Lululemon Athletica

Joe's Jeans Truly Tight Fit

Come to a decision test a quarterly earnings report from Joe's Jeans (Nasdaq: JOEZ)? Let us get one leg at that time?

The superior jean material specialized circulated unimpressive general results, as well as fledgling retail business was all around the map. The effect must have been a sharp dip in profitability, despite an improved-than-expected 20% surge in sales.

Let's focus on the company's bread-and-butter wholesale business, which makes up 84% of overall revenue. Revenue climbed 7%, with Joe's Jeans growing its offerings beyond its flagship denim. During the last year, non-denim sales have grown from 3% to 16% in the wholesale top-line mix. Diversification is good, nonetheless the intended will fall on corduroy is problematic.

Indeed, the economy remains as unfashionable as donning black socks in flip flop sandals. That isn't the best time for being pitching $200 jeans. However, the advantages see double-digit sales growth at rival True Religion (Nasdaq: TRLG) when it reports the following month. It cannot be everything bad.

Wholesale gross margins dropped annually, but did improve sequentially. That wholesale operating profit dipped 12% to $5.7 million isn't good, but it's hardly an agreement breaker.

The results at Joe's Jeans is tested after we turn our awareness of the fast-growing -- but cash-sucking -- retail division. Furthermore this is still a little chunk of this revenue mix, but it is also the apparel company's best potential catalyst.

Within the last year, Joe's Jeans is now from just five locations to 14 stores -- with any number of the recent openings occuring at high-traffic premium outlet malls. Retail sales over tripled to $4.2 million through quarter, and also the 223% surge wasn't entirely the handiwork of expansion. Same-store sales clocked in at an outstanding 23.5%.

Unfortunately, the location-level popularity was the result of clearing out dated items at steep discounts. Gross margins took famous, though in the final analysis throughout Joe's Jeans' retail operating loss narrowed substantially.

Joe's Jeans' decision to become an upscale retailer will be the wild card here. A hot brand can spawn a retail empire. Nike (NYSE: NKE) was obviously a wholesale winner in athletic footwear before rolling out its stores. Remember when Apple (Nasdaq: AAPL) didn't have its namesake stores?

Has Joe's Jeans earned the legal right to work next hot retailer? Not even, but there's potential. The business's blog is rich with snapshots of celebrities photographed with Joe's clothing. Growing its store base may be as ambassadorial which is just good business.

We're still 1 / 4 clear of the telltale holidays. That is the thesis uses a shot in order to off. If Joe's Jeans can deliver strong comps and healthy margins along the retail level -- and denim sales in the wholesale level get on the right track -- this will be a retail stock worth respecting. Just outside of fast-growing yoga apparel specialist lululemon athletica (Nasdaq: LULU), there's an easy shortage of hot public chains which could be still at the start of their expansion cycles.

True religion Jeans can perform it, but this long choice to prove that must be designed to last.

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Is the lululemon outlet cheaper?

I've recently read that a lululemon athletica outlet opened at Premium Oulets in Orlando, Florida. If anybody has been there yet, is it any cheaper there? also, is there good selections and styles?
please answer ;O

I have found that "outlet" no longer means "cheap" like it used to mean. Mostly it's now just a place companies put there discontinued or out of season clothes but they generally aren't much cheaper than the regular prices.

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