Expected to be worst holiday shopping season in 17 years • Most companies will have to close stores, cut spending, and reduce inventory • Companies must deliver value • Trendy stores will suffer

  3. Apparel Industry Averages • Price/Earnings Ratio = 10.02 • ROE = 8.6% • ROA = • EPS = $2.03

  4. American Eagle Outfitters AEO

  5. American Eagle Outfitters • Last trade: $9.67 • 52-week high: $23.94 • 52-week low: $9.00 • Beta: 1.26 • ROE: 24.72% • ROA: 17.18%

  6. American Eagle Outfitters • Yahoo rating: 2.8 • Morningstar rating: 5 stars • Growth: B • Profitability: A • Financial Health: B

  7. Urban Outfitters Inc. URBN

  8. Key Statistics • Today’s Open = • Beta = 1.17 • Price/Earnings Ratio = 18.12 • ROE = 23.2% • ROA = 10.17% • EPS = $1.20 • 52-Week High = $38.40 • 52-Week Low = $16.61

  9. Key Statistics • Morningstar = 4 stars • Growth = B • Profitability = C • Financial Health = A • Yahoo! Mean Recommendation = 2.1

  10. 1 – Year Chart

  11. Gap, Inc. GPS

  12. Key Statistics • Today’s Open = • Beta = 1.08 • Price/Earnings Ratio = 9.88 • ROE = 20.7% • EPS = $1.31 • Market Cap. = $8.91 billion • 52-Week High = $22.02 • 52-Week Low = $11.01

  13. Key Statistics • Morningstar = 4 stars • Growth = C • Profitability = C • Financial Health = B • Yahoo! Mean Recommendation = 2.6

  14. 1 – Year Chart

  15. Abercrombie & Fitch ANF

  16. Abercrombie & Fitch • Beta: 1.56 • ROE: 29.36 • ROA: 18.83 • Sales: 3.85 Billion • Income: 474.29 Million • Net Profit Margin: 12.32% • Debt/Equity Ratio: 0.08

  17. Abercrombie & Fitch • Morningstar = 5 stars • Yahoo! Mean Recommendation = 2.8 • Growth = B • Profitability = A • Financial Health = B • News: • New CFO • Teen apparel on the up • Hopeful Christmas shopping

  18. Abercrombie & Fitch

  19. Aeropostale ARO

  20. Aeropostale, Inc. • 800 Stores in the U.S. and Canada • 2007 Generated $1.59 billion in net sales • Main Competitors: • American Eagle Outfitters • Abercrombie & Fitch • Hollister Co.

  21. Why Pick Aeropostale? • Less Risky- Beta 1.17 • A&F 1.57 • American Eagle 1.19 • P/E is higher than both A&F and American Eagle Outfitters • Not as a significant price drop in a 52 week period • A&F from $84.54- 23.75

  22. Aeropostale • Morningstar = 4 stars • Growth = B • Profitability = A • Financial Health = B • Yahoo! Mean Recommendation = 2.7

  23. Aeropostle, AE, A&F

  24. Questions?

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