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Wednesday, Dec 19
2012, 3:30 PM
Retail Geeks think it's more productive to compare gross profit margins for apparel retailers on...
Retail Geeks think it's more productive to compare gross profit margins for apparel retailers on a 2-3 year time time frame instead of getting lost in the noise of a Y/Y comparison. The longer view gives a clearer picture of which firms are able to re-capture lost merchandising margins from higher sourcing costs. After crunching the numbers, margin trends at Aeropostale (ARO), J.C. Penney (JCP), Children's Place (PLCE), and Urban Outfitters (URBN) look broken. On the flip side, Dick's Sporting Goods (DKS), Hibbett Sports (HBB), and Dillard's (DDS) show some promise.